Rated as one of the most successful businesses to appear on Shark Tank, Scrub Daddy is a cleaning tools company created by Aaron Krause. Its bestselling product is the multi-purpose polymer sponge with a smiley face. As of 2022, Scrub Daddy is worth $150 million and is on track to make over $100 million this year.
About the Founder
Aaron Krause, the owner of Scrub Daddy, is the son of two doctors in Wynnewood, Pennsylvania. He started inventing things at an early age and later studied psychology at Syracuse University.
After graduating, he started a car washing company, where he first understood the nature of various cleaning materials. He wasn’t satisfied with the buffing pads available at the time, so he made his own invention.
He got a patent for his buffing pads, which became his new business focus. Krause also made the necessary manufacturing devices for his new creation and sold the car washing business not long after.
Establishing Scrub Daddy
The aspiring entrepreneur developed his own cleaning products for his manufacturing machinery. He got a tailor-made foam from Germany. He sliced it into a two-holed, ridged circle to help him hold it better. This was the birth of the smiley face sponge.
In 2008, Krause’s buffing pad company was acquired by 3M, the biggest manufacturing firm in the world. However, his infamous sponge wasn’t included in the purchase. As a result he
Three years later, he discovered that his sponge had the ability to harden in cold water and soften in hot water. In 2012, Scrub Daddy was officially launched, and Aaron presented it on the home shopping network QVC.
Shark Tank Appearance
Krause’s stint with QVC was very fruitful, having sold out all of his units multiple times. However, he knew that his startup wasn’t reaching its true potential. After watching Shark Tank with his wife, he thought it would be wise to bring on a strategic partner to expand into retail. At the time of the pitch, he was in only five supermarkets.
He appeared in season four, seeking $100,000 for a 10% stake in his company. Aaron made a very energetic presentation that captured the attention of the Sharks. Kevin O’Leary started the bidding war by offering $100,000 for 50%, but Aaron declined without hesitation.
Daymond John wanted to split a deal with the Queen of QVC, Lori Greiner. However, Lori wanted to go solo as she didn’t need Daymond. Lori ended up offering $200,000 for 20% and Aaron Krause happily accepted the offer!
After Shark Tank
The day after Krause’s episode aired on Shark Tank, he sold 42,000 sponges in less than seven minutes. Lori Greiner also helped the cleaning tool brand get into all the major retail stores across the United States.
In January 2017, Scrub Daddy had done over $100 million in revenue and lifetime sales were $209 million by October 2019. In 2021 revenue growth was 80% year over year and in 2022 the company will do over $100 million in sales. Based on this forecast lifetime sales should surpass $300 million by the end of the year.
They are now selling more than 20 products! To meet demand, he also ramped up production by expanding its manufacturing headquarters to 80,000 square feet. Aaron and his team currently use TikTok to advertise their products through viral marketing.
Today, Scrub Daddy is considered the third-biggest sponge provider in America. With this, Aaron Krause’s personal net worth is $70 million and Scrub Daddy is worth an estimated $150 million.