The company’s valuation of over Rs 5000 crore is a jump of around 70% from when it raised capital last year.

Nykaa raises Rs 100 cr funding led by TPG Growth valuation soars to over Rs 5000 cr
Atom Fund Raising Tuesday, April 02, 2019 - 09:51
Written by  S. Mahadevan

Nykaa, the online skincare and beauty startup has raised Rs 100 crore. The investment in this round has been led by TPG Growth, from the TPG Capital stable. While this investment is meant to be in the form of primary capital, there are reports that Nykaa is in talks for infusion of capital through dilution of some secondary stake sale as well. Investors like Steadview capital could also be picking up these secondary deals.

The interesting outcome from this funding round for Nykaa is that its valuation has cross the Rs 5,000 crore mark. This is a substantial leap in valuation from the previous exercise when the startup was in the market for funds. The enhancement in valuation is as much as 70%.

Nykaa has managed to carve out a niche for itself in the products it is present it while competing with the multi-products giants like Amazon and Flipkart. Both the leading ecommerce players are betting big of late on the grocery and fresh foods categories too.

Nykaa is also introducing new verticals within its product line, like Nykaa Man and Nykaa Pro. As you can guess, Nykaa Man will cover the personal grooming products for men and the Pro vertical will concentrate on the consumers of cosmetic and beauty products as professionals rather than being direct users themselves.

The other activity the company is keen on is to expand its offline presence. Nykaa already has 35 outlets operating in the brick & mortar model and this number is sought to be doubled by this time next year. Nykaa’s revenue too, is likely to double to Rs 1,200 crore in the financial year that just closed yesterday. The last financial year closed at Rs 570 crore.

Like most trading platforms, Nykaa has also developed its inhouse and private labels, which offer them a much higher profit margin than selling other popular brands at fixed retail margins. The startup is now poised to selling many of these products in third part retail outlets.

Nykaa Fashion, the foray into the apparel segment is another feather in its cap. Nykaa employs the social media effectively to build and expand its business. In terms of attracting investments, the startup has got Rs 355 crore till date from investors.

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