Nykaa is an Indian e-commerce company, which sells beauty, wellness and fashion products through e-commerce and offline stores. It was founded by Falguni Nayar, Former Managing Director, Kotak Mahindra Capital Company in 2012 and headquartered in Mumbai. In 2020, it became the first Indian unicorn startup headed by a woman.
Nykaa sells products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an omnichannel model and began selling products apart from beauty. As of 2020, it retails over 2,000 brands and 200,000 products across its platforms.
The brand name Nykaa is derived from the Sanskrit word nayaka, meaning actress or “one in the spotlight”. The website was first launched around Diwali 2012, and was available commercially in 2013.
In 2015, the company expanded from online-only to an omnichannel model and began selling fashion products.
Since 2012, Nykaa has raised money through multiple rounds of funding. In March 2020, it raised ₹100 crore (US$13 million) from Steadview Capital, thus making it a unicorn startup valued at ₹85 billion (US$1.1 billion). This was followed by another tranche of ₹67 crore (US$8.9 million) funding by Steadview in May 2020. Two Bollywood actress invested in the company through secondary funding. Katrina Kaif invested ₹2.04 crore (US$270,000) in the company in 2018, and Alia Bhatt invested ₹4.95 crore (US$660,000) in July 2020. In November 2020, global asset management firm Fidelity invested in the company through a secondary sale of shares from an existing equity investor.
The cosmetics market was valued at $1.3 Billion in FY2020 and is estimated to grow at a double-digit CAGR of 16.39% through FY2026 to reach $2.89 Billion by FY2026.
Nykaa opened its Initial Public Offering (IPO) on 28 October 2021 with a price band of ₹1,085-1,125 per share. The IPO was oversubscribed 81.78 times, raising ₹5,352 crore (US$710 million) at a valuation of US$7.4 billion. Nykaa was publicly listed on the NSE and BSE on 10 November 2021, and its price rose by 89.2% on opening day, valuing the company at nearly US$13 billion. The company has said the IPO proceeds will be used for a range of corporate purposes, including investing in FSN Brands or setting up new retail stores. The money may also be for capital expenditures or debt repayment.
Reference:
https://startuptalky.com/nykaa-success-story/
https://www.bloomberg.com/news/articles/2021-11-10/india-beauty-site-nykaa-soars-89-in-trading-after-ipo
Image Source: Business Standard.
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