In August 2018, Lighthouse invested USD 15.9 million in Nykaa at a USD 450 million valuation. The shares closed trading today at an equity valuation of USD 14.0 billion, after a first-day jump of 96%. As part of the IPO, Lighthouse realized USD 74 million from the sale of one-third of its holdings in Nykaa, and continues to own approximately USD 290 million of unsold shares based on today’s closing price, bringing our total value to USD 364 million. This represents a 22.9x gross multiple and 166% gross IRR in USD for Lighthouse.
Founded in 2012 by Falguni Nayar, Nykaa has emerged as India’s largest beauty and personal care (“BPC”) platform with a growing presence in the fashion space. The Company has demonstrated a unique combination of growth and profitability. The Company clocked USD 547 million of GMV in FY21, growing at 50% YoY with strong consumer engagement, very high repeat demand, and attractive growth in average order values. The Company currently fulfils over two million orders per month. Nykaa has been consistently EBITDA positive for the last three years and turned net income positive in FY21, with a robust and highly capital-efficient model. The overall BPC industry remains highly underpenetrated, and Nykaa’s consumer-centric approach, with a strong resonance amongst millennials and Gen-Z, provide it with multiple levers for continued future growth.
Lighthouse is India’s leading consumer-focused private equity investment firm, providing long-term, patient capital to the next generation of entrepreneurs. Lighthouse has invested in over 25 companies across consumer and healthcare verticals. Lighthouse’s marquee investments include leading Indian brands like Bikaji Foods, Cera Sanitaryware, Dhanuka Agritech, Duroflex Mattresses, Fabindia, Kama Ayurveda, Poly Medicure, and Wow! Momo.