Unlike most of the Indian startups that have filed draft red herring prospectus (DRHP) with the market regulator SEBI for an initial public offering (IPO), promoters of FSN E-commerce Ventures Limited, the parent company of fashion ecommerce platform Nykaa, continue to hold over 50% of the share.
Falguni Nayar, the founder of the unicorn ecommerce platform, along with her husband Sanjay Nayar, their children Anchit Nayar and Adwaita Nayar hold 53.5% share in the startup.
When compared with other major IPO-bound startups, Paytm’s Vijay Shekhar Sharma holds 9.60% stake in One97 Communications, MobiKwik’s Bipin Preet and Upasana Taku jointly hold 34.52% in their firm.
Le Travenues operated online travel aggregator ixigo’s Aloke Bajpai and Rajnish Kumar together hold 17.97% in their firm. Recently listed Zomato’s founder held a mere 5.50% in the food aggregator platform.
The ecommerce platform’s offer include a fresh issue of shares up to worth INR 525 Cr and an offer-for-sale of equity shares upto 43,111,670 equity shares, meaning the existing shareholders will secondary sell their shares.
Founded by former investment banker Falguni Nayar in 2012, Nykaa has managed to emerge as a go-to-ecommerce platform for fashion products. The company competes against the likes of ecommerce heavyweights such as Amazon, Walmart-owned Flipkart and online grocery platform Bigbasket, among others.
Nykaa entered the coveted unicorn club last year when it raised INR 100 Cr ($13 Mn) from existing investor Steadview capital at a valuation of $1.2 Bn. It is among a handful of tech companies or startups such as MapmyIndia, ixigo and CarTrade that are profitable and are going to try their fate in the public sector.
As per the DRHP, Nykaa posted a profit of INR 61.9 Cr in FY21 as against a loss of INR 16.3 Cr in FY20. The ecommerce platform had posted a loss of INR 24.5 Cr in FY19.
The 2012 founded startup saw its total income swell to INR 2,452.6 Cr in FY21, a 37.9% rise from INR 1,777.8 Cr in FY20. In terms of expenses, Nykaa posted an INR 2,377.2 Cr in FY21, a 32.7% increase from INR 1,790.2 Cr in FY20. Purchases of traded goods contributed the highest in terms of total expenses to the tune of INR 1,495.6 Cr in FY21.
As per the DRHP, Falguni Nayar, her husband Sanjay Nayar along with Falguni Nayar Family Trust and Sanjay Nayar Family Trust, are the promoters of the IPO-bound Nykaa.
Sanjay Nayar Family Trust which is acting through its trustees Falguni and Sanjay Nayar will be offloading up to 4,800,000 shareholders equity shares. Other major shareholders who will be offloading their shares are TPG Growth to offload up to 5,421,510 equity shares, whereas Lighthouse India (Lighthouse India Fund III + Lighthouse India III employee trust) to sell their shares up to 4,896,150 equity shares.
Yogesh Agencies & Investments Private Limited and JM Financial and Investment Consultancy Services Private Limited will be selling up to 2,538,450 and 914,000 equity shares respectively.
As per the DRHP, Promoters Sanjay Nayar Family Trust is the largest shareholder in the IPO-bound Nykaa holding 25.38% stake, followed by Falguni Nayar Family Trust with 22.04% stake.
Their children Anchit Nayar and Adwaita Nayar Family Trust hold around 3.04% stake in the startup each. Overall, the above-mentioned Nayar Family Trust is holding equity shares through its trustees – Falguni Nayar and Sanjay Nayar. This means that both Falguni and Sanjay Nayar hold 53.5% stake in FSN E-commerce.
Harindarpal Singh Banga, Chairman of The Caravel Group along with his wife Indra Banga, are the second-largest shareholders after the Nayar family, with 8.60% share in the startup.
While Hero Enterprise chairman Sunil Kant Munjal holds 4.48%, Ambuja Cements chairman Narotam Sekhsaria owns 3.61% in the startup.
Steadview Capital owns 3.46%, TPG Growth 3.44%, Lighthouse India 3.07%. A total of 15 shareholders hold 413,326,890 equity shares which accounts for 87.34% shares in Nykaa.