Is Toymail Still in Business? The $600K Shark Tank Deal That Failed to Save It

In a world where kids are growing up with screens in their hands, Toymail felt like a breath of fresh air. Instead of more apps or tablets, this company offered a cuddly plush toy that let children send and receive voice messages, no screens required. The startup appeared on Shark Tank, where founder Gauri Nanda landed a $600,000 deal with Lori Greiner and Chris Sacca. It seemed like the perfect boost to take Toymail mainstream.

But fast-forward to today, and Toymail is nowhere to be found. What happened? Is Toymail still in business in 2025? Let’s uncover the full story behind the rise and fall of this once-promising toy startup.

Is Toymail Still in Business in 2025?

No, Toymail is no longer in business. The company officially shut down operations in late 2018. Its website has gone offline, and all official social media accounts have been inactive since 2019.

After its Shark Tank appearance, Toymail enjoyed a brief period of growth. But despite the exposure and investment, the company struggled to scale, faced funding challenges, and eventually filed for bankruptcy in November 2018.

If you’re searching online to buy a Toymail Talkie, you may find second-hand listings on eBay or other reseller sites, but no official store or customer support exists.

What Went Wrong with Toymail?

Toymail’s downfall wasn’t due to a lack of creativity: the product was smart, fun, and even backed by Amazon. But behind the scenes, there were several issues:

• Equity constraints: Before appearing on Shark Tank, Toymail had raised $1.6 million from investors like Amazon, Verizon, and Y Combinator. This limited the equity Gauri Nanda could offer the sharks, leading some to pass on the deal.
• Hardware is hard: Unlike software startups, Toymail had to deal with manufacturing, logistics, and physical distribution, all of which are expensive and complex.
• Low sales: The product struggled to achieve sufficient sales volume for mass adoption.
• Failed to secure more funding: After the initial buzz, the company struggled to raise further capital, a critical factor for any hardware-based startup.

These challenges created a perfect storm that even Shark Tank funding couldn’t fix.

What Was Toymail and Why Did People Love It?

Toymail was a new kind of communication tool, wrapped in a huggable toy. These Wi-Fi-enabled plushies, called Talkies, allowed kids to send and receive voice messages from approved contacts using a connected app. It was an innovative way to keep families connected while reducing screen time.

Some standout features included:

• Cute characters like Bitsy the Bat, Nunu the Unicorn, and Gory the Shark
• Voice messaging controlled entirely by parents through an app
• Integration with Alexa and Amazon Echo for added functionality
• Add-on services like Sleepie (bedtime sounds), Remindie (audio reminders), and Voicie (fun voice filters)

Parents appreciated the safety and simplicity. Kids adored the characters and the ability to “talk” with family. It wasn’t just a toy, it was a smart communication bridge between generations.

The Shark Tank Moment: What Happened During the Pitch?

Gauri Nanda entered Shark Tank during Season 8, seeking $250,000 for 2.5% equity, valuing her company at $10 million. The sharks were intrigued by the idea, especially since Toymail had already secured investments from Amazon and Verizon totaling $1.6 million.

But not all sharks were thrilled:

• Kevin O’Leary was concerned about the low equity offered and passed.
• Robert Herjavec was concerned about the low equity available.
• Mark Cuban offered $500,000 for 5% equity but was outbid.

Then, Chris Sacca jumped in with an offer: $400,000 for 5% equity. Lori Greiner loved the product and joined the deal. Together, they upped the investment to $600,000 for 5% equity, and Gauri accepted.

It was a major win, on paper.

What Happened After Shark Tank?

After the show aired, Toymail saw a surge in traffic and sales. They:

• Launched new plushies like Chunk the Sloth
• Rolled out the Toymail Cloud platform with fun features for kids
• Partnered with Amazon for broader retail exposure
• Introduced an affordable monthly subscription for extra content
• Integrated with Alexa for hands-free voice commands

The momentum was real, but short-lived.

As the company tried to scale, the costs ballooned. Manufacturing challenges, customer support issues, and new competitors made it hard to keep up. Despite the innovation, Toymail couldn’t grow fast enough to stay afloat.

By the end of 2018, the company filed for bankruptcy.

Where Is Gauri Nanda Now?

After Toymail shut down, Gauri Nanda returned to one of her earlier inventions, Clocky, the alarm clock on wheels that runs away when it rings. Clocky remains available online and has a loyal fanbase.

Today, she continues to work at the intersection of technology and behavior, building quirky, purpose-driven products that challenge how we think about everyday routines.

While Toymail didn’t survive, Gauri’s passion for creative tech lives on.

Lessons from Toymail’s Journey

Toymail’s rise and fall offer key lessons for startup founders and Shark Tank fans:

• A great idea doesn’t guarantee success, especially in the hardware space.
• Shark Tank deals aren’t magic wands; you still need funding, infrastructure, and long-term strategy.
• Equity management matters; giving away too much too early can limit future flexibility.
• Parents loved Toymail, but the market wasn’t ready to support a high-tech plush at scale.

In the end, Toymail was a bold experiment that inspired a new way to think about toys, even if it didn’t survive the business landscape.

Toymail Pitch on Shark Tank

Product	Two-way communication plush toy for kids
Episode	Season 08 Episode 17
Founder	Gauri Nanda
Asked for	$250,000 for 2.5% equity
Company name	Toymail
Final deal	$600,000 for 5% equity
Sharks	Chris Sacca and Lori Greiner
Location	Belleville, 847 Sumpter Rd