Home decor startup Nestasia targets one crore households in 5 years — founders discuss roadmap

Since its founding in 2019, Nestasia has made a space for itself in India’s home décor landscape. At the helm of the company are founders Anurag Agrawal and Aditi Murarka. In an interview with CNBC-TV18, the two shared insights into their journey, the challenges they’ve faced, and their vision for the future.

After overcoming the hurdle of establishing a new brand in a crowded space amid a pandemic, the founders have now set their sight on Nestasia being present in one crore households in the next five years.

The idea behind Nestasia was born from the founders’ shared passion for creating beautiful spaces. Having built three homes across Southeast Asia, Agrawal and Murarka realised there was a gap in the Indian market for home décor that seamlessly blends style and practicality. “We wanted to create products that not only elevate living spaces but also reflect the personality of the people who live in them,” says Murarka. With backgrounds in finance and e-commerce, the pair combined their expertise to create a brand that marries artistic expression with business acumen.

However, building a home décor brand from the ground up came with its own set of challenges. One of the biggest hurdles was the pandemic, which brought a surge in demand for home products as people spent more time indoors. “The pandemic created opportunities but also logistical difficulties. Managing the supply chain with production delays and shipping disruptions was tough, but we overcame it by diversifying our supply network and forming stronger relationships with local artisans and manufacturers,” shares Agrawal.

The founders also faced the challenge of establishing a new brand in a crowded market. “Being a new player in such a competitive space meant we had to work hard to stand out,” says Murarka. To build brand recognition, Nestasia focused on its digital presence, using social media and content marketing to reach design-conscious consumers. “We invested heavily in our digital presence, using social media and content marketing to create a brand that resonated with design-conscious consumers. We focus on personalised customer service, understanding their feedback, and continuously refining our product offerings based on their preferences,” Murarka explains.

This digital-first approach has been a key factor in Nestasia’s success. Currently, 90% of the company’s revenue comes from online channels, but this is set to change as the brand expands into brick-and-mortar retail. “We’re investing deeply in offline distribution and expect offline to contribute 30% of our revenue over the next 24 months,” says Agrawal.

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The $8.35 million, recently raised in a funding round from Susquehanna Asia VC and Stellaris Venture Partners, will be used to expand product offerings, develop offline stores, and enhance brand-building efforts. “Our monthly revenue run rate has increased almost 6x since the last funding round, and with this new capital, we aim to invest in our product assortment, physical retail distribution, and team hiring,” says Agrawal.

Nestasia will aim to spend 50% of the fresh equity funding towards store expansions. The company plans to have 15 stores operational by March 25 and 40 stores by March 26. “The first priority is to deepen penetration in the cities that we are already present in. We are also opening stores in new cities — Mumbai, Pune, Noida, Gurgaon, Chandigarh and Dehradun.”

Based on their internal analysis, Nestasia currently commands 5-6% of the market share in online sales for the segments that they are present in. The company aims to reach 25% online, and 5% offline market share in the next few years.

In addition to expanding its product lines, Nestasia is set to enter new categories such as kitchen appliances and Nest Baby & Kids, a range of products for children. “We’re thrilled to be launching these new categories. The Nest Baby & Kids collection is designed to bring joy and creativity into households, while our kitchen appliances aim to make everyday tasks more special,” Murarka says.

Looking ahead, the founders are excited about what the future holds. “With increasing GDP per capita, consumers in India are becoming more design-conscious. We believe Nestasia is perfectly placed to become the go-to destination for home purchases,” says Murarka.

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