Kaeya Majmundar got her first taste of entrepreneurship at 19 when she created the BZBox, a better moving box that didn't break at the bottom. That product got her in front of millions after securing a spot on ABC's "Shark Tank," where she landed a handshake deal with Lori Greiner.
The investment with Greiner ultimately fell through, but the exposure from the show made the BZBox a viral sensation with boxes flying off the shelves, and Majmundar's been chasing that viral high ever since.
Her next creation was the ZipTank, a tank top that could be zipped into a bag that caught the eye of Chicago rapper Vic Mensa, who wore one at Coachella. Majmundar also worked with former Chicago Bull Derrick Rose on a line of ZipTanks that featured his son, and she appeared on the Steve Harvey Show in 2016 with a ZipTank featuring the Chicago comedian.
Every time a celebrity boosted her product, sales soared. But that success proved to be fleeting. Real growth was always driven by regular, ordinary customers posting about her products to their friends on social media.
"[My products] would become these overnight viral sensations," she said. "A wave would come from celebrities, but the sustainable wave would come from people."
That roughly 10 years of experience of ideating on products, riding the viral wave and understanding how engaged online customers can drive sales has shaped her next startup Swaypay, a Chicago-based app that gives you cash back for posting on TikTok.
The app is simple: Swaypay automatically identifies when you've bought something from one of its partnering brands — like Nike, Champion or McDonald's — and gives you cash back when you post about the product on TikTok. The amount you get back depends on a number of factors, like the performance of the post and the type of business you're promoting, but Majmundar said it can range from $2 up to $100. The average payout is around $15, she said, with some users earning back 100% of the cost of the product.
"Some people are just earning coffee money," she said. "Some people we're sending 1099s to because they are earning so much money with Swaypay."
Swaypay has other, larger built-in payout models, too. Brands can offer users "viral bounty incentives" if a post goes completely viral (think something along the lines of the Ocean Spray skateboarder) where users can earn thousands. The app can also license videos back to brands to use in their own marketing. If a brand buys a Swaypay video, the user gets a piece of the transaction.
The startup believes it's pioneering a new fintech category: cash back for social media posts. And to help it grow, Swaypay just raised $4.2 million led by BBG Ventures and Anthemis, along with Steve Case's Revolution, Not Boring Capital, Tribe Capital, TikTok head of brand partnerships Nikki Bogopolskaya and others.
Majmundar said 10,000 people have signed up for a Swaypay account, and its users have so far made TikTok videos that have been watched more than 50 million times since last November. Copycats have already come out of the woodwork, Majmundar said, with at least five similar products launching in recent weeks. It's a testament to the industry's potential, she said, but she admitted the startup may need to raise additional funds to stay out ahead of the growing market.
Swaypay is eyeing additional social media platforms down the road, Majmundar said, but it's planning to focus primarily on TikTok for now.
Majmundar said Swaypay has flipped the traditional influencer marketing model, where the influencer dictates the creative direction for the brand. It allows TikTok users to connect with their audience is a more authentic way, and provides brands with marketing strategies they otherwise wouldn't have thought of. It's a strategy that has required some convincing for brands, Majmundar admits, as they're reluctant to lose control of the message. But the startup believes this is the way Gen Z wants to shop and connect with brands they enjoy.
"In the past, brands decided how they were going to present themselves. Now that's all in reverse, because Gen Zs are flipping it," she said. "It's taking the power from the platforms to the people."
