High-Quality Furniture & Furnishing Products by Nestroots

Nestroots is a promising Indian startup founded by Chhavi Singh in 2016. With over 10 years of industrial experience, Chhavi Singh has a background in Sales and Operations at Arvind, as well as five years of experience in training and development. Nestroots was inspired by global aesthetics, and Chhavi Singh's family's entrepreneurial success motivated her to start her own business.

Nestroots is a proudly Indian brand that offers a range of products such as decor, dining, and furnishings. The unique selling proposition of the brand is its elegant aesthetics and unique designs. Their products are known for their superior quality, affordability, and utility-based features. Nestroots products are available on over 25 online platforms, including their own website, and marketplaces like Amazon, Flipkart, Myntra, Tata Cliq, etc. Their customer base has reached over one lakh, and the brand aims to become a go-to brand for these types of products, competing with international market players.

AIM

The aim of Nestroots is to establish itself as a go-to brand for decor, dining, and furnishing products in India and compete with international market players. The brand is committed to providing high-quality, affordable products with unique designs that cater to a wide range of tastes and preferences. Nestroots' focus is on creating a strong customer base and expanding its reach by offering its products on various online platforms, including their own website and marketplaces like Amazon, Flipkart, Myntra, Tata Cliq, etc. The startup aims to bring Indian design and aesthetics to the global market and establish itself as a leading player in the industry.

BUSINESS MODEL

The business model of Nestroots is primarily based on e-commerce and online marketplaces. The startup offers a range of decor, dining, and furnishing products through its website and various online platforms, including Amazon, Flipkart, Myntra, Tata Cliq, etc. This approach allows Nestroots to reach a large customer base across India and provides customers with easy access to their products.

Nestroots' products are designed to be affordable, and the startup uses a direct-to-consumer model to keep prices low. By eliminating the need for intermediaries, Nestroots can offer high-quality products at competitive prices, making them accessible to a wider range of customers. The startup also maintains control over the production and distribution process, ensuring quality control and timely delivery of their products.

Another aspect of Nestroots' business model is its focus on unique designs and elegant aesthetics. The startup aims to differentiate itself from its competitors by offering products that are not only functional but also visually appealing. By focusing on design, Nestroots can attract customers who are looking for products that reflect their personal style and taste.

TARGET MARKET

The target market of Nestroots is primarily Indian consumers who are looking for high-quality and affordable decor, dining, and furnishing products. The startup's products cater to a wide range of customers, from young professionals to families and homemakers. Nestroots' unique designs and elegant aesthetics appeal to customers who value style and visual appeal in their home decor and furnishing products.

Nestroots' products are designed to be accessible to a wide range of customers, regardless of their budget. The startup's direct-to-consumer model allows it to offer products at competitive prices, making them affordable for many consumers. The startup's products are available on various online platforms, including their own website and marketplaces like Amazon, Flipkart, Myntra, Tata Cliq, etc., making them easily accessible to customers across India.

Nestroots' target market includes customers who are looking for a one-stop-shop for their home decor and furnishing needs. The startup offers a range of products, including furniture, kitchen and dining products, serveware and tableware, barware, and furnishing, providing customers with a diverse range of options to choose from. The startup's focus on quality and unique designs also attracts customers who are looking for products that reflect their personal style and taste.

SALES AND REVENUE

The furniture category is the major contributor to their sales, accounting for about 55% of their total sales. The average monthly sales of the company, after returns, is 1.1 crore rupees, with net sales (excluding GST) of 98 lakhs rupees.

The company sells its products on both their website and various marketplaces, with 25% of their sales coming from their website and the remaining 75% coming from marketplaces such as Amazon, Flipkart, Myntra, and Tata Cliq.

Nestroots has a gross margin of about 70-75%, which is quite healthy, and their contribution margin is about 10% on average. The company has been profitable, with a net profitability of 16-19%. In FY 21-22, the net sales of Nestroots were 7.2 crore rupees, with a net profit of 14%.

For the current fiscal year, the company is projecting sales of 16 crore rupees, which is more than double their previous year's sales. Nestroots spends about 5 to 6 lakhs rupees on marketing, which is a small percentage of their total sales.

Chhavi and her father are both shareholders of the company, and Chhavi has raised a debt of 35 lakhs rupees, which has been paid off. She also raised a fund of 35 lakhs rupees at a valuation of 4.5 crore rupees, indicating investor confidence in the company's growth potential. Overall, the sales performance of Nestroots has been impressive, and the company has been profitable, indicating a healthy financial position.

FUNDING IN SHARK TANKS INDIA

Nestroots appeared on Shark Tanks India seeking a funding of 50 lakhs rupees for 1% equity in the company. Namita, one of the sharks, offered to invest 50 lakhs rupees for 2% equity in the company.

Since none of the remaining sharks were interested in investing in the company, there were no counter offers. The final deal was agreed with Namita for 50 lakhs rupees for 2% equity in the company. This means that the company was valued at 25 crore rupees after the investment, which is a significant increase from the previous valuation of 4.5 crore rupees.

The investment from Namita will provide Nestroots with the necessary funds to support their growth plans and expand their product offerings. It also indicates investor confidence in the company's potential for growth and profitability. With the additional funding and support from Namita, Nestroots can continue to focus on their goal of becoming a go-to brand in the Indian market for home decor and furnishing products.