Nykaa raises ₹100 cr from TPG Growth

Sangeetha Chengappa Bengaluru | Updated on March 31, 2019 Published on March 31, 2019

Omnichannel beauty-and-wellness retailer Nykaa has raised ₹100 crore ($14 million) from private equity investment firm TPG Growth, which sets it on track to be a part of the Unicorn club of private companies that are valued at over $1 billion, in the near future.

FSN E-Commerce Ventures Private Ltd, which runs Nykaa, has been allotted 2,83,287 equity shares of ₹10 each at a premium of ₹3,520 per share on March 28 as per the company’s RoC filings sourced by business intelligence platform

“Nykaa appears to be on track to joining Asia’s Unicorn ranks. TPG Growth’s ₹100-crore investment gives it a spectacular jump in post-money valuation of ₹5,027 crore ($724 million),” founder of, Vivek Durai, told BusinessLine.

The fund raise comes after a long hiatus in institutional investment in the beauty and wellness platform. Nykaa’s previous backers include Hero Enterprise Chairman, Sunil Kant Munjal who invested ₹30 crore in the company in 2016; TVS Shriram Growth Fund which invested ₹25 crore in 2015 and angel investors including corporate lawyer Zia Mody who invested ₹1 crore in Nykaa in 2014. This fresh raise takes Nykaa’s total fund raise to $107.5 million in eight rounds.

Both the hiatus and the extraordinarily high valuation are interesting given Nykaa’s financial performance. However, the valuation can be explained given Nykaa’s recent numbers. “The start-up posted a ₹28.2 crore loss for FY 2018 compared to ₹36.3 crore for the previous year. But these losses pale in comparison to its revenue which jumped from ₹214 crore in FY 2017 to ₹578 crore in FY 2018” said Durai.

Nykaa recently acquired 20Dresses, an exclusive members-only styling site for women, for an undisclosed amount. India’s online beauty and personal care market is expected to exceed $3.5 billion by 2022 from $300 million in 2018, as per estimates from RedSeer Consulting.

Founded in 2012 by former MD of Kotak Mahindra Capital Company, Falguni Nayar, Nykaa currently offers a portfolio of over 1,000 brands across makeup, skincare, haircare and wellness for both men and women.

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Published on March 31, 2019
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