The co-founders of PupBox know how to close a deal. Once Ariel and Ben Zvaifler handed Robert Herjavec a fluffy yellow puppy during their Shark Tank pitch in November of 2016, the celebrity investor had no choice but to make them an offer.
Since then, PupBox's success has continued. On Wednesday, the subscription box service for dogs announced that it was acquired by Petco, and that the PupBox team would join the pet supply company. As part of the acquisition, Petco and PupBox will launch a holiday box filled with toys, treats, and holiday training tips. The terms of the deal were not disclosed.
"Pets are absolutely part of our families and we want to make sure every fur-baby has a present to open along with the rest of their loved ones this year," Ben said in a statement.
Ariel and Ben launched the San Diego-based company in 2014 with the goal of creating monthly, personalized boxes for dogs. PupBox collects information about the pooch--like breed, age and dietary restrictions--and shapes each box to the dog's developmental stage to help owners train and care for their pet.
The co-founders got the idea for their company after adopting an 8-week-old Goldendoodle named Maggie. They struggled to find products and guidance on how to raise her, and used their combined professional experience to launch PupBox. Ben, who is also PupBox's CEO, had marketing experience from his previous startup job. Ariel had spent her career in the pet industry.
A one-month box costs $39, but prices drop with longer subscription commitments. PupBox also sells adult dog boxes and accessories like leashes and a treat tote. In its first year of business, the company made $275,000 in sales. That figure grew to $700,000 in 2016 and the co-founders told Inc. they expect to see $2 million in sales for this year.
When the couple appeared on Shark Tank, Herjavec offered 15 percent equity in exchange for $250,000. "It's the American Dream come to life," Herjavec, a dog lover, told Inc. in an email. "I'm confident Pup Box is in great hands with Petco and look forward to seeing how they partner with Ben and Ariel to continue growing this amazing brand."