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Nykaa raises $9M from TVS Capital and various investors

beauty

Nykaa, an online beauty products store, has raised a little above $9 million (Rs 60 crore) in funding led by TVS Capital with participation from Harsh Mariwala, Atul Nishar, and Dalip Pathak through their family offices along with Michael Carlos, reports ET. Narayan Ramachandran, who has been nominated by TVS Capital, will join Nykaa’s board.

Nykaa will use the funds for expanding its private label, marketing, hiring and consumer acquisition. It has plans to increase its GMV run rate to over Rs 100 crore by the end of this year, with plans to open 3-4 more stores in Delhi, Mumbai and Bangalore. After launching the private label products recently, the company expects a contribution of 15-20% of sales from them going forward. The company claims to have sold 1.25 million products so far, with an average ticket size of Rs 1,400 and gross margins of 25-40%.

In July last year, it had raised around $3 million (Rs 20 crore) from unnamed private investors. Nykaa planned to use the funding to foray into offline retailing segment by setting up its first offline store at Terminal 3 of New Delhi airport by mid-July 2014.

The company had previously raised investment from undisclosed investors including a big business family, in return for 20% stake in the company in June 2014. Nykaa told Medianama then that this was part of the Rs 20 crore investment which had been formalized. Nykaa was founded by Falguni Nayar and her husband Sanjay Nayar in 2013. Both of them had earlier invested $2 million into the company together.

Other developments in the segment:

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– In August, MSM Box, a subscription based curated beauty box service startup, raised an undisclosed amount of seed funding from Rohit Goel. The Delhi based company will use the funds to add to its technology infrastructure, scale product development and on overall expansion.

– In June, Ratan Tata invested an undisclosed amount in women’s fashion formal wear portal Kaaryah. The portal is looking to cater to women’s non-casual segment and offers western wear in 18 sizes and emphasizes on finding and customizing fit that can work for women’s body shapes and sizes.

– In March, Gurgaon based LimeRoad, an online shopping platform for women’s fashion and home furnishings, raised Series C funding worth Rs 185 crore led by Tiger Global, with participation from Matrix Partners and Lightspeed Ventures.

– In February, FMCG behemoth Hindustan Unilever changed the operations of its direct-selling businesses Aviance and Lever Ayush range of health and beauty products from physical servicing to an online ordering and fulfillment model.

– In January, Mumbai-based online beauty products shop Purplle.com raised an undisclosed amount in Series A funding from IvyCap Ventures with participation from existing investor Blume Ventures. The company had earlier raised funds from Blume Ventures, Chennai Angels and Mumbai Angels in August 2013. It had also raised seed investment from unnamed angel investors in March 2012.

–  In June last year, FashionAndYou raised $10 million from Sequoia Capital, Smile Group, Norwest Venture Partners, Intel Capital and Nokia Growth Partners. The company planned to use this investment to strengthen its technology, build the brand and acquire more customers. FashionAndYou claimed then that women shoppers contribute to 70% of their sales.

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– 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.

– Ecommerce players like Flipkart, Snapdeal and Amazon also offer cosmetics and beauty products.

Image Credit: Flickr user goatling

Written By

I'm a MediaNama alumna from 2015-16 (remember TinyOwl?) now back to cover e-services like food and grocery delivery, app based transport and policies, platforms and media in India.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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