Your browser is currently blocking notification.
Please follow this instruction to subscribe:
X
Notifications are already enabled.
X

Nykaa Gets Second Cheque In Two Months From Steadview Capital

Nykaa Gets Second Cheque In Two Months From Steadview Capital

Nykaa has raised INR 67 Cr from Steadview Capital

Nykaa issued 1,09,986 equity shares at Rs 6,049.56 per share

Last month Steadview Capital pumped INR 100 Cr in Nykaa

Mumbai-based Nykaa has raised INR 67 Cr from its existing investor Asia-focused hedge fund Steadview Capital. The fresh funding is different from the INR 100 Cr funding which came last month for the fashion and beauty ecommerce platform.

According to the ministry of corporate affairs (MCA) filings, Nykaa’s parent entity FSN E-commerce Ventures has issued 1,09,986 equity shares at Rs 6,049.56 per share to Steadview Capital Mauritius Ltd on April 28. The deal was alerted by business intelligence platform Tofler.

With the latest funding, Steadview Capital has now invested around INR 170 Cr in the company to get 3% of the shares of Nykaa, according to a report by ET. Besides Nykaa, Steadview Capital had invested in companies like Flipkart, INDWealth, LogiNext, Unacademy, BharatPe, among others.

Previously, Nykaa raised INR 100 Cr from American private equity firm TPG Growth, and valued at $724 Mn post the round in April 2019. Prior to that, Nykaa had raised $15.72 Mn (INR 113 Cr) from consumer-focused private equity manager’s Lighthouse India Fund III.

Founded by Falguni Nayar in 2012, Nykaa is an online marketplace for beauty and wellness products. Since 2015, Nykaa has also grown its physical store 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.

According to a report by RedSeer Consulting, Indian online beauty and personal care market is expected to cross $3.5 Bn by 2022. In this segment, Nykaa competes against the likes of Purplle and Scentials.

As of now, most of the offline stores of Nykaa are shut due to the ongoing lockdown while the government had restricted ecommerce only for the delivery of essential items till May 3. However, Nykaa must be eying a comeback as the government has now allowed the delivery of non-essentials in orange and green zones.

Responding to the situation, 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.”

Moreover, the recent two tranches of funding from Steadview Capital might help the company to mitigate the impact of losses faced during the lockdown. At the same time, Scentials is also raising INR 2 Cr from Ambiga Subramanian and INR 1 Cr from Goutham Ekollu.