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While Chokhat founder’s pitch, business idea and sales figure impressed Shark Tank India judges, Anupam Mittal raised concerns about her team management.
Chokhat is a Delhi based home decor brand. (Photo Credits: Instagram)
Shark Tank India season 4’s recent episode featured Prachi Bhatia, the founder of Chokhat, a Delhi-based home decor brand. Following the introduction, she asked for Rs 50 lakh in exchange for 7% equity, valuing her company at Rs 7.14 crore. While her pitch, business idea and sales figure impressed the judges, Shaadi.com founder Anupam Mittal raised concerns about her team management. Prachi revealed that for the first four years, she ran the entire business alone. Although she later realised the importance of building a team, she was afraid to hire someone because of worries that she might have to fire them after a few months.
Just like Anupam, Aman Gupta too became concerned, while Peyush Bansal pointed out that with this mindset, she won’t be able to hire anyone. The Lenskart founder said, “Aise toh aap kisi ko kaam pe nahi rakh paoge? Aapko kaise pata chalega kisey hire karna hai aur kisey nikalna hai (If this is the case, you won’t be able to hire anyone. How will you know whom to hire and whom to fire)?”
Prachi Bhatia agreed with this and confessed that she still require guidance to improve her team building abilities. She then mentioned about bringing two people on board recently, one with a salary of Rs 10,000 per month and the other Rs 7000 per month. The Chokhat founder also revealed that her highest paid employee was earning Rs 15,000, but she fired them last month.
This led Anupam Mittal to ask, “On one side you say you want to do the best for these people, on the other hand, you are paying these people lower than minimum wage.” After Anupam raised his issue, Prachi explained that she needs money to build a good team and for the same reason, she’s asking for this particular investment. She wanted to make sure she had enough funds to pay the salaries of the new employees for at least one year.
Prachi Bhatia’s honesty and ambition impressed the judges on Shark Tank India, leading to Anupam Mittal and Peyush Bansal teaming up for the deal. Although she didn’t get the exact amount she wanted, but got Rs 30 lakhs for 10% equity and an extra Rs 20 lakhs as a loan with 10% interest for one year. This funding will help her hire more team members and grow her business further.
