Toymail was an innovative product designed to bring screen-free communication to children in a fun and safe way. Through Wi-Fi-enabled plush toys called Talkies, kids could send and receive voice messages with approved contacts. The toys also included features like voice filters, sleep sounds, and a subscription service for extra content, making them engaging for children aged 3 to 8.
Founded by Gauri Nanda and Audrey Hill, Toymail gained early attention through a successful Kickstarter campaign and partnerships with major investors like Amazon and Verizon. Despite initial hype and a Shark Tank appearance, the company eventually faced challenges that led to bankruptcy.
What Is Toymail?
Toymail was a screen-free communication toy designed for children aged 3 to 8. The main product, called Talkies, was a Wi-Fi-enabled plush toy that allowed kids to send and receive voice messages with parents, family, or approved friends through a companion app. It offered voice filters, sleep sounds, and extra downloadable content via a subscription service, making it interactive and safe for young users.
Retailing for around $59.99, Toymail was available both online and in physical stores. The toy provided a safe alternative to smartphones and tablets, giving children a way to stay connected while limiting screen time. Its combination of technology and play made it a unique product in the children’s tech market.
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Who Are the Founders of Toymail?
Toymail was co-founded by Gauri Nanda and Audrey Hill in 2013. Gauri Nanda is best known for inventing Clocky, the alarm clock on wheels that gained national recognition. Her experience in creating innovative consumer products helped establish credibility for Toymail from the start.
Audrey Hill joined Gauri to help bring Toymail to market, combining her expertise in product development and entrepreneurship. Together, they focused on creating a safe, screen-free communication solution for children, blending technology with playful, engaging designs.
The Story Behind Toymail
The idea for Toymail came from the founders’ desire to create a screen-free way for children to communicate with family and friends. Gauri Nanda noticed that children were increasingly spending time on smartphones and tablets, which limited safe, interactive communication. She envisioned a toy that could combine play, technology, and parental control in one product.
In 2013, Gauri and Audrey launched a Kickstarter campaign to fund production, raising $83,341. The campaign’s success demonstrated strong interest from parents and investors, validating the concept. Soon after, the company secured $1.6 million in seed funding from prominent backers including Amazon, Verizon, and Y Combinator, setting the stage for growth.
The founders continued to refine Toymail’s design, introducing Talkies plush toys with Wi-Fi connectivity and additional features like voice filters, sleep sounds, and subscription content. Their goal was to make communication fun, safe, and educational for children while offering parents peace of mind.
Toymail’s Shark Tank Appearance
Toymail appeared on Season 8, Episode 17 of Shark Tank, where Gauri Nanda pitched the product as a screen-free communication solution for kids. She requested $250,000 for 2.5% equity, which valued the company at $10 million, and demonstrated the toy’s voice messaging features along with her previous invention, Clocky, to establish credibility.
The Sharks were impressed with the concept and its potential in the children’s tech market. Lori Greiner and Chris Sacca offered $600,000 for 5% equity, valuing the company at $12 million. Gauri accepted the deal on-air, marking a major milestone for Toymail’s visibility and investor interest.
Sharks’ Reactions and Deal Outcome
The Sharks were intrigued by Toymail’s innovative approach to safe communication for children. Lori Greiner emphasized the toy’s potential for retail success through her network, while Chris Sacca highlighted its unique position in the growing connected toy market. Many saw the product as both fun and educational, with strong appeal to parents concerned about screen time.
Despite the on-air deal being accepted, the agreement never closed. Post-show due diligence revealed concerns about the company’s valuation, production costs, and scalability, preventing the Shark Tank investment from moving forward. Without this funding, Toymail had to rely on existing resources for further growth.
Post-Shark Tank Growth and Expansion
Following the Shark Tank episode, Toymail experienced a boost in website traffic, social media engagement, and sales. The company expanded its lineup, introducing new plush designs and launching Toymail Cloud, a platform for additional communication and learning features.
Partnerships with Amazon and other retailers improved visibility, and parents appreciated the safe communication features that limited messaging to approved contacts. Initial sales projections aimed for $2.5 million in the year following Shark Tank and $10 million the next year, but actual growth fell short due to high production costs and scaling difficulties.
Challenges Faced by Toymail
Toymail faced several operational and market challenges that affected its growth trajectory:
- High Production Costs: Each toy cost around $20 to produce, making profit margins tight. Efforts to reduce costs to $10 were unsuccessful.
- Intense Market Competition: Other connected toys and tech-enabled products increased market saturation.
- Scaling Difficulties: Retail expansion faced high slotting fees and inventory management challenges.
- Overreliance on Corporations: Partnerships with large retailers reduced the founders’ control over operations.
- Funding Issues: Post-2017, the company failed to secure additional funding for international growth or new products.
- Shark Tank Valuation Concerns: The high $12 million valuation deterred other investors from joining.
Shutdown and Bankruptcy
In November 2018, Toymail filed for bankruptcy due to unsustainable sales and high operational costs. Despite early successes and partnerships with major retailers, the company struggled to maintain profitability, leading to the closure of its operations.
Following the shutdown, the website went offline and social media activity stopped in 2019. As of 2025, Toymail remains out of business, with no active employees, funding, or plans for revival, marking the end of its journey in the children’s tech market.
Toymail Net Worth
Toymail’s financial history shows a significant contrast between projected and actual value:
- Pre-Shark Tank Valuation: $10 million
- Proposed Shark Tank Deal: $12 million valuation
- Hypothetical 2025 Value (with 10% annual growth): ~$19.3 million
- Actual 2025 Net Worth: $0
Reasons for Failure
Toymail’s closure was the result of multiple challenges that made it impossible to sustain the business long-term. Despite a strong concept and initial hype, operational and market factors led to its downfall.
- High Production Costs: Each toy cost around $20 to produce, limiting profit margins.
- Intense Competition: Other connected toys and tech-enabled products crowded the market.
- Scaling Challenges: Expanding into retail required high fees and complex inventory management.
- Overvaluation: The high Shark Tank valuation discouraged additional investors.
- Limited Funding Post-2017: The company failed to secure capital for growth or international expansion.
- Dependence on Large Retailers: Reliance on partners reduced founder control and flexibility.
Lessons for Future Entrepreneurs
Toymail’s story teaches important lessons for anyone starting a business. A good idea alone is not enough; planning and careful management are needed to succeed.
- Check Costs: Make sure it’s not too expensive to make your product.
- Watch Competitors: Be ready for other companies copying or competing with your idea.
- Plan Growth: Expanding to stores or new markets needs careful planning.
- Use Investment Wisely: High company value can make it hard to get new investors.
- Think Long-Term: Early success does not mean the business will last.
- Keep Customers Safe: Especially for kids’ products, trust and safety are very important.
Frequently Asked Questions
Toymail was a Wi-Fi-enabled plush toy that allowed children to send and receive voice messages safely with approved contacts.
Toymail was founded by Gauri Nanda and Audrey Hill in 2013.
Yes, Gauri Nanda accepted an offer from Lori Greiner and Chris Sacca, but the deal never closed.
The company was valued at $10 million pre-Shark Tank and would have reached $12 million with the Shark Tank deal.
As of 2025, Toymail is out of business, and its net worth is $0.
Final Thoughts
Toymail was an innovative and fun product that offered screen-free communication for children. Despite early success, Shark Tank exposure, and partnerships with major retailers, the company faced high costs, competition, and growth challenges. These issues led to its bankruptcy in 2018. As of 2025, Toymail’s net worth is $0, but it remains an inspiring example of creativity and entrepreneurship in the children’s tech market.