VC firm Max Ventures and Industries has reportedly acquired a 2% stake in online cosmetic and wellness retailer Nykaa, for an undisclosed amount.
As per a BSE filing, Max I Ltd (a wholly-owned subsidiary of Max Ventures and Industries Ltd) has acquired 2,69,955 shares of INR 10 each of FSN ECommerce Ventures Private on December 8, 2016, which represents its 1.99% equity capital. FSN is in the business of selling cosmetic products, personal and home accessories to consumers in India through ecommerce platform Nykaa.
Nykaa was launched in 2012 by Falguni Nayar, former MD at Kotak Mahindra Capital investment banking, with her husband Sanjay Nayar, CEO at KKR India. It claims to have over 400 curated brands and 35,000 products. It offers a comprehensive selection of makeup, skincare, hair care, fragrances, bath and body, luxury and wellness products for women and men.
Prior to this in October 2015, it raised around $9.5 Mn funding from various investors that included the family offices of Marico Industries Chairman, Harsh Mariwala, Atul Nishar (Hexaware Technologies founder and Chairman), Dalip Pathak (former India and Europe head of Warburg Pincus), and Michael Carlos (ex- president of Swiss fragrance maker Givaudan).
According to a report by ET, Nykaa is aiming to close this fiscal year with sales of $47 Mn (INR 320 Cr.)
Earlier in June 2016, Nykaa tied up with spa and salon services in Mumbai, Pune and Bengaluru, and plans to feature cosmetology and wellness packages, along with launching costume jewellery and fitness wear.
In September this year, it raised $12 Mn (INR 82 Cr) in a fresh round of fundraising led by Hero MotoCorp MD Sunil Munjal and the Mariwala family (Marico).
In India, Nykaa competes directly with Purplle.com and larger ecommerce players like Amazon, Flipkart, Snapdeal, Grofers etc.
