Nykaa Founder Falguni Nayar
TheNFAPost Podcast

The beauty startup company, Nykaa is planning for an initial public offering this year. As per the people familiar with this matter, this may value the company at a minimum $3 billion.

According to the sources, the founder of the company Falguni Nayar is working with advisers to prepare for the share sale in Mumbai. Nykaa is leaning toward a domestic listing, though an overseas share sale is also under consideration, said the sources.

Beauty and ecommerce platform Nykaa recently announced that Alia Bhatt made a personal investment in it through a secondary transaction for an undisclosed amount. Reportedly, the round of investment, Nykaa entered the startup unicorn club.

Deliberations are ongoing and details of the offering including the size and timeline could change, the people said. Nykaa was founded in the year 2012 and the platform offers over 1,200 brands ranging from makeup, skincare to health supplements and hair dryers.

Nykaa counts TPG and Indian tycoon Sunil Munjal’s family office Hero Enterprise among its backers. In November, Fidelity Management and Research Co. invested an undisclosed amount in Nykaa’s latest funding round. The startup is among companies that have benefited as Indian consumers increasingly shop online — a trend bolstered by the pandemic-led lockdown last year.

Since its launch, Nykaa has been instrumental in shaping the beauty and lifestyle industry in India through its omni-channel reaches and curated product offering. The platform follows an inventory-led model, and has its own private label in cosmetics and personal care segment.

While Nykaa Men offers beauty and grooming products, Nykaa Pro caters to all professional beauty needs with special access and offers, and Nykaa Beauty is its in-house beauty products offering cosmetics across lips, eyes, face and nails. It also has skin and body care range apart from bath and body collection, naturals and fine fragrances.

According to reports, Nykaa had turned profitable in FY19,  posting profits of ₹2.3 crore, while its revenues touched ₹1,159.32 crore.

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