Imdad Hussain
In today’s rapidly changing world of design and decor, one brand has consistently emerged as a beacon of inventiveness and affordability—Chokhat. Chokhat was founded on September 13, 2018, by Prachi Bhatia and offers a refreshing collection of nature-inspired designer home decor products. With an impressive product range of over 75 unique items, Chokhat’s approach is centered on designing pieces that are both aesthetically beautiful and cheap, giving it a one-stop solution for all home furnishing and décor needs.
In this post, we’ll look at Chokhat’s fascinating path, including its backstory, financial trajectory, unit economics, equity structure, and even its intriguing Shark Tank India experience. We’ll also take a closer look at Prachi Bhatia, the brand’s creative founder, and how her passion for design and profound grasp of the industry have propelled the company to unprecedented success.
The Birth of Chokhat
Prachi Bhatia, a Delhi native with a good eye for design, began her business path after two formative years working in the design and merchandising industries. Prachi was no stranger to the world of aesthetics and usefulness, having earned a degree in product design and gained experience through internships and early career responsibilities. However, it was her unwavering ambition to deliver high-quality, nature-inspired décor to a wider audience that drove her to establish Chokhat.
On September 13, 2018, Prachi made a personal investment of ₹ 1 lakh to revolutionize home décor. Her ambition was clear: to build a brand that would offer a diverse selection of designer products inspired by nature- where the beauty of animals, birds, and organic shapes would combine perfectly with modern design sensibility. With nature as her inspiration, Prachi envisioned items that were both reasonable and appealing, making luxury accessible to everyone.
Early Days: From Home Office to Expanding Horizons
The journey was anything but usual. Prachi oversaw all operations on her own for the first two years, working from home and juggling several jobs including as design and merchandising, marketing, and customer support. This hands-on approach enabled her to gain a thorough understanding of the market’s peculiarities and create a brand that customers identified with. Chokhat began selling its first collections in January 2019, and while the market response was initially limited, it was promising.
Initially, Prachi did not hire any further employees. It wasn’t until four years of self-reliance that she went from a one-woman show to a proper office setup with the assistance of a family member. She just hired a professional marketing agency after recognizing the importance of smart marketing in expanding the reach of her business. Chokhat now employs a small yet active staff of 11 devoted experts.
Yearly Sales and Growth Trajectory
Chokhat’s financial record depicts a fascinating pattern of slow expansion punctuated by strategic leaps. Although the first fiscal year (FY 2018-19) had no sales because the brand was still in its early stages of development, the following years saw consistent growth:
- In FY 2019-20, sales reached ₹ 4.5 lakhs, marking the brand’s first entry into the competitive home decor sector.
- In FY 2020-21, Chokhat’s nature-inspired designs grew in popularity, with revenues reaching ₹ 10 Lakhs.
- In FY 2021-22, sales increased marginally to ₹ 11 lakhs, paving the way for future expansion
- In FY 2022-23, sales increased significantly to ₹ 30 lakhs, suggesting strong market demand.
- In FY 2023-24, revenues nearly doubled to ₹ 55 lakhs as the brand strengthened its position in the home decor area.
- In FY 2024-25 (until October), sales have already reached ₹ 50 lakhs, with a predicted full-year sales of ₹ 1 crore.
These numbers show a dynamic growth history, especially given the enterprise’s humble beginnings and self-funding.
Profitability & Margins
While revenue is an important indicator of growth, profitability is the actual measure of a company’s sustainability. Chokhat’s net margin for fiscal year 2023-24 was 8%. Looking ahead, FY 2024-25 is expected to provide an EBITDA margin of 18%, indicating increased operational efficiency and tighter cost control. Such profitability estimates are not only encouraging, but they also serve as a solid indicator of Chokhat’s ability to scale in the competitive home decor market.
Diving into the Unit Economics
Understanding the unit economics of Chokhat offers valuable insights into how the brand manages its costs while delivering quality products at an affordable price. Here is a detailed breakdown:
- Cost of Goods Sold (COGS): 39%
- Operational Expenses: 13%
- Marketing Expenses: 17%
- Website & Payment Gateway Costs: 2%
- EBITDA Margin: 8%
By preserving these unit economics, Chokhat is able to strike a careful balance between cost and quality, ensuring that its goods stay economically priced without sacrificing style or usefulness.
The Initial Ask and Shark Tank India Journey
Chokhat made a deliberate decision to accelerate its growth by approaching the sharks on Shark Tank India. Prachi asked for ₹ 50 lakhs for 7% stock, valuing the company at around ₹ 7.14 crores. This audacious offer demonstrated her belief in her brand and its future possibilities.
However, as the negotiations continued, the dynamics changed. Eventually, an agreement was reached with industry veterans Anupam and Peyush. The final arrangement included an investment of ₹ 30 Lakhs for 10% equity and an additional ₹ 20 Lakhs in debt at 10% interest for one year. This arrangement effectively valued the company at ₹ 3 crores. The Shark Tank India episode not only supplied much-needed funding, but it also greatly increased the brand’s legitimacy and market visibility.
Future Sales Projections
Chokhat’s growth story is far from over. With a clear roadmap for expansion, the company has set ambitious sales targets for the upcoming fiscal years:
- FY 2024-25: Projected sales of ₹ 1 Crore.
- FY 2025-26: Expected to reach ₹ 3 Crores.
- FY 2026-27: Forecasted to surge to ₹ 6 Crores.
Founder’s Journey: Passion, Perseverance, and Purpose
Prachi Bhatia’s tale demonstrates the importance of following one’s passion. Prachi, who was born and bred in Delhi, was fascinated with design from an early age. After graduating in Product Design, she entered the working sector eager to learn and invent. Her early work as a designer and then as a merchandiser gave her tremendous insight into the complexities of product development, market trends, and consumer behavior.
Despite the difficulties of juggling full-time work and a budding business, Prachi’s dedication to her mission remained unwavering. Working from home for the first two years, she established Chokhat with unflinching dedication, transforming a modest investment of ₹1 Lakh into a blossoming brand that today draws attention in the home decor market.
Her journey is more than just numbers and revenue, it’s about leaving a legacy. Prachi’s ability to combine creativity and business savvy has impressed both customers and investo₹ Chokhat’s success is driven by her constant pursuit of quality, as well as a genuine belief in the beauty of nature-inspired design.
Conclusion
Chokhat is about more than just decorating homes, it is about inspiring lifestyles, creating emotions, and connecting people to the beauty of nature. With each product created and design launched, Chokhat reinforces its dedication to making the world a more visually attractive place, one home at a time. Chokhat embodies what it means to establish a brand with passion, soul, and a clear vision for the future, from its humble beginnings in a small home office to its current position as a trusted name in nature-inspired decor.