Nykaa Records Another Profitable Year With INR 1,860 Cr Revenue

Omnichannel lifestyle retailer Nykaa has 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 exit was facilitated by Boston-based asset management company Fidelity Management & Research Company LLC, which made an undisclosed investment in the beauty and fashion unicorn.

Commenting on the same, founder and CEO Falguni Nayar said, “We are very excited to have Fidelity, one of the largest asset managers in the world, to join as a partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model. Nykaa’s focus on business sustainability and corporate governance further supports such strong investor confidence.”

The company had recently raised an undisclosed amount from Bollywood actors Alia Bhatt and Katrina Kaif. Prior to this, the company had raised INR 167 Cr from Steadview Capital in two different tranches in May 2020. It has also raised INR 100 Cr from American private equity firm TPG Growth and valued at $724 Mn post the round in April 2019 and $15.72 Mn from Lighthouse India Fund III.

Founded by Nayar in 2012, Nykaa is an online marketplace for beauty and wellness products. The company started its offline operation in 2015 and currently has over 70 stores, housing luxury brands such as Tom Ford, Jo Malone London, Dior and Givenchy. Now, the company plans to expand into 40 more in the coming years. It claims to have been fulfilling nearly 1.5 Mn orders a month, offering over 1.5K brands and 130K products.

The company’s operational growth has led to profitability in the FY2019. It had recorded a revenue of INR 1,160.98 Cr and an expenses of INR 1,157 leading to a profit of INR 2.31 Cr in FY2019. 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,” Nykaa said in a press statement.