Nykaa also legally known as Nykaa E-Retail Private Limited is an online marketplace for beauty and wellness products and it has recently announced to be preparing for an Initial Public Offering as soon as this year which would evaluate the company at a whopping USD 3 billion valuation.
Founded in 2012 by Falguni Nayar, the Unicorn e-commerce platform is known for its diverse collection of beauty and wellness products. Nykaa is popular amongst both genders with its interactive and comprehensive content which includes articles by experts, product reviews, e-beauty magazines and how-to or DIY videos related to beauty.
According to multiple sources familiar with the matter, the Mumbai-based start-up is inclined towards a domestic listing but an overseas share is also an option which the company is keeping under consideration, as mentioned in a report by Economic Times.
Nykaa offers products from a range of over 1200 brands that deal in skincare, make-up, hairdryers and health supplements. According to sources, the company records over 13 million orders every month and operates with six warehouses across the country.
AS far as the funding of the beauty company is concerned, Nykaa has raised a total funding worth USD 145.9 million in over 12 financing rounds, according to the company profile on CrunchBase. The latest secondary market funding round was concluded by the company on November 26, 2020, which was led by Boston based- Fidelity Management and Research Company.
According to sources, back on 2018, Chief Executive Officer and founder, Falguni Nayar issued a statement to the local news agency PTI saying that Nykaa was preparing for an Initial Public Offering in two years. Mind you, this statement was said in 2018.
As we are all aware of the COVID-19 pandemic and its consequences on the country, an increasing trend of online shopping and emerging e-commerce businesses has been witnessed, among which Nykaa like companies have benefitted a lot. Indian consumers have switched their default mode of shopping to online instead of the traditional walk-in and shop concept. The threat of the COVID-19 virus has shut people in their houses but Nykaa is the flourishing one amongst the lot.
The company claims to have authentic sourcing of beauty and wellness products from various brands to provide a one-of-a-kind shopping experience to its customer-base.
Till date, the company has only acquired one company, 20Dresses which is also a Mumbai-based fashion and lifestyle e-commerce brand. The acquisition was concluded last year on March 22, 2019.