Nykaa, the online beauty and personal care (BPC) store owned by FSN E-Commerce Ventures Ltd, made three major investments on Friday to strengthen its cosmetics and clothes portfolios.
According to a BSE filing, the listed online retailer announced the purchase of an 18.5 percent stake in beauty brand Earth Rhtym for Rs 41.65 crore, a 60 percent stake in Nudge Wellness for Rs 3.6 crore, a move into the nutraceuticals space, and finally, the acquisition of athleisure brand Kica for Rs 4.51 crore.
Harini Sivakumar founded Earth Rhythm, formerly known as Soapworks India, in 2015.
“The (Nykaa) investment is a clear endorsement of our efforts to build a clinically effective and technology-driven skin and hair care brand. Through this investment, our commitment to our customers and the planet is only going to get stronger,” Harini Sivakumar, Founder and CEO Earth Rhythm said.
Nykaa’s agreement with Onesto Labs-controlled Nudge Wellness is one of many recent deals with local D2C firms aimed at bolstering the early-stage beauty and lifestyle ecosystem, according to Falguni Nayar.
72 Ventures LLP owns 100% of Onesto Labs Private Limited, and after the transaction with Nykaa concludes in June 2022, Onesto will control a 40% share in the company.
Nykaa bought Kica, an active wear and athleisure apparel company, in its third purchase focused at improving its fashion vertical. Kica, which was founded in 2017 by Aneesha Labroo, will be housed among Nykaa’s other brands, including Pipa Bella, Gajra Gang, and IYKYK.
Aneesha Labroo, Founder, Kica stated, “Kica has found strong synergies with Nykaa Fashion’s positioning within the e-commerce landscape and its engagement with a wide network of customers around the country.”
Nykaa, which debuted on the stock market in November 2021, has been on a buying binge. In October 2021, just before its IPO, the company bought skincare brand Dot & Key for an undisclosed amount.
Over the last two years, it has also been developing its fashion industry through a few of acquisitions. It bought 20Dresses.com, a women’s styling platform, in 2019. It bought online jewellery shop Pipa Bella in April, a brand that caters to urban women aged 22 to 35.
Nykaa, which has grown to be an omnichannel lifestyle shop with over 17 million monthly active users, processes over 1.5 million orders every month. Through its website and mobile app, the company offers over 4,000 brands and 3.1 million product stock-keeping units (SKUs). The brand offers around 4,000 brands and over 3.1 million product stock-keeping units (SKUs) through its website and mobile applications platform as of 31 August 2021.