MTailor Shark Tank Update | MTailor after Shark Tank
What is MTailor?
MTailor is a made-to-measure online menswear company, which lets you build your own custom suits, shirts, and pants. Each order is designed to fit the unique shape of your body.
The MTailor app for Android and iOS enables customers to gain a more accurate understanding of their body measurements prior to purchasing custom-fit apparel. Users can choose from more than 10,000 costumes.
In 2013, Miles Penn co-founded MTailor. When he developed this program, he was a Stanford University student.
He created the application during his senior year of high school and launched the firm after demonstrating that the prototype functioned. Miles Penn is the CEO of Bit Body, Inc., the parent company of MTailor.
Who is the Founder of MTailor?
Miles Penn, a former Stanford University student, is the founder and head of MTailor.
Miles Penn first became interested in entrepreneurship and startups while he was studying as an undergraduate at Stanford. He started his first business, a personal training service for students, during his sophomore year.
Miles Penn says that he enjoys shopping online. Regrettably, he had a poor experience when he often received ill-fitting clothing from internet retailers. These recurrent disappointments inspired him to develop a solution.
He was also inspired to design the app since he believed that shopping was a waste of time. Miles reasoned that he might utilize that time for other purposes.
To overcome the obstacles he encountered, MTailor was designed to correctly record the 17 locations on a person’s body.
The Android and iPhone software measures their physique in a similar manner to that of a tailor, and then allows consumers to get a custom made shirt or suit online.
Shirts start at $69 – less than half the price of traditional fitted shirts.
Penn was inspired to create MTailor by his hesitation to purchase clothing online. He purchased everything online except clothing, as he despised receiving ill-fitting garments and the return process.
When he went in search of a solution, he discovered a viable business opportunity. Now, the MTailor app promises to be 20% more accurate than a genuine tailor’s measurement.
Penn’s venture capital firm has a solid early investor base. They incubated the business at Y Combinatory and raised $2 million in investment from Khosla Ventures, a venture capital firm founded in 2004 by Sun Microsystems co-founder Vinod Khosla.
What Happened to MTailor at Shark Tank pitch?
Miles Penn sought the Shark Tank investors for collaboration after a lengthy period of product development.
Miles seeks $2.5 million for a 10% stake in his firm, which is valued at $25 million.
He informs the Sharks that he despises coming to the mall, but that internet shopping has gotten worse in recent years. His program uses a phone to measure shirts and is more accurate than a real-life tailor.
Miles demonstrates how to order a shirt from a selection of over 10,000 style and color options. To begin, select a style, then rest the phone against a wall and do a single spin.
In less than 30 seconds, the software calculates the size of a shirt based on the video. Due to the absence of a store and a tailor, he can offer a bespoke shirt for 69 dollars – about half the price of other custom shirts.
The app’s patented methodology utilizes 14 measuring points. Miles receives around 15% of returns, compared to 25% at a retail store.
Immediately following the demo, Daymond casts doubt on the valuation. Miles informs him that income was $150,000 each month in July, but has since decreased.
He had anticipated $2 million in sales, but is currently on track to earn only $1.1 million. Additionally, he claims to have $1.4 million in the bank.
Revenue decreased as a result of supply chain difficulties he has to address: he is still paying too much for shirts despite his volume.
MTailor is looking for assistance with its supply chain and believes Daymond might be an asset.
He claims that he raised $2 million at a $10 million value to justify his valuation. His technology is unique, and he is concentrating his efforts on developing a brand and mainstreaming personalized clothing.
Sacca reports that his pitch and explanation of his value aren’t going well, and he’d like to know whether the first investors would invest at a $25 million price.
All five Sharks remain in, although they have reservations about the valuation. Miles asserts that he is not attempting to exploit anyone.
Sacca asserts that the difficulties he is experiencing are unrelated to the value.
Miles believes that with the cash in the bank, they can quickly reach Ramen profitability. Sacca asserts that he is incapable of negotiating a flawless price for an imperfect firm.
Barbara asserts that he is resolving issues without causing tension, and she exits.
Daymond states that he “doesn’t particularly like him, but he likes the concept,” and offers $2.5 million for 17.5%, but wishes to license it out.
Miles asserts that he has distinct strategic goals and is interested in building value via the development of his own line. He believes licensing would jeopardize the firm.
Daymond asserts that for $2.5 million, he could design his own program. Miles responds, “By all means,” and Daymond exits.
Kevin expresses curiosity, but does not wish for him to travel to China. He believes Miles will fail and advises him not to attempt to recreate the wheel.
Kevin offers $2.5 million in loans at a rate of 7% for three years in exchange for a 2.5% stake in the business. Mark believes this is a terrific bargain. According to Miles, this is the fairest offer he’s ever heard from Kevin!
Mark asserts that visiting China is a mistake. Miles requires someone who is familiar with that piece; he is no longer present.
When Kevin pursues Miles, he states that he is looking for equity partners rather than loans, and hence declines.
Sacca asserts that he believes Miles lacks trust in his business. “You’re a walking dead shirt,” Kevin remarks. He has departed. Miles eventually exits the pitch without securing a deal.
What Happened to MTailor after Shark Tank?
Miles Penn opted to follow his ambition of maintaining his App product after the sale crashed in the Shark Tank investors.
The firm has continued to operate following the show’s airing. As of May 2021, the firm generates $4.4 million in annual revenue and is valued at over $15 million.
Competitors of MTailor
The company main competitors are; Threadless, Shoptagr, Damartex and Missygow.
Net Worth of MTailor
The company was valued at $15 million during the pitch, in 2021 the company has a net worth of $25 million.
MTailor FAQs
What is MTailor?
MTailor is an online store that allows individuals to receive custom made shirts in a matter of minutes.
Who owns MTailor?
Miles Penn is the Co-Founder and CEO at MTailor.
What is his offer on Shark Tank?
Miles was seeking $2.5 million for 10% of the business at valuation of $25 million.
Did he get the deal?
No, but he ultimately decided not to pursue his business further.
Who are their competitors?
The company main competitors are; Threadless, Shoptagr, Damartex and Missygow.
How accurate is MTailor?
MTailor is so confident in their algorithm that they promise a flawless fit and openly boast that it is 20% more accurate than a professional tailor.
What inspired the owner to start the company?
The inspiration for starting MTailor stemmed from frustration with ordering apparel online.
Where is MTailor located?
They are headquartered in San Francisco and supported by some incredible investors, including Khosla Ventures, Y Combinatory, and some of Silicon Valley’s most seasoned angel investors.
How much do MTailor jeans cost?
With pricing ranging from $79 to $119, MTailor is on the expensive side and a little more than the average male is willing to pay.
However, the fact that it is personalized and there is a guarantee of a great fit makes it more desirable.
How do I return MTailor?
Refundable, if anyone desire to return an item, please send an email to [email protected] telling them of the item.
After receiving the item, we may give clients a pre-paid return label and offer a complete refund.
How long does it take to get a suit from MTailor?
Custom made MTailor garment is projected to take between 5 and 6 weeks to deliver.
In exceptional circumstances, shipping may be delayed due to factors beyond their control, such as fabric availability or natural catastrophes. In certain instances, delivery may take a little longer.
What is the net worth of Miles Penn?
His net worth is unknown.
