From Shark Tank India to ₹9.69 Crore: The Nestroots Story of Design, IP, and Growth

Comfort, style, and a dash of individuality come to the mind when one think of home. It seems like an industry that is never out of style. So Nestroots’s Shark Tank arrival and carving a name for itself in India’s thriving direct-to-consumer market seemed obvious. And they did so by concentrating on the junction of reasonably priced yet stylish kitchen essentials and home décor.

When Chhavi shared her story of transitioning from a corporate professional to creating a brand that embodies her own passion for décor on Shark Tank India (Season 2), the company made an impression. According to Indian Startup News, Nestroots obtained a 2% equity investment of Rs 50 Lakh from Namita Thapar of Emcure Pharma and gained recognition and credibility from the pitch. Customers viewed it as a brand with ambition and design roots rather than just another online vendor.

What was unique about it? Its unique selling point is the way it strikes a balance between affordability and aspirational design. Nestroots positioned itself in the “premium-affordable” décor market, which is a sweet spot for urban middle-class consumers who want their homes to look Pinterest-worthy without breaking the bank, rather than concentrating only on luxury or mass-market plastic.

Intellectual Property (IP) Portfolio

For a brand in home and lifestyle, IP is not optional but it’s survival. From names and logos to designs and product lines, every element of Nestroots’ identity must be protected in a market where imitation is common.

Here’s what the filings show:

This portfolio covers three crucial categories:

• Class 24: Fabrics & linens (soft furnishings).
• Class 20: Furniture & décor (core business).
• Class 21: Kitchenware & household utensils (fast-moving consumer goods).

Together, this gives Nestroots a defensive moat across its product range. No competitor can casually use the “Nestroots” brand in home décor, furniture, or kitchen tools without risking infringement.

On the copyright side, Nestroots owns rights over its product photography, catalogues, digital creatives, and product descriptions. For unique design, say, a specially carved wooden serveware item or patterned furniture, it could even explore design registrations, though these are typically underutilised in India.

Why IP Matters for Nestroots

The home & kitchen space is notorious for copycats. A design uploaded today can be copied by a small seller and sold at a cheaper price tomorrow. So by owning IP across classes 20, 21, and 24, Nestroots protects its branding, customer trust, and investor appeal. IP isn’t just legal paperwork, it’s a signal to consumers that they are buying the original.

Business Contracts They Likely Use

A company like Nestroots operates on multiple fronts, like manufacturing, sourcing, retail partnerships, e-commerce, and each layer requires contracts. Among the most important are:

• Manufacturing and Supplier Agreements: Since products come into contact with food and are used at home, quality control is essential. Consistent standards and uniformity, are guaranteed by these contracts.
• E-commerce Platform Agreements: Listing with Pepperfry, Amazon, Flipkart, Myntra, and other such online sellers is a must for any business. Thus, liabilities, returns, and commissions must all be negotiated.
• Employment Contracts: From warehouse staff to designers, clear terms on confidentiality and non-compete clauses protect proprietary designs.
• Marketing and Influencer Partnerships: Working together with influencers or décor bloggers for product promotion or collaboration, needs terms and conditions to be defined well.
• Franchise or Retail Agreements: If they expand offline into stores, revenue-sharing contracts will matter.
• Lease Agreements: Warehouses, office space, or studio rentals.
• Shareholder Agreements: With ADC Brands Pvt. Ltd. now holding trademarks, corporate structuring contracts define ownership and future exits.

Without these contracts, operational chaos can quickly snowball into a financial or reputational disaster.

Due Diligence: Diving Deep

For any investors or partners, due diligence in Nestroots would entail peering under the bonnet to check if the brand is as formidable as it appears in public.

Corporate Structure

• Company: ADC Brands Pvt. Ltd. (CIN: U52520DL2021PTC380429)
• Incorporated: 20 April 2021, registered in Delhi.
• Status: Active, latest AGM on 30 Sept 2023.
• Age: 4 years (young but stable).

Ownership & Filings

• Check if founder Chhavi Singh remains a promoter, and what percentage equity she holds.
• Cross-verify ROC filings for changes in shareholding after Shark Tank and later funding.

IP Portfolio

• Make sure all three trademarks (3620176, 4415879, 6075159) are renewed and active.
• Verify if there are any oppositions or infringement notices.
• Double-check the assignment from Chhavi (sole proprietor) to ADC Brands Pvt. Ltd.

Financial Due Diligence

• Revenue as of March 31, 2024, was ₹9.69 crore.
• Investors will look at YoY growth, gross margins, return rates, and SKU contribution.
• Important question: Can Nestroots get bigger from a niche premium décor brand to a household name without burning cash?

Regulatory & Compliance

• GST registrations should be up to date.
• Consumer protection compliance, particularly on product safety, return/refund policies.
• Labour law compliance for warehouse and manufacturing personnel.
• Import/export documents (if importing internationally).

Risk Assessment

• Intense competition in the home & kitchen category, such as Amazon Basics, Ikea, and local unbranded vendors.
• Design copying risk from lower-priced brands.
• Excessive reliance on online. If Flipkart/Amazon algorithms change, visibility may suffer.

For an interested shark or VC, due diligence makes them not fall into stealth traps such as unpaid GST, unsecured IP, or supply chain vulnerabilities.

Key Legal & Business Lessons

Nestroots’ trajectory unveils several strong takeaways for Indian startups:

Register Trademarks Early, and in Several Classes

Chhavi Singh registered Class 24 (fabrics) back in 2017, many years before Nestroots became a household name. Subsequent registrations in 2020 and 2023 covered furniture and kitchenware. That vision has the brand’s future categories safeguarded.

Corporate Structuring Makes a Difference

Shifting to ADC Brands Pvt. Ltd. formalized the enterprise, transforming it into an investment-worthy company. Scale startups need to leave founder-owned enterprises behind and transition to correct corporate entities.

Contracts Protect Growth

From vendors to influencers, contractual agreements avoid conflicts. In lifestyle and décor brands, a single batch of defective products can dent the image. Legal contracts inject accountability.

Due Diligence Fosters Investor Trust

Sharks and VCs desire to see clean IP, transparent accounting, and compliance. For Nestroots, the display of valid trademarks, clear corporate records, and regulatory compliance forms the core of raising larger rounds.

Competition Will Copy: Your Brand Must Defend

In homeware, design copying is the norm. What makes you unique isn’t a product but it’s a legally registered brand. A copied table design will be forgiven by consumers, but they will always look for the original Nestroots experience.

Conclusion

Nestroots is more than just a décor startup; it’s a prime example of how a founder’s idea, supported by prompt legal action, can build a strong brand in a competitive market. It has established the framework for scale by registering trademarks in various classes, incorporating as a legitimate business, and generating consistently increasing revenues (₹9.69 crore FY24).

The lesson for other business owners is obvious: being legally prepared is an investment, not a cost. Contracts, due diligence, and IP filings are more than just paperwork; they are barriers that let innovation and business thrive without worrying about copying or collapsing.

Nestroots is positioned as a company that comprehends not only the art of design but also the science of law and business, which is important given the continued growth of the home décor market in India.

Author Details-Apoorva Lamba (3rd Year Student, Madhav Mahavidyalya, Jiwaji University, Gwalior)