Nykaa will be acquiring 18.5% stake in skincare brand Earth Rhythm for INR 41.65 Cr
It is acquiring 60% stake in Nudge Wellness for INR 3.6 Cr
Nykaa will also be acquiring brand KICA to strengthen its undergarment and sleepwear for women
Mumbai-based ecommerce giant Nykaa, which is operated by FSN E-commerce, is acquiring stake in three D2C brands – Earth Rhythm, Kica, and Nudge Wellness. The company disclosed the investment in a letter to the market regulator SEBI.
Falguni Nayaar-led Nykaa will acquire an 18.5% stake in Gurugram-based skincare and haircare brand Earth Rhythm for INR 41.65 Cr. The D2C brand offers various types of shampoos, skin moisturisers, balms on its website. Earth Rhythm had last raised $1.2 Mn from Anicut Angel Fund in July 2021. The D2C brand’s revenue stood at INR 18.5 Cr in FY22.
Nykaa is also acquiring a 60% stake in Nudge Wellness for INR 3.6 Cr. Nudge Wellness is operated by Onesto Labs, which also houses other D2C brands such as Chemist at Play and Bare Anatomy. With this acquisition, Nykaa will foray into sales of dietary supplements. It must be noted that Falguni Nayar’s husband Sanjay Nayar’s family office 72 Ventures invested in Onesto Labs last year.
It will also acquire women’s clothing brand KICA, through Nykaa Fashion Private Limited, from Aneesha Labroo for INR 4.51 Cr. The acquisition will further strengthen Nykaa’s product portfolio under its brand name Nykd.
Founded by former investment banker Nayar in 2012, Nykaa has emerged as the go-to-ecommerce platform for fashion products. It competes with heavily-invested companies such as Amazon, Myntra, Flipkart, Big Basket.
Nykaa, one of the few profitable startups, went public last year and made its debut on stock exchanges. The startup currently offers 4,000 brands and over 3.1 Mn product SKUs.