Nykaa achieved revenues of 570 crores for FY 17-18 and has been EBITDA positive for two quarters in a row. The retailer is on a path to 100% revenue growth in the current financial year. In this new phase of growth Nykaa will look to expanding its portfolio with the launch of exclusive brand partnerships and increasing its offline footprint to 90 stores across India by 2020. Nykaa has also introduced new verticals including Nykaa Design Studio, a curation of premium Indian fashion designers, Nykaa Man – a men’s grooming offer and Nykaa Pro – a portal for professional beauty consumers. In March 2018 Nykaa also launched Nykaa Network – a community for encouraging consumers to engage and create beauty conversations, which today has already built a user base of 300k followers.
“We are excited to welcome Lighthouse to our shareholder base as we launch into our next phase of growth. We believe they will bring to bear their expertise in the retail sector propelling Nykaa to even greater heights. Over the past six years, our customers have come to trust brand Nykaa with our focus on bringing the best products, content and shopping convenience together. As we add new verticals and product categories we will continue to build on meaningful experiences that engage and delight our customers,” shared Falguni Nayar, founder & CEO, Nykaa.com. Mr. Sean Sovak, co-founder of Lighthouse, added, “We are truly thrilled to become a shareholder in Nykaa. What Falguni and team have created is nothing short of brilliant, completely disrupting the personal care market in India, by focusing on ease of access and superior customer experience. We are excited by the opportunity ahead for the company.”
This transaction earmarks the attractive exit for TVS Shriram Growth Fund, which invested in Nykaa in 2015 and 2016 as part of the Series B and Series C fund raise.
Founded in 2012 by Indian entrepreneur Ms. Falguni Nayar, Nykaa was created with a vision of providing a carefully curated range of products for every beauty solution. Derived from the Sanskrit word ‘Nayaka’ meaning one in the spotlight, it rest on three ideals – curation, content and convenience. Nykaa currently has a portfolio of 1000+ brands across makeup, skincare, haircare & wellness offering a one-stop, personalized product availability and solutions to consumers across India. The Nykaa website and app welcome over 30 million visitors per month, of which 60% are loyal repeat customers. Nykaa has created an engaged community of beauty enthusiasts across India, emerging as a leading beauty influencer through conversations on social media, emails, videos and beauty blog. The use of cutting edge artificial intelligence and machine learning tools allows Nykaa to create a personalized beauty regime for each customer. The retailer has also been operating on an omni channel model and currently has 21 stores across the country in two formats – Nykaa Luxe and Nykaa On Trend. In 2015, it launched its private label collection offering cosmetics, naturals, bath and body and fragrances under this brand.
Lighthouse is a leading private equity firm focused on growth investments in India’s consumer sector. The firm’s current and past investments include Bikaji Foods, FabIndia Overseas, Cera Sanitaryware, Capital Trust, Tynor Orthotics, Suraksha Diagnostic, Dhanuka Agritech, Indian Herbs, Kama Ayurveda, Unibic Foods, V2 Retail and XSEED Education. For more information, please visit www.lhfunds.com.
(As published in https://www.indiaretailing.com on Wed, September 05 2018. )