Lifestyle and fashion e-tailer Nykaa is looking at an initial public offer (IPO) of $3 billion by listing on the stock exchange towards the end of this year, according to reports. The IPO by Nykaa will reportedly be the first by an online beauty marketplace in India.
Nykaa, which was founded eight years ago, is inclined towards a domestic listing, although an overseas share sale is also being considered, according to a Bloomberg report.
In November last year, the Mumbai-based company had raised an undisclosed amount from Fidelity Management & Research Company, LLC through a secondary placement that facilitated a partial exit for for its early investors and employees.
Earlier in March 2020, Nykaa had also raised Rs 166 crore from Steadview Capital through a primary transaction at a valuation of over $1.2 billion.
Nykaa founder and CEO Falguni Nayar had said in 2018 that the company would look for an IPO by around 2020.
“Nykaa will most likely look at achieving overall profitability this year before going public. Considering the boost in business after the lockdown and consumer shift towards digital, the company might look at a listing of much more than $3 billion in valuation," a source told LiveMint.
Nykaa, meanwhile, has declined to comment on the proposed IPO.
Post the Fidelity transaction, the company had said that its revenues are projected to grow at around 40% on a consolidated level for FY 2021.
Lighthouse Advisors and TPG Capital are among the other investors in Nykaa.
Nykaa will join companies like Flipkart, Zomato, Grofers and Pepperfry, among others which are also planning to go public soon.
The lifestyle platform has more than 1,200 brands, ranging from makeup to health supplements, listed on its website and claims to log 55 million visits a month.
Nykaa is pushing aggressively for its fashion category, which was launched in 2018. In October last year, the company launched its Men’s Fashion category on its website and app. This followed the launch of the Nykaa Man website and app in 2018, which was dedicated to men’s grooming.