Nykaa Raises $14 Mn In Series E Funding Round Led By TPG Growth

SUMMARY

The company has raised a total funding of $93.02 Mn till date

Nykaa is a fashion and beauty ecommerce platform launched in 2012

The company had recorded over $86.09 Mn (INR 570 Cr) in net revenue in FY18

Mumbai-based fashion and beauty ecommerce platform, Nykaa, has raised $14 Mn (INR 100 Cr.) funding from an American private equity firm TPG Growth. This new round brings the company’s total funding to $93.02 Mn till date.

Commenting on the fund, founder of Nykaa, Falguni Nayar said, “We believe TPG’s expertise will help us continue to strengthen the Nykaa playbook. As we look for new ways to serve our customers through initiatives like physical retail, Nykaa Man and Nykaa Fashion, our growth momentum will continue to remain strong in the coming years.”

Last month, there were reports that the company may raise $30 Mn (INR 213.5 Cr) from private equity firm TPG Capital.

According to a data intelligence platform paper.vc, this funding round will take Nykaa’s valuation to $724 Mn.

Earlier in September 2018, 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. The seven year old company has grown to be EBITDA-positive in the last two quarters (Q2 and Q3). It also claims to be on track to grow 100% in revenue in FY19, potentially taking it beyond the $140 Mn (INR 1,000 Cr) revenue mark.

With 40Mn customer visits per month, Nykaa currently offer over 1K brands and 100K products online. The company has 35 stores across 15 cities in two formats Nykaa Luxe and Nykaa On Trend. In 2018, Nykaa had also launched the fashion vertical Nykaa Fashion to bring the together the selected Indian designs and trend-led content.

Since 2015, Nykaa has also grown its physical store presence in the country with a current footprint of 35 stores across 15 cities housing luxury brands such as Tom Ford, Jo Malone London, Dior and Givenchy.

The company has also expanded its target customer base with the launch of new section for men called Nykaa Man and expects it to contribute about 2% to the company’s overall revenue. In addition to this, Mumbai-based startup had also launched Nykaa Network, which is a community for encouraging consumers to engage and create beauty conversations.

Nykaa recorded over $86.09 Mn (INR 570 Cr) in net revenue in FY18 from $32.32 Mn (INR 214 Cr) a year earlier.

Another Mumbai-based online beauty products marketplace Purplle had raised $2.57 Mn(INR 17.5 Cr) from a group of investors in June 2018. While a grocery delivery startup BigBasket announced its official foray in online beauty market in January 2019.

According to RedSeer Consulting, Indian online beauty and personal care market is expected to cross $3.5 Bn by 2022 as the leading companies continue to attract major customer attention and celebrity touch to increase their offline appeal.