Dad raises $2 million dollar through Crowdfunding for smart travel jacket

Dad raises $2 million in crowdfunding program

If you’ve ever found yourself in the thick of winter hoping for a jacket that could hold everything you could possibly need, its quite likely you know how Hiral Sanghavi felt. Sanghvi, a student at Northwestern University, along with his wife, Yoganshi Shah, found himself in need of a travel jacket with numerous features, including a built-in neck pillow, gloves, earphone holders, masks and even a drink pocket when he decided to take to Kickstarter to help make his idea a reality. To this end, he launched a campaign in July of 2015, with the short-term goal of $20,000 to help get BauBax off the ground and running. Not anticipating a ton of support, he posted another campaign on Indiegogo, hoping that together, Kickstarter and Indiegogo would help him generate enough funding to manufacture his travel jacket.

              Sanghvi, however, saw an immense reaction to his idea. The first wave of kickstarter funding saw BauBax, the company founded by Sanghvi, receive over $9 million in a little less than 60 days. On Indiegogo, the same idea managed to generate over $2 million. This, while being a blessing for Sanghvi and Shah, created some logistical issues for Baubax.

              BauBax assured backers that they would be ready to ship by November 2015, but their partners, Rakuten and Floship were woefully unprepared to meet the demand. This left a lot of orders being delayed, forcing Sanghvi to terminate his agreement with these companies and find alternative options to ship out the BauBax jackets. This, in turn, pushed the company a few months off-schedule, upsetting numerous backers. Moreover, many jackets found themselves on e-commerce sites courtesy of warehouses that had stocked up on BauBax’s all-in-one jacket, further infuriating crowdfunders!

              BauBax, however, managed to turn around their initial drought of success. After addressing the shipping issues, BauBax managed to meet all their orders and have shipped over 200,000 jackets to customers in over 150 countries worldwide. With each unit ranging between $150-$200, BauBax has generated over $25 million in total revenue, with Kickstarter, Indiegogo, e-commerce sites and retail outlets being their primary sources of business. Today, the company has established warehouses all over the world to avoid any logistical issues moving forward and has moved back to crowdfunding under the leadership of Mr. Sanghvi. They now maintain multiple kickstarter campaigns to help propel them forward and make new developments in the field of smart clothing.

              In 2016, they launched a campaign to help develop a jacket that could wirelessly charge smartphones and still maintain their initial kickstarter page to help fund the growth of the BauBax travel jacket. Additionally, another campaign is aimed at adding more features and functionality to the travel jacket – accurately named BauBax 2, which has seen over $4 million in total revenue, making them one of the most successful clothing outfits to be crowdfunded.

Crowdfunding allowed us to build our dreams without giving away equity.

To date, the company has sold more than 200,000 BauBax jackets worldwide — and they are not planning to stop there. For the past six months, Sanghavi and his team have been working on the next iteration of the BauBax travel jacket. This one has 25 features in it.

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