Nykaa is one of the biggest e-commerce platforms that deals in beauty, cosmetics, wellness, and fashion products.
The company deals in selling the products through its official website, mobile application and over 76 offline stores spread all across the states and union territories of the country. Nykaa offers products of over 4,078 beauty and fashion brands along with a support of 3.1 million products kept under Stock Keeping Units (SKUs).
The startup company got involved in its first acquisition by acquiring the popular skincare brand Dot and Key. The brand founded by Suyesh Saraf and Anisha Saraf deals in producing and selling skincare products such as serums, face masks, toners, cleansers, moisturizers, sunscreen, lip care masks, and many more. The brand recently and went into expanding its business by introducing ‘nutraceutical’ under the brand ‘IKWI’.
The IKWI brand’s products are claimed to be dermatologically tested and cruelty-free. The founder Suyesh Saraf believes that Dot and Key was created to cater to customers needs and preferences, and considering Nykaa’s position in the current market scenario with this position of their brand Nykaa will help Dot and Key to prosper and reach greater heights by exploring a wider range of customers and various other markets which are not just restricted to skincare products. He says, ‘‘Nykaa’s resources will allow Dot and Key to growing from further as a brand and scale to the next level.’’
From in-house brands to drugstore based cosmetic brands to high-end luxury brands, Nykaa has covered and backed beauty, skincare, cosmetics, and fashion products from all price ranges to satisfy the needs and preferences of all of its customers. Nykaa cosmetics comprise of cosmetics and fashion products like in-house brands such as Nykaa naturals, Kay beauty (partnered along with Katrina Kaif), Nykd by Nykaa, 20 dresses, that are loved by people from all across the country.
Nykaa’s makeup and cosmetic stores also comprise high-end luxury brands that are less readily available in India such as Huda Beauty, MAC, Dior, etc. Not only these brands but Nykaa is the only dealer that sell international brands such as Charlotte Tilbury, Becca, Dermalogica, and many more.
Nykaa recently got into blogging introducing beauty and fashion videos on its official YouTube channel along with partnering with famous beauty and fashion video producers and influencers along with its brand ambassador Jahnvi Kapoor.
The Chief Executive Officer (CEO) Falguni Nayar believes that Dot and Key’s exclusive and exciting product range widens Nykaa’s brand reach to a wider range of customers and looks forward to exploring the nutraceutical market space as well. She went on to say, ‘‘we are excited to bring in Dot and Key in time to serve the high demand of high-quality skincare by Indian customers.’’
The start-up founded by Falguni Nayar became a unicorn startup in the year 2020 with a valuation of ₹85 billion. The company also received an undisclosed amount of investment from the popular actresses Katrina Kaif and Alia Bhatt through secondary funding.
Nykaa’s parent company, FSN E-commerce Ventures LTD. recently got the Security Exchange Board Of India (SEBI)’s a nod for launching its Initial Public Offering (IPO). The company plans to launch the IPO on 28th October 2021 to raise as much as ₹5,200 crores. The issue of stocks is said to be a mixture of ₹630 crores in fresh stocks along with an offer for sale of 41.3 Million by existing shareholders and investors.
The IPO is said to shut down on 1st November 2021. The unicorn is also said to undertake an anchor placement on 27th October 2021 of ₹2,340 crores. The promoter of the brand Sanjay Nayar Family Trust is looking forward to selling 4.8 million of their stakes of the company. The key investors of the brand Sunil Kant Munjal, Light House India Fund, Mala Goankar are said to sell their high amounts of stocks of the unicorn.
However, the founder Falguni Nayar is believed to continue to on the majority stake in the brand even after the IPO. She is currently the owner of more than 53% of stakes in the brand Nykaa and its parent company, FSN E-commerce Ventures LTD.
Nykaa is said to be one of the most popular and successful e-tailers in India. The brand reported a net profit of ₹61.96 crores at the end of the fiscal year in March 2021. The unicorn faced a net loss of ₹16.94 crores in the previous fiscal year but experienced a rise in the revenue and income of 38% in the financial year 2022-2021.
Earlier, the brand was said to launch its IPO and use the funds as many as 130 crores to repay their pending debts along with an approximate amount of ₹200 crores for the marketing and advertising of their brands.
Edited by Anupama Roy