Luna Magic Shark Tank Update: Tale Of Luna Magic’s Success After Shark Tank
Luna Magic is an independent cosmetic brand that appeared on the reality show called Shark Tank. Today, we’ll walk through the Luna Magic Shark Tank update and their post-show growth journey.
The sisters, aka co-founders of Luna Magic, found that there were not many products for different skin tones. Many brands only had products for lighter skin. This is why the sisters started Luna Magic for Latina skin.
However, they also need investors to thrive and build a secure place in the online market. Thus, they joined Shark Tank. But how did they get a deal in the show? Is the brand profitable now? Read on to find out.
Luna Magic Shark Tank Profile
Take a quick glance at the update of Luna Magic after Shark Tank from the following table:
| Company name | Luna Magic |
| Founded | 2019 |
| Founders | Shaira Frias and Mabel Frias |
| Headquarter | Los Angeles, California, United States |
| Purpose | Quality makeup for Latino women at affordable prices |
| Asked for | $200,000 in exchange for a 10% equity |
| Final Deal | A credit line of $250,000 in exchange for a 30% equity |
| Shark | Barbara Corcoran |
| Appearance Episode Number in Shark Tank | Episode 10, Season 12 |
| Air Date | January 15, 2021 |
| Business Status | In business |
| Net Worth | $1.5 Million |
| Annual Sales Revenue | $1.7 Million |
| Luna Magic Website | Luna Magic Beauty |
| Amazon | Buy Now |
| Watch the episode on | Amazon Prime |
How Was Luna Magic Before Shark Tank?
Two sisters from the Frias family, Shaira and Mabel, started a journey of affordable cosmetic brands for African-American and Latina women in 2019. They named the brand after their mother, who passed away during their business planning stage.
Luna Magic Beauty was a small but growing makeup brand before the Shark Tank. They had a solid online presence through their website.
In 2020, Luna Magic was awarded a Glossier Grant, which is given to Black-owned beauty brands. This award was given to only 16 brands out of 3000 applicants.
However, despite its early success, Luna Magic was facing some challenges. The sisters struggled to keep up with demand and needed to expand their production capacity.
They also needed help with marketing and distribution in order to reach a wider audience. Hence, the sisters decided to participate in Shark Tank to seek investors.
How Did Luna Magic Get A Deal in The Shark Tank Show?
So, when was Luna Magic on Shark Tank? The co-founders of Luna Magic appeared on the reality television series Shark Tank on the ABC network on January 15, 2021. It was season 12, episode 10.
During their pitch, the sisters mentioned that they also offer Spanish and salsa classes to their customers. According to the company, Luna Magic has earned $103K through three sources:
- $16,000 from product sales
- $30,000 from grants
- $57,000 from marketing partnerships
They have sold 300,000 brushes in their subscription package, resulting in a purchase order of $498,000 and a profit of $57,000.
In 2020, the founder mentioned selling only $16,000 worth of products. However, they anticipate selling $1.1 million in the upcoming year due to securing a retail partnership with Walmart.
Then, Luna Magic offered investors to invest $200,000 in exchange for 10% equity.
After hearing about their profit journey and the offering percentage of ownership, investors had different thoughts. Some of them predicted that Luna Magic might drop in the near future, so they backed off.
But Barbara Corcoran liked their story and decided to invest $250,000 as a credit line for a 30% equity. As Luna Magic had only one shark pitched, the sisters accepted Barbara Corcoran’s offer without any negotiations.
What Happened to Luna Magic After Shark Tank?
After the Luna Magic Shark Tank episode, they witnessed a handsome profit in their business as their products began to sell out in a week or two. As a result, they could reduce their product price and attract more attention from consumers.
In addition, they also secured a spot on Amazon along with Walmart after the show, which further boosted their sales. Luna Magic said their main achievement after the show was retail selling in stores.
Initially, they pitched a valuation of $2.5 million, but it was later updated to the company’s valuation from $2 million to $8,333,333.
In short, Luna Magic has been gaining popularity and reaching households nationwide right after the show. Now, they are trying to expand internationally and manufacture more makeup items to boost their profit.
Luna Magic Net Worth in 2023
With the Luna Magic update, their net worth has increased. They appeared on the show in 2021; their net worth in 2022 was $1 million. By 2023, their current net worth has increased to $1.5 million.
Is Luna Magic Profitable Now?
Yes, Luna Magic today is a profitable cosmetic due to multiple reasons. Such as:
- They have a good Instagram audience (over 35.5K followers), generating significant sales.
- The brand has expanded its product offerings through Target, CVS Beauty, Amazon, and Walmart.
- Affordable yet quality makeup products.
We can also see improvement in their net worth with annual sales revenue of $1.7 million.
What We Learn from Luna Magic Today
So, we can witness a significant Luna Magic Shark Tank update. The fast-growing company managed to secure a place in the online market within 2 years. And they didn’t have to deal with heavy debt to create a name in the market.
And the credit goes to ABC’s reality show Shark Tank. Luna Magic’s growth after the show is proof of how the show can help a brand to grow.
