Mumbai-based beauty marketplace Nykaa is raising additional funds in its ongoing funding round from existing investor Sunil Kant Munjal, one of the founder promoters of the Hero Group.
According to the ministry of corporate (MCA) filings accessed by Inc42, Nykaa’s parent company FSN Ecommerce Ventures Private Limited decided to create, offer, issue and allot fresh equity shares on preferential basis to Munjal in a meeting on May 22.
The filings show that the company is raising INR 19.6 Cr from Munjal. As part of the offer, Nykaa is issuing 32,350 equity shares to Munjal at a price of INR 6050 per share with a nominal value of INR 10.
Prior to this, Munjal, who is one of the early backers of Nykaa, had participated in Nykaa’s INR 165 Cr Series D funding round.
Last month, Nykaa raised INR 167 Cr from its existing investor Asia-focused hedge fund Steadview Capital in two different tranches. The company is also in the process of raising additional INR 26.6 Cr from Lexdale.
Founded by Falguni Nayar in 2012, Nykaa started as an online marketplace for beauty and wellness products. However, since 2015, Nykaa has also grown its offline presence in the country with a current footprint of around 55 stores, housing luxury brands such as Tom Ford, Jo Malone London, Dior and Givenchy.
As of now, Nykaa currently offers over 1K brands and 100K products online. The company has 55 stores across 20 cities for Luxe, On Trend and Kiosks. Currently, Nykaa is also selling face masks, sanitizers and other essential products on the online marketplace.
Moreover, in the financial year 2019, the company’s revenues grew 1.08X with 99% increase in expenses, thus leading to an overall profit of INR 2.31 Cr. The company is yet to post the revenues for the financial year 2020 which ended on March 31, 2020.
In the last two months, Nykaa’s business must have suffered heavy losses as the lockdown shut its retail stores and limited online business to only essential products. However, the government has finally announced ‘Unlock 1.0’ and has allowed all the retailers, even in the mall, to restart their operations while the home ministry had already reinstated ecommerce operations in the country last month.