Nykaa Picks Up Majority Stake In D2C Skincare Brand Earth Rhythm

Beauty and fashion ecommerce major Nykaa today (November 27) said it has completed acquisition of a majority stake in D2C skincare and beauty brand Earth Rhythm.

Though the company did not disclose the financial terms of the deal but said in a statement that it had bought the majority stake via a combination of primary and secondary transactions.

This follows Nykaa’s acquisition of an 18.6% stake in Earth Rhythm in 2022. 

With this deal, the Falguni Nayar-led company aims to tap innovation, marketing and omnichannel distribution capabilities to fuel the clean beauty brand’s growth across segments, the statement added.

The investment also aligns with Nykaa’s strategy to build a house of brands portfolio, which includes Kay Beauty, Nykaa Naturals, Nykaa Cosmetics and Wanderlust.

Founded by Harini Sivakumar in 2019, Earth Rhythm makes beauty and personal care products, including lip cheek tint, shampoo bars, sunsticks and hydrating sunscreens among others. 

Focused on plastic-free packaging, it claims to offer 250 products across six categories.

“Earth Rhythm’s truly unique formulations and commitment to sustainability across the supply chain – from ingredients to packaging to processes – have struck a chord with its loyal consumer base. We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem,” said Adwaita Nayar, chief executive of Nykaa Fashion and Beauty Brands.

Founded in 2012, Nykaa has expanded its offerings to include lifestyle and B2B segments through online platforms Nykaa Fashion, Nykaa Man, and Superstore. 

Several of its private labels are listed on Blinkit, Zepto and Swiggy Instamart, which would undoubtedly have shown it what quick commerce offers. 

The company operates over 200 offline stores and has been actively expanding its brand portfolio. In September 2024, Nykaa increased its stake in Dot & Key to 90% from 51% through an INR 265.3 Cr deal. 

Nykaa’s consolidated net profit surged 66.3% to INR 12.97 Cr in the second quarter of the financial year 2024-25 (Q2 FY25) from INR 7.8 Cr in the year-ago period, as the beauty and personal care (BPC) vertical delivered strong growth. 

However, profit declined 4.9% from INR 13.64 Cr reported in the preceding June quarter.