Nykaa.com, an online beauty and wellness retail company based out of Mumbai, has scooped in an amount of $9.5 million (Rs. 60 crore) from numerous investors, including the family offices of Marico Industries chairman Harsh Mariwala and Hexaware Technologies Ltd chairman Atul Nishar.
Nykaa, brainchild of Falguni Nayar, former Managing Director Of Kotak Mahindra Capital Company, has been walking up the ladder of progress ever since it was transfigured from a mere idea into a well established brand.
Nykaa.com offers a comprehensive selection of makeup, skincare, hair care, fragrances, bath and body and luxury products for women and men at the considerable prices.
Nykaa kicked off its operations in 2012, though the e-commerce platform went live in 2013. Nykaa hosts over 350 brands and 35,000 products and claims to have sold over 1.25 million products by now, with over 4 million site visitors every month.
This investment round was led by the private equity arm of TVS Group. Gopal Srinivasan, chairman and managing director of TVS Capital Funds, said the private equity firm will partner with Nayar to further scale up the presence of Nykaa in India.
Narayan Ramachandran, former country head of Morgan Stanley in India, will soon be joining the Nykaa board as the TVS Capital nominee.
A source close to this transaction said Nykaa sold over 20 percent of its stake in this entire process.
With this new pile of cash coming in, Nayar plans to further expand Naykaa’s product line up and prepare the platform for another level of competition. Although, Nykaa has a physical presence with its beauty store located at Indira Gandhi International Airport, Nayar plans to establish a few more stores in Delhi, Mumbai and Bangalore in coming days.
Nykaa.com also plans to increase its gross merchandise value five-fold in the next financial year.
Falguni Nayar said –
We want to be a multi-brand retailer like Sephora and expect to increase our gross merchandise value (GMV) run rate to over Rs 100 crore by December.