Mumbai-based online retailer of fashion and beauty products, Nykaa, has raised $14 million (INR 100 Cr.) from an American private equity firm TPG Growth Capital in the latest round of funding. This new round takes the company’s total funding to $91.5 million till date.
According to YourStory, reports emerged last month that Nykaa may raise $30 million (INR 213.5 Cr) from private equity firm TPG Capital. Reportedly, this funding round will take Nykaa’s valuation to $724 million. Around $15.72 million (INR 113 Cr) were raised by the company earlier in September 2018, from Lighthouse India Fund III, an affiliate of Lighthouse Advisors. The valuation of Nykaa at that time was around $500 million. Last year, INR 160 crores were raised by the company through sale of primary and secondary shares.
Nykaa has been expanding continuously its offline appeal in the country and currently has over 100K products and 850 brands listed on website and mobile app. The company had launched multiple divisions such as Nykaa Luxe store featuring Indian and international luxury beauty brands. The company also started Nykaa Design Studio for apparel in designer and premium Indian fashion brands like Masaba, Ritu Kumar and many more.
Nykaa has also launched a new section for men called Nykaa Man to expand its target customer base with men’s personal care products in skincare, haircare, sport nutrition, and wellness. It is expected that Nykaa Man will contribute about 2% to the company’s overall revenue. Nykaa had also started NykaaNetwork, an interactive beauty forum to encourage consumers to engage and create beauty conversations.
Nykaa has recorded over $86.09 million (INR 570 Cr) in net revenue in FY18 from $32.32 million (INR 214 Cr). Reportedly, by 2022, it is expected that Indian online beauty and personal care market will cross $3.5 billion.