Nidhi Agarwal Startup Story: Sometimes it is not a simple task to find a perfect outfit, particularly if garment sizes do not fit various body types. Shopping for Western formal wear for many women in India has been a balancing act between comfort, looks and fit. In the world of fashion, Nidhi Agarwal realised that there was a problem that was not getting the attention it deserved: clothes that fit Indian Women.
She chose to do something about it, rather than take the issue as a given, by establishing a business that would allow her to solve it. This concept led her to launch Kaaryah, a fashion house that primarily worked on designing clothes for Indian women of all sizes and styles for Western fashion.
Though the business eventually went out of business, it is still an intriguing story of innovation through a customer-centric approach, women’s entrepreneurship and the difficulties of establishing a fashion start-up in India.
Who is Nidhi Agarwal?
Nidhi Agarwal is an Indian fashion entrepreneur and the founder of Kaaryah, a fashion brand aimed at solving the issue of fitting Indian women in the Western formal wear category.
Prior to starting her career in fashion, she had an impressive background in the finance, consulting and tech fields. She is a Chartered Accountant and has an MBA from Kellogg School of Management, Northwestern University, USA.
Nidhi held positions with KPMG, Bharti Airtel, Bain & Company and Honeywell India in the past. She was Director of Strategy at Honeywell and worked on the company’s space and missiles division, which included research and development related to India’s Mangalyaan project.
Her professional experience allowed her to have a solid knowledge of business strategy, market research and technology. But, when she started thinking about the things she was buying every day, she decided to make this a business.
The Simple Shopping Problem That Inspired Kaaryah
Kaaryah’s concept was inspired by a scenario many women could relate to. One day, Nidhi spilt coffee on her white shirt and had to find a shirt that looked similar to her white shirt to wear to an important business meeting. She went to the stores to look for another suitable shirt, but it was hard to find a shirt that fit right.
In fact, she wondered if other Indian women had the same issue and started asking herself that question. She did some research and collected feedback from approximately 250 women to better appreciate the situation. One of her conclusions was that the problem of finding well-fitting Western wear was quite common.
She noticed that a lot of fashion brands provide a restricted sizing system and don’t take into account the body shapes of women in India. This discovery was an opportunity for a business. Women were not only required to have more garments, but have garments which are created with their measurements and body proportions. That was the concept that would end up as Kaaryah.
How Kaaryah Entered the Indian Fashion Market
Kaaryah is an online fashion brand, mostly aimed at Western non-casual wear for women. It was primarily aimed at providing women of various shapes and sizes with better access to formal and work attire.
The brand stood out for its sizing method. Kaaryah launched as many as 18 sizes in the line of clothing, while many fashion companies would have only a few sizes.
It contains products like:
- Properly fitted formal college shirts.
- Fitting and comfortable trousers that are made.
- Skirts suitable for professional and everyday occasions.
- To cater to the needs of the Indian woman, Western workwear is created.
The company also unveiled a technologically enhanced sizing option, ‘My Perfect Fit ‘. It assisted customers in choosing the right size of clothes as per their height, weight and measurements. This strategy transformed Kaaryah into a regular online clothing store. It was trying to merge fashion, customer information and technology to enhance the shopping experience.
Building a Brand Around Inclusivity
One of the best concepts of Kaaryah was that fashion need not be restricted to a body type. Nidhi felt brands were not providing her size, which was one of her favourite looks, and so women should not have to give up on such fashions.
The company concentrated on various body shapes such as apple, pear, hourglass and rectangle. This enabled customers to shop past the conventional size labels and discover clothes that fit their shape. Kaaryah also contributed to real-world issues of clothing, such as shirts opening between buttons and shirts untucked from trousers.
These details were indicative of the company’s customer-centric attitude. The brand did not follow the trends of the times, but looked for solutions to everyday problems faced by its customers. Kaaryah came from the Hindi word Kaarya, which translates to work. Its positioning was built around women who handled several responsibilities, and not just traditional office jobs.
Getting Ratan Tata’s Support After Investor Rejections
It was not enough to just find a problem that consumers have to start a fashion business. Also, Nidhi had a need for financial assistance to develop products, build technology, manage operations and reach customers. But it was not so easy to persuade investors. Nidhi says she was rejected by 113 investors before getting people on board for her business. Many new entrepreneurs would have given up on their own business venture after multiple rejections, but she persisted with her idea for a business.
Her perseverance paid off when Ratan Tata got in touch with Kaaryah in 2015 and invested in the startup. The company also raised investment from TV Mohandas Pai and The Saha Fund in a pre-Series A funding round later. This support helped the business in gaining the credibility and working towards the expansion of the business. Having business leaders who could support her was an important milestone for Nidhi. It also proved that a niche fashion business could catch the eye when addressing a market need.
The Growth and Expansion of Kaaryah
Kaaryah slowly established itself in the online fashion market in India. In addition to its own website, the brand also made its products available on various e-commerce marketplaces such as Myntra, Jabong, Flipkart, Snapdeal and Paytm.
It’s focus on fitting helped it to carve out a niche in a competitive market. The company also capitalised on technology and product development to enhance its operations. The principles followed were grounded in knowing what customers wanted, taking measurements, and then creating clothing that fit them better.
Why did Kaaryah have to close?
Even with the success and recognition of the innovative approach and the backing of the prominent investors, Kaaryah failed to maintain its operations. In January 2018, it was officially reported that the company had ceased operations due to an inability to find further funding.
Nidhi Agarwal said the company had been trying to raise funds for around 18 months. The company’s operations also proved to be capital-intensive, putting pressure on the business. The closure led to the end of the startup’s activities, as employees were left without their jobs. Kaaryah’s closure reminds me that a great product and a great idea are not a guarantee of future success in business. Also, start-ups must have sustainable funding, healthy working capital, stability, and must be able to navigate through tough times.
What Entrepreneurs Can Learn From Nidhi Agarwal’s Journey
There are a few important lessons that people can learn from Nidhi Agarwal’s experience if they are planning to run their own business. First, genuine business opportunities can be learned from everyday problems. Her fashion venture started from an ordinary place (how to find a good-fitting white shirt). Secondly, knowing customers before making products can help build a business’s identity. Kaaryah’s research-based method enabled her to find an unmet need for a fashion market segment.
Thirdly, rejection is an integral part of entrepreneurship. Nidhi has had to deal with over 100 investor rejections, which is why persistence is key when building a business. Last but not least, financial planning is essential, along with innovation. Kaaryah’s closure illustrates that a differentiated product and investment support are not enough to eradicate the monetary dangers of a startup.
Frequently Asked Questions (FAQs)
Who is Nidhi Agarwal?
Nidhi Agarwal is an Indian businesswoman who is the founder of Kaaryah, which was a women’s western wear brand that specialised in providing better fit for different body types in India.
What is Kaaryah?
Kaaryah was a fashion brand from India specialising in western formal wear and non-casual wear for women. It gained popularity because of its offer to provide up to 18 different sizes of clothes.
Why did Nidhi Agarwal decide to launch Kaaryah?
The inspiration behind creating Kaaryah came when she could not find a good-fitting white shirt after accidentally spilling her coffee on her old one. She later understood through her research that most Indian women face the same issue while looking for Western wear.
What was unique about Kaaryah compared to other fashion brands?
Kaaryah used inclusive sizes, Indian body types, and technology for fit in its products. It provided up to 18 sizes and the My Perfect Fit sizing system.
Did Ratan Tata invest in Kaaryah?
Yes. Ratan Tata invested in Kaaryah in 2015. It was followed by investments from TV Mohandas Pai and The Saha Fund.
