Omnichannel lifestyle retailer Nykaa completed a secondary placement that facilitated partial exit for its early investors as well as an exit for employee ESOPs. This recent transaction was led by Boston-based asset management company Fidelity Management & Research Company, LLC, which made an undisclosed investment in the beauty and fashion unicorn.
Earlier this year in March, the company had also raised Rs 166 crores from Steadview Capital through a primary transaction, and which led to a valuation of over $1.2 billion.
Nykaa recorded revenue of Rs 1,860 crore for the year ending March 2020 with EBIDTA of Rs 94 crore.
â€śNykaa is appropriately positioned to benefit from the recent tailwinds that have supported sales for predominantly online businesses. The combination of accelerated consumer activity online, and overall brand performance for Nykaa has boosted its market share in the beauty business as well as jump-started growth for its fashion platform,â€ť the company said in a statement.
The companyâ€™s revenues are projected to grow at around 40% on a consolidated level for FY 2021.
Nykaa Founder and CEO Falguni Nayar said, â€śWe are very excited to have Fidelity, one of the largest asset managers in the world, to join as partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model. Nykaaâ€™s focus on business sustainability and corporate governance further supports such strong investor confidence.â€ť
Earlier in October, the company launched its Menâ€™s Fashion category on its website and app. This follows the launch of the Nykaa Man website and app in 2018, which was dedicated to menâ€™s grooming. Targeting all lifestyle shopping needs, the menâ€™s category offers clothing, footwear, eyewear, sportswear and accessories across 60+ brands including GAP, Louis Phillipe, Raymond, Adidas, Skechers, Pepe Jeans, Hidesign and more.