Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering

Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering

SUMMARY

The company recorded a revenue of INR 1,860 Cr with an EBITDA of INR 94 Cr for the financial year 2020

As a mandatory process before filing the DRHP, the startup recently converted itself into a public company

At present Nykaa boasts of 15 Mn registered users and delivers 1.5 Mn orders per month

Lifestyle ecommerce platform Nykaa has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to raise INR 4,000 Cr via an initial public offering (IPO).

As a mandatory process before filing the DRHP, the startup recently converted itself into a public company. As per a regulatory filing, the equity shareholders of the startup in a meeting on July 16 have passed a resolution to change the name of the company from FSN E-Commerce Ventures Private Limited to FSN E-Commerce Ventures Limited. 

The company in its filing said that it is proposing to undertake an initial public offer of its equity shares of face value of INR 1 each by way of fresh issuance of equity shares along with an offer of sale from existing and eligible shareholders.

Founded by former investment banker Nayar in 2012, Nykaa has managed to emerge as a go-to-ecommerce platform for fashion products. The company competes against the likes of heavily invested companies such as Amazon, Myntra, Flipkart, Big Basket, among others. 

The Mumbai-headquartered startup entered the unicorn club in December last year after it raised around $13.6 Mn from its existing investor Steadview Capital. The funds were raised as part of Nykaa’s Series F funding round. The startup to date has raised a total of $70 Mn from investors such as TPG Growth, Lighthouse Funds, and Fidelity Management and Research Company, among others. The startup has also acquired Pipa.Bella earlier this year and 20Dresses in 2019.

Nykaa has turned profitable in FY19 when it recorded a revenue of $159 Mn. The startup’s expenses clocked at $158.6 Mn leading to a profit of $316K in FY2019. It maintained the same growth in FY2020 as well, with revenues increasing 60% to $254 Mn. At present Nykaa boasts of 15 Mn registered users and delivers 1.5 Mn orders per month.

The company recorded a revenue of INR 1,860 Cr with an EBITDA (earnings before interest, taxes, depreciation, and amortisation) of INR 94 Cr for the financial year 2020, the company said while announcing the partial exit for its early-stage investors and employees.  The company also claimed that its revenue is projected to grow around 40% on a consolidated level for FY2021.

“Nykaa is appropriately positioned to benefit from the recent tailwinds that have supported sales for predominantly online businesses. The combination of accelerated consumer activity online, and overall brand performance for Nykaa has boosted its market share in the beauty business as well as jump-started growth for its fashion platform,” the company earlier said in a press statement.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering-Inc42 Media
Nykaa Files DRHP With SEBI For INR 4,000 Cr Initial Public Offering-Inc42 Media
You’re in Good company