- Nykaa used to be known as FSN E-Commerce Ventures.
- Nykaa plans to use the funds from the IPO to open new retail stores.
- In 2012, Falguni Nayar, an alumnus of IIM Ahmedabad founded Nykaa.
Nykaa, a beauty-focused e-commerce platform, has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (Sebi) in order to raise funds through an IPO (IPO).
Nykaa’s owner, FSN E-Commerce Ventures Ltd, is trying to raise Rs525 million through a fresh share issuance and an offer for sale (OFS) of up to 43.11 million shares by existing shareholders and promoters.
Promoter Sanjay Nayar Family Trust would sell up to 4.8 million shares as part of the OFS. TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, JM Financial and Investment Consultancy, and Sunil Kant Munjal, among others, would sell their OFS stakes.
Falguni Nayar, an investment banker, established Nykaa in 2012.
Falguni Nayar Family Trust and Sanjay Nayar Family Trust currently own 22.33 percent and 25.72 percent stake in the company, respectively.
The issue’s book running lead managers are Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities, Citigroup Global Markets India, ICICI Securities, and JM Financial.
Nykaa will use the profits of the offering to invest in FSN Brands or Nykaa Fashions in order to open new retail stores. The remaining Rs35 crore and Rs130 crore will be utilised for capital expenditures and debt repayment.
Nykaa would spend Rs200 crore to increase brand visibility and awareness.
The company is a digitally native consumer technology platform that provides consumers with a content-driven, lifestyle shopping experience. It has a varied portfolio of beauty, personal care, and fashion products, as well as products under its own brand that it manufactures.
The company has 43.7 million downloads across mobile apps as of March 2021, and mobile apps contributed for 86.7 percent of its online GMV.
Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks are three various store formats available in its offline channel, which spans 38 cities throughout India.
It offered consumers roughly 2.0 million SKUs from 3,826 national and international brands across all business verticals in FY21. Its overall GMV during this time was Rs4045.98 crore, up 50.7 percent from the previous year.
Nykaa’s income for fiscal 2021 was Rs2,440.90 crore, up from Rs1,767.53 crore the previous year. The company made a net profit of Rs61.95 crore, compared to a deficit of Rs16.34 crore the previous year.