Imdad Hussain
In today’s fast-paced world, where creativity and scientific aptitude are essential for success, FundooLabs is making a remarkable impact on the next generation. Founded by Naitik Chotai from Vadodara, Gujarat, FundooLabs has emerged as a groundbreaking brand that creates chemistry-based DIY scientific and sensory toys. Designed for children between 4 and 14 years of age, the brand’s products are more than just toys—they are tools that foster creativity, critical thinking, scientific understanding, and sensory motor skills. With an impressive presence in over 3,000 retail stores and a staggering three-year average annual growth rate of 200%, FundooLabs is transforming how children interact with science.
In this article, we delve into the inspiring journey of FundooLabs—from its humble beginnings to its meteoric rise, all the while dissecting its financial performance, unit economics, and the pivotal Shark Tank India moment that catapulted its reputation. We will explore the personal story of founder Naitik Chotai, the evolution of the product lineup, and the intricate details behind the brand’s success.
The Journey Begins: A Glimpse into Naitik Chotai’s World
Naitik Chotai’s story is one of early exposure, responsibility, and passion. Born and raised in Vadodara, Gujarat, Naitik grew up in a family that ran a wholesale business. From as early as class 1, he was no stranger to the hustle and bustle of the family shop. By the time he reached class 12, Naitik was already adept at managing the business in his father’s absence. This early immersion in commerce not only instilled in him a strong work ethic but also nurtured an entrepreneurial spirit that would shape his future.
After excelling academically, Naitik pursued an engineering degree followed by a master’s from L.D. College of Engineering in Ahmedabad. Despite his academic and professional accomplishments, one dream remained unfulfilled—building something of his own. This dream began to take shape when he noticed the innate curiosity and scientific aptitude of his daughter, Priyanshi Chotai, who at 14 had already demonstrated an extraordinary talent for science. Inspired by her passion, Naitik set out to make science accessible, engaging, and fun for children.
From Workshops to a Full-Fledged Brand
The journey of FundooLabs began in 2017 when Naitik started organizing scientific workshops for kids. These workshops were designed to bridge the gap between theoretical knowledge and practical application, a gap he had observed time and again among young aspiring engineers. The workshops were a hit, and soon, Naitik began collaborating with schools to bring science to life in classrooms.
By 2020, FundooLabs had evolved to include its very own laboratory where children could experiment and explore under guided supervision. However, the onset of the COVID-19 pandemic in 2020 forced schools to shut their doors, compelling Naitik to rethink the traditional workshop model. Recognizing the opportunity to reach children even during lockdowns, he pivoted towards creating DIY science kits, an idea that would revolutionize the way kids learned science at home.
It was during this time that FundooLabs introduced its first two flagship products: the Candy Slime Kit and the Galaxy Slime Kit. Naitik produced 10,000 pieces of each kit, amounting to 20,000 kits sold within just 1.5 years. This bold move not only kept young minds engaged during the pandemic but also laid a strong foundation for FundooLabs’ future product expansion.
The Unique World of FundooLabs Products
FundooLabs is not your typical toy brand. It specializes in creating innovative, chemistry-based DIY kits that allow children to experiment and play while learning fundamental scientific principles. The product range spans several exciting categories, including:
1. Slime Making Kits
- Fruit Jelly Slime: Praised for its non-sticky, jiggly texture and pleasant fragrance.
- Mint Chocolate Butter Slime: Known for its remarkable stretchability, smooth consistency, and delightful aroma.
- Funfetti Cake Slime: Features a thick, glossy finish that is both tactile and fragrant.
2. Squishy Making Kit
A fun kit that lets kids create their own squishy toys—perfect for sensory play and creative expression.
3. Snow Making Kit
A kit designed to simulate the wonder of snow, encouraging imaginative play and exploration of scientific concepts.
4. Aqua Squish Ocean World Kit
An immersive product that brings the underwater world to life with tactile and visually engaging elements.
Unlike most slimes sold in India, which are often imported from China at a price range of ₹40–₹50 per ml, FundooLabs positions its products in the premium segment. For example, their first slime product is sold at ₹130 for 165 ml—an indication of the superior quality and innovative features that set FundooLabs apart.
Looking ahead, FundooLabs is preparing to launch new and exciting products such as the Squishy Human Organs Kit, Fizzy Colour Tablets, and the Magic Tree, all aimed at further enhancing children’s scientific curiosity and creative skills.
A Closer Look at the Numbers
At the heart of FundooLabs’ success lies a strong financial foundation that has seen rapid growth over the past few years. The brand’s revenue performance, unit economics, and capital structure highlight its robust business model.
FundooLabs has witnessed impressive growth in both its own product sales and overall sales. Here’s a look at the financial performance over recent fiscal years:
FY 2021-22
- Own Products Sales:* ₹5 Lakhs
- Total Sales: ₹1.16 Crores
FY 2022-23
- Own Products Sales: ₹50 Lakhs
- Total Sales: ₹1.34 Crores
FY 2023-24
- Own Products Sales: ₹1.5 Crores
- Total Sales: ₹1.98 Crores
FY 2024-25 (Till September)
- Own Products Sales: ₹1.5 Crores
- Total Sales: ₹1.5 Crores
These numbers illustrate a clear upward trend, with own product sales skyrocketing from a modest ₹5 Lakhs to ₹1.5 Crores over a span of three fiscal years. The overall total sales have similarly grown, underscoring the increasing market acceptance and popularity of FundooLabs products.
Unit Economics: A Snapshot of Efficiency
Understanding the unit economics is essential to appreciate the profitability and operational efficiency of FundooLabs. The cost breakdown is as follows:
- COGS (Cost of Goods Sold): 48%
- Operational Expenses: 21%
- Sales & Marketing: 9%
- Freight: 3%
- Others: 1%
With an EBITDA margin of 18%, FundooLabs maintains a healthy balance between cost management and revenue generation. This efficiency, combined with a robust sales performance, ensures that the company remains profitable across all its sales channels.
Capital Structure and Investment
FundooLabs has been 100% bootstrapped, a testament to Naitik’s commitment and confidence in his vision. The capital structure comprises:
- Total Personal Investment: ₹60 Lakhs
- Family Investment: ₹30 Lakhs
- CGTMSE Loan: ₹50 Lakhs
(CGTMSE stands for Credit Guarantee Fund Trust for Micro and Small Enterprises)
Distribution, Channel Strategy, and Market Reach
FundooLabs’ products are available across 25 distribution channels and are stocked in over 3,000 retail stores, ensuring widespread availability. The channel split is as follows:
- General Trade:48%
- Modern Trade: 36%
- Quick Commerce Platforms: 12%
- Own Website: 4%
This diversified channel strategy has not only boosted sales but also ensured profitability across all sales streams. Payment cycles are efficient with Modern Trade payments clearing within 1 to 1.5 months, while General Trade takes slightly longer at 2 to 3 months. Such efficient cash flow management is crucial for maintaining the company’s operational rhythm and growth trajectory.
The Shark Tank India Movement: A Game-Changer
No entrepreneurial journey is complete without a defining moment, and for FundooLabs, that moment came on the set of Shark Tank India. The brand’s innovative approach and impressive growth metrics caught the attention of the panel. Initially, FundooLabs made an ask of ₹60 Lakhs for 4% equity—an offer that valued the company at ₹15 Crores.
After thorough deliberations and negotiations, the deal that was ultimately closed involved a final offer from investors Aman and Anupam:
- Final Offer: ₹66 Lakhs for 7% equity.
This Shark Tank India deal was more than just an infusion of capital. It validated the brand’s business model, provided vital exposure, and opened doors to strategic opportunities that further enhanced FundooLabs’ market presence. In a memorable and humorous moment on the show, Anupam quipped, “You are a real Santa Clause without a beard,” highlighting Naitik’s warm, approachable persona and the magical, innovative spirit behind the brand.
Behind the Scenes: The Making of FundooLabs
Every great brand has a compelling behind-the-scenes story, and FundooLabs is no exception. Naitik Chotai’s journey from managing a family wholesale business to spearheading an innovative toy brand is steeped in determination, resilience, and passion.
Growing up in a business environment, Naitik learned the intricacies of commerce early on. His formative years at the family shop taught him the importance of customer satisfaction, cost control, and innovation—lessons that he would later apply to FundooLabs. His academic pursuits in engineering and further specialization at L.D. College of Engineering in Ahmedabad equipped him with the technical knowledge and analytical skills required to bring scientific concepts to life in a fun and engaging way.
The inception of FundooLabs was directly inspired by a personal observation: young children, especially those with budding engineering minds, often lack practical know-how. Naitik recognized that traditional schooling was insufficient in imparting the experiential learning that science deserves. With a desire to bridge this gap, he began hosting workshops in 2017. These sessions were designed not just to teach scientific theories, but to enable children to experiment, explore, and learn by doing.
The success of the workshops soon paved the way for collaborations with schools and the establishment of a dedicated laboratory by 2020–2021. However, when COVID-19 forced schools to close their doors, Naitik saw an opportunity. He pivoted to creating DIY slime kits—a decision that would prove to be a masterstroke. Launching the Candy Slime Kit and the Galaxy Slime Kit during the pandemic, he produced a total of 20,000 kits in just 1.5 years. This strategic move not only kept children engaged during a difficult time but also demonstrated the brand’s agility and innovative spirit.
Following the success of the initial kits, FundooLabs expanded its portfolio by launching 14 additional products. Each new product was carefully designed to improve creativity, critical thinking, scientific aptitude, and sensory motor skills. The continued positive response from both children and parents has only reinforced the belief that FundooLabs is onto something truly special.
Financial Discipline and the Road Ahead
FundooLabs’ impressive growth can be attributed to its strong focus on maintaining healthy unit economics and financial discipline. With a breakdown of costs that keeps the COGS at 48%, operational expenses at 21%, and sales & marketing efforts at 9%, the company achieves an EBITDA margin of 18%. This profitability across various channels has allowed FundooLabs to not only sustain its operations but also plan for future expansion.
The company’s capital structure is equally robust. With personal investments of ₹60 Lakhs, additional family investments of ₹30 Lakhs, and a CGTMSE loan of ₹50 Lakhs, FundooLabs has been able to bootstrap its way to success. This careful management of capital, combined with strategic external validation from platforms like Shark Tank India, has set the stage for an exciting future.
Conclusion
FundooLabs is much more than a toy company—it is a movement dedicated to transforming the way children learn and interact with science. From its inception in 2017 as a series of interactive scientific workshops to its evolution into a dynamic brand with a diverse range of DIY kits, FundooLabs has consistently demonstrated that learning can be both fun and profoundly impactful.
The brand’s financial performance speaks volumes: from modest beginnings with its own product sales of just ₹5 Lakhs in FY 2021-22 to achieving ₹1.5 Crores in subsequent years, FundooLabs has experienced explosive growth. Its unit economics, characterized by a balanced cost structure and an EBITDA margin of 18%, underscore a commitment to sustainable and profitable expansion.