Nykaa, the leading e-commerce platform for beauty and fashion products, has filed papers with the Securities and Exchange Board of India(SEBI) to raise Rs 4000 crore via its IPO(Initial Public Offering), as reported by Moneycontrol.
Nykaa Applies for IPO
Founded in 2012 by former investment banker Falguni Nayar, Nykaa is the only profitable unicorn that is going public very soon. The e-commerce startup has filed papers with SEBI for its IPO. As per internal sources, the e-commerce giant plans to raise Rs 4000 crore from its proposed IPO.
On 29 July 2021, Next Big Brand reported that Nykaa will file IPO papers in the coming week. The startup plans to sell just 10% equity to raise $400 million pre-IPO.
Nykaa recorded a whopping revenue of Rs 1860 crore ($250 million) from its offline and online operations both. The company now boasts of over 1,500 brands in its portfolio, including leading luxury labels like Bobbi Brown, L’Occitane, and Estee Lauder, and it has even opened 68 brick-and-mortar stores in the country.
Other Details about Nykaa
CB Insights reports confirm that Nykaa was valued at around $1.2 billion in the last funding round. Currently, it is difficult to calculate the exact valuation due to the dynamic changes in tech-based startups valuation. But the startup’s main promoters and investors are targeting a $4 billion valuation before the start of its IPO.
On the other hand, Bloomberg’s January internal report suggested that Nykaa targeted $3 billion valuations.
Falguni Nayar founded Nykaa closed series A funding event in 2014 by raising Rs 20 crore by Indra Banga and Harindarpal Singh Banga and the startup was valued at around Rs 120 crore. In 2015, the e-commerce giant reached a valuation of Rs 500 crore when it raised Rs 59.6 crore led by TVS Capital.
Later, TPG acquired an 11.9% stake in the startup. In the series E5 round during January 2021, Nykaa reached a valuation of Rs 10,257 crore(around $1.5 billion), as per the Economic Times report.
Currently, Falguni Nayar and its family control a 51% stake of Nykaa. Around 8 5% of Nykaa’s stakes belong to its employers. TPG and Fidelity are the main investors of Nykaa.
To strengthen its operations further, Nykaa has acquired a jewelry brand, Pipa Bella. The startup has 1500+ jewelry designs to attract women having aged in the range of 20 to 35 years.
