Cosmetics and beauty e-commerce platform Nykaa has raised Rs 75 crore funding in a new round, reports Economic Times. The company, ET says, is being valued at almost Rs 3,000 crore. This is the fourth round of funding for the online retailer, which was was a mix of primary and secondary transactions bringing Rs 95 crore to existing shareholders.
Nykaa sells makeup, skincare, hair care, fragrances, bath and body, and other beauty/wellness products for women and men online. It claims to offer over 80,000 products across 700 brands on its online portal. The company was started in 2012 by former investment banker Falguni Nayar. According to Nayar, the company is currently at Ebitda-breakeven and intends to be profitable by FY19.
Previous investors in the company include Max Ventures, Munjal Family Office, Yogesh Mahansaria and Harsh Mariwala. Economic Times reports that at least three investors may have sold part of their stakes in this round, including TVS Capital Funds, which invested in Nykaa in 2015.
While it began as an online retailer, Nykaa has also ventured in offline selling through physical stores. The current count of stores for the brand is 11, and it plans to take that to 30 by 2020. Part of the investment will be used to expand the offline footprint.
Before this, Nykaa raised Rs 100 crore in 2016 from Max India, the Sunil Munjal family office and Harsh Mariwala. In 2015, it had 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.
In 2014, it received Rs 20 crore through undisclosed private investors which included high net worth individuals (HNIs) and NRIs.
Big e-commerce players Amazon, Flipkart, Jabong, Myntra have verticals for beauty and wellness products, but Nykaa’s offering is far more differentiated and specific to types of products and skin/beauty issues.
In the beauty/wellness online space, Nykaa competes with Purplle.com, Slassy.com, Aplava.com, among others, however, it is currently the market leader in the segment.