Omni-channel beauty and skincare retailer Nykaa has raised Rs 100 crore in fresh funding from existing investor Steadview Capital, the Mumbai-headquartered company announced late on Tuesday.
The latest round comes at a time when risk capital investment activity has almost ground to a halt, because of the spread of the Covid-19 pandemic across the globe, and which, in turn, has forced vertical e-commerce companies, such as Nykaa, to conserve cash, given the steep plunge in discretionary spending by consumers.
The new capital infusion also comes almost a year after the company, which was founded in 2012 by former merchant banker Falguni Nayar, closed a Rs 100 crore Series E financing round led by TPG Growth, the mid-market investment arm of private equity firm TPG Capital, and which valued it at about $730 million at the time.
Over the last 12-18 months, the company, which has often been referred to as the Sephora of India, had been aggressively expanding into newer categories, such as entering the men’s grooming segment, as well as launching Nykaa Pro, apart from aggressively expanding its offline retail presence as well.
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“We are very grateful to achieve this significant milestone. We deeply value the trust and support of our investors, customers and brand partners who have been instrumental to our success. In the midst of this unprecedented global crisis we are working to ensure all our stakeholders are well served and that Nykaa emerges as a leading retail player in the industry,” Nayar said in a company-issued statement.
Prior to this round, the company had raised a shade over Rs 352 crore from a clutch of investors, a list that also includes, Lighthouse Funds, KKR India, JM Financial and Max Ventures and Industries, along with a host of high-net-worth individuals, such as, Hero Enterprise Chairman Sunil Munjal and leading corporate lawyer Zia Mody, among others.
“Nykaa has transformed the beauty industry in India and has established a very strong brand. We believe the company is poised for a strong growth trajectory in the years to come. The company’s focus on customer service and capital efficiency stands out in the Indian e-commerce space,” Ravi Mehta, founder of Steadview Capital, said in the official statement.
For the financial year ended March 31, 2019, the company’s revenue stood at Rs 1,228.8 crore, Tracxn data shows, up from Rs 578.08 crore in the previous fiscal. The post-tax loss of the company stood at Rs 21.08 crore at the end of March 31, 2019, as against a loss of Rs 28.18 crore for the previous financial year.
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