The digital beauty and private care marketplace in India is estimated worth Rs 6,000 crore.
Hero Enterprises’ Sunil Kant Munjal-backed omnichannel retailer of beauty and wellness goods Nykaa has raised an undisclosed investment from Boston-primarily based asset management firm Fidelity Management & Research, the firm announced on Thursday. The funding has been created by means of a secondary transaction that facilitated partial exit to its early investors and exit for employee ESOPs. Launched in 2015 by the former managing director at Kotak Investment Banking — Falguni Nayar, Nykaa had raised Rs 25 crore from TVS Shriram Growth Fund in 2015. Its angel investors integrated corporate lawyer and Founder and Managing Partner of AZB & Partners Zia Mody who place Rs 1 crore in 2014. Other investors integrated TPG Growth, Lighthouse Funds, Sharrp Ventures, Steadview Capital, Bollywood actors Katrina Kaif and Alia Bhatt.
Nykaa had raised Rs 166 crores from Steadview Capital in March this year that valued the firm at much more than $1.2 billion. It recorded Rs 1,860 crores in revenues for FY20 with EBIDTA of Rs 94 crores. The firm mentioned its revenues are most likely to develop at about 40 per cent on a consolidated basis for FY21. “Their investment in a private company in India is testament to the strength of our brand and business model,” mentioned Nayar. Nykaa’s income from operations jumped to Rs 1,159.32 crore in FY19 from Rs 555.10 crore in FY18 and had turned lucrative in FY19 with Rs 2.3 crore in net profit.
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While Nykaa straight competes with Purplle, it also has horizontal players such as Amazon and Flipkart apart from LimeRoad and Myntra in the style e-commerce category amongst its competitors. The firm had a development price of 78 per cent in FY19 compared to the preceding year, as per Statista. The digital beauty and private care marketplace in India is estimated at Rs 6000 crore with 6 per cent share in the general marketplace, according to RedSeer. The Indian cosmetics marketplace is most likely to develop from $6.5 billion in size in 2017 to about $20 billion by 2025 at a CAGR of 25 per cent when the worldwide marketplace will be about $450 billion by 2025.