THE GLAMOROUS IPO PROPOSAL OF NYKAA2 years ago Rituka M
Several e-commerce platforms have been launched in India, but one name has stayed and made a commercial name for it. Nykaa, founded by Falguni Nayar in 2012, was launched as an e-commerce portal for a curated range of beauty and wellness products. With a void yearning for a platform that was a one-stop-shop for all products, wellness, and beauty, Nykaa swooped in like a knight in shining armour and solved all the (product-related) woes of women by setting up one portal.
With more than 1200 global brands listed on the platform, the products range from skincare, beauty, fashion to health supplements and hair products. With the acquisition of 20Dresses in 2019, and they’re very own formulated 400+ curated products, Nykaa has ventured into fashion, accessories (with over 450 local and international brands) as well as the beauty (bath and body) segment giving them an additional source of profit apart from the current channels of income.
By solely targeting the beauty and fashion-based products, Nykaa built a renowned name for itself in the market and a go-to platform for the customers. Hosting a variety of brands including high-end, luxury brands, Nykaa charges a certain percentage of commission per sale made. Soon the e-commerce invader Nykaa branched out into the omnichannel retailer with 68 offline stores in 20 cities across India, and a website traction of over 55-million monthly visits.
In a Series F fund raising round led by existing investor Steadview Capital in April 2020, Nykaa raised $13.6-million, earning itself a spot on the unicorn list with a valuation of $1.2-billion.
Having raised a total of $145.9-million from investors such as Singapore-based TPG Growth, Indian tycoon Sunil Munjal, Fidelity Management and Research Co., TVS Shriram Growth Fund, Lighthouse India Fund III, Zia Mody, and famous celebrities such as Alia Bhatt, and Katrina Kaif. Tapping into the international market with widely publicized tie-ups with Gigi Hadid, Huda Kattan, and Millie Bobby Brown to name a few.
Nykaa plans to go public either through an Indian listing or an overseas share sale at a valuation of $3-billion, raising a minimum of $500-million from Kotak Mahindra Capital Co. and Morgan Stanley. The future of the omnichannel retailer seems bright with a new venture into the men grooming and skincare range via Nykaa Men, multiple kiosks, and pop-up stores across the country.
Shop your favorite local and international products now at Nykaa! or get the Android or iOS version.