Chokhat: A Home Decor Brand Inspired by Nature

Chokhat is a promising home decor brand initiated by Prachi from New Delhi, who presented her venture on Shark Tank India, intending to establish an Indian alternative to IKEA. She proposed a request of ₹50 lakh for a 7% stake, valuing her enterprise at ₹7 crore. The brand is focused on luxury home decor, drawing inspiration from animals and nature, with the goal of making premium decor more reachable for consumers.

Prachi’s Journey with Chokhat

Since launching the business in 2018, Prachi had been managing Chokhat independently but has recently started bringing in new hires. When Anupam Mittal inquired about staff salaries, it came to light that her top employee previously earned ₹15,000 before their termination last month.

Chokhat currently employs two individuals, with one receiving ₹10,000 monthly and another at ₹7,000. Prachi confessed that her hesitation to hire earlier was rooted in the anxiety of needing to let employees go.

Addressing Concerns from the Sharks

Anupam highlighted a critical issue by stating, “On one hand, you say you want to do the best for your employees; on the other hand, you are paying them below minimum wage.” Prachi acknowledged her necessity for guidance in building a robust team and sought financial support to secure a salary runway for her employees for a year.

Peyush Bansal and Aman Gupta raised questions about her growth potential if she remained reluctant to take necessary steps, asking, “How do you know when to hire and when to let someone go?”

Adapting to Challenges

While the sharks were moved by her dedication and drive, her struggles in adapting to the market dynamics were evident. Prachi admitted her experience with selling on Amazon was subpar due to elevated return rates. Vineeta Singh encouraged a reevaluation of her approach, stating, “If you antagonise your customers, you will never reach their homes.”

Future Ambitions for Chokhat

Despite facing obstacles, Prachi shared her ambitious objectives. Following a revenue of ₹4.5 lakh in her second year, she is aiming for ₹1 crore this year, with aspirations to elevate her income to ₹6 crore within three years by diversifying into various home decor categories.

Deal Sealed

The episode culminated with Anupam Mittal and Peyush Bansal proposing ₹30 lakh for a 10% equity stake, accompanied by ₹20 lakh in debt at a 10% interest rate for one year, finalising the agreement with Prachi.