Nykaa Bags INR 100 Cr From Steadview Capital With Operations On Pause

Mumbai-based fashion and beauty ecommerce platform Nykaa, on March 31, announced that it has raised INR 100 Cr from its existing investor Steadview Capital. Avendus Capital was the advisor for this fundraising.

Talking about the latest fundraise, Nykaa founder and CEO Falguni Nayar, said, “in the midst of this unprecedented global crisis we are working to ensure all our stakeholders are well served and that Nykaa emerges as a leading retail player in the industry.”

Nykaa also informed its vendors that its cash flow has been impacted due to the temporary suspension of its operations and there will be a delay in making payments of the outstanding invoices. The company highlighted that its services are temporarily suspended and it has also shut down its retail stores, corporate offices and warehouses to comply with the directives issued by the health department and government bodies in a bid to tackle the coronavirus.

“The lockdown has already impacted business across industry, and this will have significant impact on the business cycle including cash conversion cycle. Like all consumer-facing businesses, we now face a situation where our cash flow and income are impacted, but on the other hand, our expenses remain constant. In light of this, we find it prudent to update you that there will be a delay in making payments of outstanding invoices to all vendors and partners,” Nykaa told the All India Online Vendors Association, in an email. The email was accessed by the Mint.

Coincidently, Nykaa had announced its last funding raising on the same day last year. Nykaa raised INR 100 Cr from American private equity firm TPG Growth, and valued at $724 Mn post the round. Prior to that, Nykaa had raised $15.72 Mn (INR 113 Cr) from consumer-focused private equity manager’s Lighthouse India Fund III.

Meanwhile, Nykaa’s website shows that it has decided to prioritise orders and only take up orders for essential items — bathing essentials, menstrual supplies,  oral care products, home needs, face masks, intimate hygiene essentials, moisturisers and more.

Nykaa has clarified that there will be delay in the deliveries and that it is only accepting prepaid orders for select pin codes in Mumbai, Pune, New Delhi, and Bengaluru. The company hopes to start its services in other cities as well.