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House of Chikankari is an e-commerce startup founded by a mother-daughter duo from Delhi, India. Akriti, the daughter, completed her undergraduate degree from Kings’ College London in 2019 and worked as an intern in a fashion brand in India from 2019-2020. Her mother, on the other hand, has a passion for weaving and creating various embroidery designs.
The company was started during the COVID-19 pandemic and aims to provide the finest Chikankari designer dresses to people worldwide. Chikankari is an art form originating from Lucknow that has been popular for over a century. Begum Noor Jahan helped spread its popularity throughout the world, and the art form has received a GI tag from the Government of India.
The aim of the startup, House of Chikankari, is to provide the finest Chikankari designer dresses to people worldwide while preserving the cultural heritage of this art form. Chikankari is an embroidery style that originated in Lucknow and has been popular for over a century. The startup strives to maintain the authenticity and quality of Chikankari to serve modern audiences and promote it as a form of art.
In addition to this, House of Chikankari aims to empower women through their work. The company has provided employment for over 5000 women karigars who are skilled artisans in the field of Chikankari. By providing employment opportunities to these women, the startup is helping to create a more equitable society and support the economic empowerment of women.
Furthermore, the startup is committed to ethical and sustainable practices in the production of their dresses. They source their materials from ethical suppliers and use sustainable production methods, which align with their goal of promoting responsible consumption and production.
The business model of House of Chikankari is primarily focused on e-commerce, where customers can browse and purchase Chikankari designer dresses through their website. The startup also offers customization services where customers can request specific designs or alterations to the dresses. They work with skilled women karigars who create these customized dresses with utmost care and attention to detail.
To provide high-quality designer dresses at affordable prices, House of Chikankari has implemented a direct-to-consumer model that eliminates the middlemen and keeps the costs low. This model also allows the startup to have a greater control over the production process, ensuring the authenticity and quality of the dresses.
The target market for House of Chikankari is primarily women who are interested in traditional and elegant designer dresses. Their target audience is diverse and includes women from all age groups and backgrounds who appreciate the artistry and craftsmanship of Chikankari. The startup also targets the global market, with a focus on customers who are interested in sustainable and ethical fashion.
The founders' equity in the company is Adarsh with 43%, Tapash with 32%, and Varad with 20%, while the remaining 5% is with a mentor and SINE-IIT Bombay. Ayusynk's device has an average selling price of Rs. 12,000 with a gross margin of 55%. As of now, the company has sold 5000 units, generating sales of Rs. 32 lakhs in the last month, and the revenue generated from April to the current date of FY 22-23 is around 3 crore rupees.
The projected sales for the end of this year are Rs. 7 crore rupees, and the projected EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) is 18%. The company has sold 90% of units among the 5000 units to telemedicine companies and the remaining 10% to B2C doctors.
The pitchers asked for 75 lakhs for 1% equity in the company.
During the negotiation, Aman offered 75 lakhs for 5% equity, while Vineeta and Anupam counter offered 75 lakhs for 6% equity. Piyush and Aman re-counter offered the original deal of 75 lakhs for 5% equity, and Akriti countered with 75 lakhs for 2% equity. Piyush and Aman then counter offered 75 lakhs for 4% equity.
Vineeta and Anupam matched Piyush and Aman's offer of 75 lakhs for 4% equity, but Akriti then countered again for 75 lakhs for 3% equity with Piyush and Aman. After much negotiation, the final deal was settled for 75 lakhs for 3.75% equity, giving House of Chikankari the required funding to continue their growth.
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