Nykaa on April the 22nd came out to say that the company had acquired an 18.51% share in beauty brand start-up Earth Rhythm. The entire deal is set to be official by the end of next month according to the company’s representatives. The entire transaction is set to put Nykaa back by Rs. 41.65 crores.
Earth Rhythm is a start-up that was set up back in 2018 by Harini Sivakumar and its head office is based in Gurugram, Haryana. The company is unique as it produces and sells products that are 99% plastic free, verified to be organic and there is zero waste in their manufacturing.
The company currently has an online store from which they sell all their products. They also sell most of their products on other e-commerce websites such as Amazon and Myntra. They currently have no real stores as their entire business is online, direct to consumer, currently. This type of model reduces the overhead costs drastically.
The company also has a culture of helping the lower-class people and women, as over the past few years, the firm has hired many women from economically backward families, given them training and providing a livelihood for them and their families. As the company is based near Delhi, the women they hire are also from or around the area.
The chief executive officer of Earth Rhythm – Anchit Nayar said that their company is all about being transparent and having a story and message they have put out about the earth and their products and that is what companies like Nykaa look for when they invest in other companies. The founder’s tale about the inspiration and drive behind the creation of the company is what makes the brand so unique and attractive and now that they will have the help and guidance of Nykaa along with their resources, Earth Rhythm can use that to their advantage to scale up the business and reach new heights.
Recently, Nykaa acquired a share well over majority in a Delhi based company called Nudge Wellness for just over three and a half crores. This is a company that focuses on health and diet and they produce diet supplements along with a whole range of other related products.
Nykaa’s acquisition doesn’t stop there as they purchased a smalls stake in KICA in a deal worth just over four and a half crores. The company produces and sells athletic leisure clothes.