Imdad Hussain
In an era where digital screens dominate children’s playtime, two young entrepreneurs from Pune, India, have embarked on a mission to revive the essence of hands-on learning and real-world play. Yash Thombare, 22, and Vedang Nalawade, 21, co-founded Clapstore Toys to address the growing concern about increased screen time among children, especially in the aftermath of the COVID-19 pandemic. Their innovative approach focuses on creating engaging, educational toys that not only captivate young minds but also promote essential developmental skills. Their recent appearance on Shark Tank India brought their vision into the spotlight, showcasing their dedication to transforming the landscape of children’s play in India.
The Genesis of Clapstore Toys
The story of Clapstore Toys began in 2021 when Yash and Vedang observed a troubling trend: children were increasingly glued to screens, leading to concerns about their cognitive and physical development. Yash, who pursued a Bachelor of Business Administration (BBA) before the pandemic, and Vedang, a psychology student, combined their expertise to tackle this issue head-on. Recognizing the detrimental effects of excessive screen time, they envisioned a solution that would reintroduce tactile and sensory experiences into children’s daily routines.
Their initial venture into entrepreneurship involved running a dropshipping business for 1.5 years, which provided them with valuable insights into market dynamics and consumer behavior. This experience laid the foundation for their next endeavor: creating toys that would serve as a meaningful alternative to digital entertainment.
Introducing Portable Busy Boards
Clapstore Toys’ flagship product is the ‘Portable Busy Board,’ a unique blend of wood and electronic components designed to engage children aged 6 months to 6 years. These boards are meticulously crafted to trigger positive stimulation and enhance fine motor skills, sensory development, and hand-eye coordination. By incorporating elements that children can touch, move, and manipulate, the busy boards offer a hands-on learning experience that is both fun and educational.
The concept of busy boards is not entirely new. However, Clapstore Toys has innovated by making them portable and incorporating electronic features that add an extra layer of engagement. This portability ensures that children can enjoy these enriching activities anywhere, whether at home, during travel, or in outdoor settings.
Market Reception and Growth Trajectory
Since launching its prototype in January 2023, Clapstore Toys has experienced remarkable growth. By October 2024, they had garnered a customer base exceeding 50,000, reflecting the strong demand for screen-free educational toys. Their annual sales figures underscore this upward trajectory:
- FY 2023-24: ₹2.54 Crores
- FY 2024-25: (Till October): ₹2.4 Crores
Notably, their monthly sales have shown significant increases, with October 2024 sales reaching ₹62 lakhs and a projected ₹70 lakhs for November 2024. The company aims to achieve total sales of ₹6 crores for FY 2024-25, with a projected EBITDA of 18% and a net margin between 2-7%.
Product Range and Pricing
Clapstore Toys offers a diverse range of busy boards to cater to various age groups and developmental needs. Their products are priced between ₹500 and ₹1,800, making them accessible to a broad spectrum of consumers. Some of their popular offerings include:
Montessori Mini Switch Busy Board – V4:
Priced at ₹499, this compact board is designed for younger children, featuring simple switches and buttons to enhance fine motor skills.
Rhyme House Busy Board:
At ₹1,499, this board incorporates elements that encourage language development through nursery rhymes and interactive components.
The thoughtful design and affordable pricing have made these products a favorite among parents seeking quality educational toys.
Manufacturing and Distribution
To maintain quality and meet growing demand, Clapstore Toys established an in-house assembly unit in March 2024, with a capital expenditure of ₹15-₹20 lakhs. This facility enables them to launch new products within a week, ensuring agility in responding to market trends and customer feedback.
Their products are available across multiple channels, including their own website, major e-commerce platforms like Amazon, Flipkart, and FirstCry, as well as quick commerce platforms. The distribution channel split is as follows:
- Amazon: 50%
- Own Website: 40%
- Others: 10%
This multi-channel approach ensures wide accessibility and convenience for customers nationwide.
Financial Overview and Unit Economics
Clapstore Toys has demonstrated sound financial management, with a clear breakdown of their unit economics:
- Cost of Goods Sold (COGS): 35%
- Logistics & Packaging: 10%
- Marketing: 24%
- Fixed Expenses: 13%
- EBITDA: 18%
This financial structure highlights their focus on maintaining healthy profit margins while investing adequately in marketing and infrastructure to drive growth.
Marketing Strategy and Brand Building
Understanding the power of digital marketing, Clapstore Toys collaborates with 30-40 influencers monthly, utilizing their content as ad creatives. This strategy has amplified their brand visibility and credibility among target audiences.
Their mission-driven approach, encapsulated in the slogan “More play, less screen,” resonates with parents concerned about the impact of excessive screen time on their children. By emphasizing hands-on learning and real play, they have positioned themselves as a trusted brand in the educational toy segment.
Shark Tank India Experience
Clapstore Toys‘ appearance on Shark Tank India marked a significant milestone in their entrepreneurial journey. Seeking an investment of ₹80 lakhs for 4% equity, valuing the company at ₹20 crores, Yash and Vedang presented their vision and achievements to the panel of esteemed investors.
Their pitch resonated with the Sharks, leading to a competitive negotiation. Ultimately, all five Sharks- Peyush Bansal, Anupam Mittal, Vineeta Singh, Kunal Bahl, and Aman Gupta—collaborated to offer ₹1 crore for 10% equity, effectively valuing the company at ₹10 crores. This unanimous endorsement not only provided the necessary capital for expansion but also validated the founders’ mission and business model.
Future Prospects and Expansion Plans
With the strategic investment secured from the Sharks, Clapstore Toys is poised for significant growth and development. The company has outlined several key initiatives to capitalize on their current momentum and expand their market presence:
1. Manufacturing Capacity Expansion:
To meet the increasing demand for its products, Clapstore Toys plans to scale up its manufacturing capabilities. This expansion will enable them to increase production volumes, reduce lead times, and maintain product quality, ensuring timely delivery to their growing customer base.
2. Enhancement of Existing Sales Channels:
The company intends to strengthen its presence across current distribution channels, including its own website, major e-commerce platforms like Amazon, Flipkart, and FirstCry, as well as quick commerce platforms. By optimizing these channels, they aim to improve customer reach and satisfaction.
3. Development of New Products:
Leveraging its in-house assembly unit, Clapstore Toys plans to introduce innovative products that align with its mission of promoting screen-free, educational play. Their ability to launch new products within a week positions them to respond swiftly to market trends and customer feedback.
4. Enhanced Marketing and Brand Building:
The company will continue to invest in marketing strategies, including collaborations with influencers and the creation of engaging social media content. These efforts are designed to increase brand visibility, attract new customers, and reinforce their commitment to reducing children’s screen time.
5. Geographical Expansion:
While currently focusing on the Indian market, Clapstore Toys has plans to explore international markets in the future. This expansion will involve market research, localization of products, and establishing distribution networks to cater to a global audience.
6. Educational Collaborations:
Recognizing the educational value of their products, the company aims to collaborate with educational institutions and child development experts. These partnerships will help integrate their toys into early childhood education programs, further promoting the benefits of hands-on, screen-free learning.
By executing these strategic initiatives, Clapstore Toys is well-positioned to lead a movement towards healthier, more engaging play experiences for children, ultimately contributing to their cognitive and physical development.
Conclusion
Clapstore Toys exemplifies the power of innovation and a mission-driven approach to addressing contemporary challenges. By offering screen-free, educational toys, they are not only providing children with enriching play experiences but also alleviating parental concerns about excessive screen time. With strategic investments, a robust product lineup, and a clear vision for the future, Clapstore Toys is poised to make a lasting impact on the toy industry and the developmental journey of countless children.