Nestroots is a home furnishing and decor brand, started by Chhavi Singh, who pitched her company in the 9th Episode of Season 2 of Shark Tank India. While nearly all Sharks were impressed by what Chhavi has managed to build, Nestroots ended up getting offers from two Sharks.
In this piece, I will walk you through what exactly is Nestroots, the Nestroots Shark Tank Pitch and share updates on what happened with Nestroots after their Shark Tank Appearance.
What is Nestroots?
Put simply, Nestroots is a brand focussed on helping people redesign homes by selling furniture, kitchen and dining products, tabletop and bar products, furnishing and more. While the brand is Indian in origin, it claims to be global in spirit. The brand aims to give a modern and contemporary twist to home furnishing and prides on creating aesthetically pleasing and elegant furnishing.
Nestroots Shark Tank Pitch & Deal
After entering the Shark Tank room, Chhavi began her pitch by highlighting the problem that it is difficult to find new and unique home furnishing products in the market. To solve this problem, Chhavi created a modern & contemporary home furnishing brand. The unique selling points of Nestroots include: elegant aesthetics and unique designs, utility based superior quality and affordable pricing.
At the time of the Shark Tank Episode, Nestroots was available in more than 25 platforms like its own official website and marketplaces like Amazon, Flipkart, Myntra, Tata Cliq etc with more than 1 lakh Indian households having made Nestroots a part of the house.
Chhavi’s vision is to turn Nestroots into the number one brand for the home category in India and compete with international brands in global markets. She then informs she is seeking Rs 50 lakh for 1% of the business.
After learning about Chhavi’s background as a professional that has 10 years of experience, Anupam asks her to share some details about how she decided to go ahead with this business idea. Chhavi informs that she got the idea for this after her marriage when she was decorating her own house. She also informs that everyone in her family(father, mother & brother) has built a successful business of their own.
When Namita asked Chhavi about the existence of competition in the market, she counters by saying the in house designing and quality of raw material combined with an affordable pricing differentiates them from other players in the market.
After seeing the products, Vineeta shares that she has recently refurbished her more and that Nestroots as a brand lives up to the positioning Chhavi is putting forward. However, Aman says he has bought products like these from shops recently and this is not something new. Chhavi responds by saying that this issue of sameness could be only in categories like cutlery, in which there is not much scope to differentiate but the rest of products are definitely unique given they do the designing themselves.
On being asked about the sales by Peyush, Chhavi informs that Nestroots does close to 1 crore in sales on average every month. Gross margins vary per category between 70-75% and net profitability between categories is between 16-19%. She also informed that FY22 sales was Rs 7.2 crores and net profit was 14% last year. Chhavi also mentioned she expects to close the next year at 15 or 16 crores in sales.
On being questioned why revenue is only doubling despite having so much profit and option to reinvest Chhavi shares that they only spend Rs 5-6 lakhs per month on marketing, preferring to take a prudent approach. On being asked about how they solve the problem of dead inventory, Chhavi shares they use data analysis, a negative working capital with vendors and avoid fads.
Vineeta then informs that even though she loves what Chhavi has done, she will not be able to invest as she has invested in a similar company. Namita offers Rs 50 lakhs for 2% equity, meaning Nestroots would be valued at 25 crores. Aman does not give an offer but suggests spending more on marketing and brand building. Anupam also refuses to invest citing the competition in the market but Peyush offers to invest Rs 50 lakhs for 5%. As one would expect, Chhavi decides to go ahead with Namita’s offer.
What Happened to Nestroots after Shark Tank ( Nestroots Shark Tank Update )
After the Nestroots Shark Tank appearance, the brand exposure the brand received must have most likely led to an increase in sales. The Nestroots team also leveraged the increase in traffic cleverly by displaying a banner that shared Shark Tank viewers would get an additional 10% off on purchases if they used the ‘SHARKINNEST’ coupon code. As is often the case with such appearances, the episode also translated into a lot of coverage from news outlets, leading to additional brand awareness of Nestroots.