Online beauty products store Nykaa has raised Rs 20 crore through undisclosed private investors which includes high net worth individuals (HNIs) and NRIs.
The company had previously raised investment from undisclosed investors including a big business family, in return for 20% stake in the company last month. Nykaa told Medianama that this is part of the current Rs 20 crore investment which has been formalized now.
Nykaa plans to use these funds to improve its marketing initiatives and introduce new technologies. It is also foraying into offline retailing segment by setting up its first offline store at Terminal 3 of New Delhi airport by mid-July.
From the looks of it, this store essentially seems like a kiosk which will allow consumers to check out the products and order products online through interactive screens. Nykaa CEO Falguni Nayar however notes that going forward, it will be offering products across multiple channels including desktop, mobile and brick-and-mortar stores.
Nykaa was founded in 2012 by Nayar and her husband Sanjay Nayar who is the India CEO of the private equity firm KKR (Kohlberg Kravis Roberts). Both of them had earlier invested $2 million into the company together.
Nykaa currently offers beauty and wellness products across various categories like makeup, skin care, hair care, bath & body products, perfumes, colognes, and herbal products among others. It claims to offer products from more than 200 brands like Ponds, Dove, Gillette, Johnson & Johnson, L’Oréal, Garnier, Maybelline, Lakme, Revlon, Esprit, Jaguar, Axe, Braun and Park Avenue among others.
Other players in this segment include Purplle.com which had raised an undisclosed amount of investment in Series A funding from Blume Ventures, Mumbai Angels and Chennai Angels in August last year, Bangalore-based VioletBag and Mumbai-based Beautykafe.com.
Mumbai-based Fab Bag (previously Vellvette) also offers a subscription based cosmetics service and had raised $500k from India Quotient and angel investors Nitin Agarwal and Siddharth Ladsariya in Feb 2013. Besides this, e-commerce ventures like Flipkart, Snapdeal, Myntra, Jabong and Homeshop18 also offers cosmetics.