“I had to sell my house to start Chumbak,” Says Shubhra Chadda who after receiving $2 million in initial funding, is now ready for the second round of funding by matrix partners!
If you have a dream, follow it. No better example than Shubhra Chadda, CEO and co-founder of Chumbak, to prove it right. Four years ago, Shubhra and her husband, Vivek, decided to follow their dreams. But it took a huge amount of risk and investment to establish Chumbak, ‘a unique company which started by just selling artistic fridge magnets!’ They sold their three BHK apartment in Bangalore to raise capital. With an idea so great, they didn't think twice before risking it all. Over the years with Chumbak, Shubhra has successfully cemented a business idea of transforming the colours and unique artistry of India exceptional novelty products, including footwear, bags, wallets, souvenirs, key chains, jewellery and many more.
After selling funky theme based fridge magnets, they soon realised that they needed to come up with a variety of other product categories. They took an entire year to produce and manufacture twelve product categories before their launch in March 2010. Back then, Shubhra firmly said that Chumbak was not a niche brand, “It was always a mass brand!” Now it’s become a concrete reality, and Chumbak has become the hottest lifestyle product brand with 150 stores in India and 70 in Japan, with a strong e-commerce presence.
After being in business for four years, the online site of Chumbak offers products under forty-eight categories with approximately more than 400 products. Chumbak’s success story has astonished many, but very few make ‘Google’ curious. Google recently selected the company as one of the three companies worldwide for a case study on how companies have successfully used Google services. What started off as just a unique Chatur Idea that stirred up one fine afternoon between a trave-lo-maniac couple, is now set to expand their kiosks by 80 – 100 odd all around the country.
The multifarious model of Chumbak of having a strong online, as well as offline presence is working wonders for the happy couple. Whereas according to the company they are having three times the growth yearly. Like all retail business, there are challenges of design, supply, supply chain management and distribution. Shubra acknowledges and accepts the challenge gladly. She says, “One of the most fun things at Chumbak is working on new designs. Though a lot of our designs are India-inspired, they do well in an international environment. At the end of the day, the thing that makes me most happy is seeing people using our products.”
Chumbak is now aiming for a Rs. 400 crore target for their annual revenue within next few years. Although there are many businesses emerging which are ready to compete with Chumbak, it will now only depend upon how the brand devices its expansion strategy. Even though there are huge risks involved, there is a good chance that all the risks will pay off. When you aspire to achieve something, you must give it all that you have. As they say “Don't tell people your dreams. Show them!”
If you too have entrepreneurial dreams or wish to have a venture like the ones listed above, you need to have faith in your Chatur Idea. You will always wonder who will fund this idea and from where will you find investors. In that case, you can participate in the #BeAChatur Contest and not only be mentored but also stand a chance to win a whopping Rs.10 Lac funding for your dream startup idea.