In the February 13 episode of Shark Tank India, Prachi Bhatia, the founder of Chokhat, presented her home decor brand with the goal of securing investment. Chokhat, which was founded in 2018, has carved a niche by offering unique, animal- and nature-inspired designs, making luxury home decor more accessible to everyone. Prachi, who is a product designer by training, sought ₹50 lakhs for a 7% equity stake in her business.
During her pitch, Prachi shared the journey of Chokhat, highlighting the brand’s creative vision and impressive designs. She presented beautifully crafted gifts to the sharks, which received admiration. However, while the brand’s potential and numbers were promising, Prachi’s handling of the team and hiring practices drew significant scrutiny from the investors.
One of the first concerns raised by Anupam Mittal was regarding Prachi’s approach to managing her team. Prachi revealed that for the first four years, she had run the entire business single-handedly. Although she eventually realized the importance of hiring a team, she admitted that she had been hesitant to do so, fearing the challenges that come with letting employees go.
This hesitation raised red flags for Peyush Bansal and Aman Gupta. Peyush, in particular, questioned Prachi’s ability to make tough decisions when it comes to hiring and firing employees. He bluntly asked, “How will you know when to hire and when to let someone go if you can’t make these decisions?” Prachi admitted that managing a team was a skill she had yet to master and acknowledged the difficulty in balancing these responsibilities.
She further explained that she had only recently hired two employees, one with a salary of ₹10,000 per month and the other earning ₹7,000 per month. When Anupam Mittal inquired about her highest-paid employee, Prachi shared that the previous highest salary had been ₹15,000, but she had let that employee go just last month.
Anupam pointed out a contradiction in Prachi’s approach, highlighting that while she expressed a desire to take care of her employees, her payment structure was far from ideal. He noted, “On one hand, you say you want to do the best for your employees, but on the other, you are paying them below minimum wage.”
In her defense, Prachi explained that building a good team requires investment, and that’s why she had come to Shark Tank. She emphasized that the funding would enable her to secure a year’s worth of salary runway for her employees, ensuring that she could provide them with stability as she focused on growing the business. Her ambition and candidness resonated with the investors.
After a lengthy discussion, Anupam Mittal and Peyush Bansal offered Prachi a deal of ₹30 lakhs for 10% equity in Chokhat, along with an additional ₹20 lakhs in debt at a 10% interest rate for one year. While this offer was a departure from Prachi’s original ask, it provided her with the necessary resources to strengthen her team and scale her business to new heights.
Though Prachi did not receive the exact terms she had hoped for, the deal she secured would allow her to move forward with her vision and address the critical team-building aspect of her business. Walking away with the funding she needed, Prachi’s journey with Chokhat is poised to enter a new phase, supported by the sharks’ investment and guidance.