Nykaa said on Tuesday it raised has raised an investment of ₹100 crores from the current investor hedge fund Steadview Capital.
Falguni Nayar, a former investment banker with Kotak Investment Banking, began as an online beauty store in 2012, and today Nykaa also has offline stores across the country.
“We deeply appreciate the confidence and encouragement of our customers, clients and brand partners who have been instrumental in our success. In the midst of this unprecedented global crisis, we are working to ensure that all our stakeholders are well served and that Nykaa succeeds as the industry’s leading retail player, “Falguni Nayar, founder and CEO, Nykaa said in a statement.
In April last year, Nykaa raised some 100 crores in a Series E funding round led by TPG Growth, an investment fund of major TPG Capital focused on U.S. private equity. It received another $30 million from Steadview Capital, through a secondary share sale, according to the news later in the same year.
The cosmetics store has grown up exponentially over the last few years. The net profits of the organization increased from about $214 in FY17 to about $1,229 in FY19.
“The shutdown has already impacted companies around the sector and this will have a huge effect on the business cycle and the cash conversion process. Like all consumer-oriented businesses, we are now facing a situation where our cash flow and profits are impacted while, on the other hand, our expenditure remains constant.
A note posted on the website of Nykaa said that for now, it will focus on the everyday necessities. “We’ve begun deliveries to select pin codes in Mumbai, Pune, New Delhi, and Bangalore, but there might be some delays due to local constraints. We’re trying our best to resume deliveries to other cities,” she said.
“We are excited to further improve our relationship with Nykaa. Nykaa has transformed India’s beauty industry and established a very powerful brand. We assume that the company is poised in the coming years for a solid growth trajectory.
The online beauty company has a target audience in the age group of 22 – 35 and has also launched private labeled products in the bath and body care category recently. Nykaa competes with online marketplaces like Myntra, Purplle, Flipkart, and Amazon.
Working on an inventory-based model, Nykaa has warehouses in Mumbai, New Delhi, and Bangalore, and offers all the leading brands including Kaya Skin Clinic, Lakmé, L’Oréal Paris and more.
Expanding its offerings, Nykaa last year launched Nykaa Network, an interactive beauty forum where subscribers could chat with each other. It also launched the Nykaa Design Studio for apparel in designer and premium brands like Ritu Kumar and Masaba in 2018.
