Who does not know about Nykaa!
It is the one-stop shop for all our lifestyle needs such as makeup and beauty, fashion, skincare, and wellness.
What was started as a simple venture by an investment banker, Falguni Nayar in 2012 to offer people a single platform to choose from a wide range of all makeup and beauty products has come a long way by expanding their own portfolio to other segments of the business.
With this, they have also established their own physical outlets to spread their business to more areas and promote aggressive marketing.
It has been competing with other big players such as Flipkart, Amazon, Myntra, PayTM, Policy Bazaar, MobiKwik not only in terms of equivalent products and services but also in terms of valuation of the company.
With their revenue growing at a fast pace, Nykaa has also set its target to be in the pool of major influential changemakers and decision-makers in the lifestyle sector. Knowing about their strength of business competitiveness, Nykaa has also joined other lines of start-ups to go public in the coming months.
It is planning to file an IPO with its expected valuation standing at $4 billion. Meanwhile, in the next few days, the top lifestyle e-commerce retailer could be the first profitable start-up to file its Draft Red Herring Prospectus or DRHP with SEBI, as per the insider news in the market. With this, they wish to sell a little more than 10% of the equity in shares.
The firm has already converted into a public company with the change in the name and type of company after passing a special resolution by its company’s stakeholders. Hence, the erstwhile name FSN E-Commerce Ventures Private Limited has now changed to FSN E-Commerce Ventures Limited.
Nykaa has always attracted the best of investments as it has proven its success by entering the unicorn club in December 2020 after raising $13.6 million from its existing investor Steadview Capital.
The Mumbai-headquartered start-up till date has raised a total of $70 million from a wide range of investors such as Lighthouse Funds, TPG Growth, and Fidelity Management, and many others.
The confidence of the investors in Nykaa lies in the revenue turnover of the start-up which had shown a growth rate of 60% from $159 Mn in FY 2019 to $254 Mn in FY 2020. The business has rather managed to perform beyond its expectation even during the pandemic that has yielded a positive outcome.
Nykaa has been a popular go-to e-commerce platform by people which boasts of 15 Mn registered users with delivering 1.5 Mn orders on a monthly basis. It has over time grown into a brand entity that people easily rely on, trust and associate with.
The marketing of Nykaa has been quite robust from advertising to digital marketing to the word of mouth. This has led to a magnetic pull of monthly 55 million visits from people who have an access to diverse options of 1200 brands registered with Nykaa.
The lifestyle firm is now on the road to becoming one of the key players in the e-commerce segment of business and hence has kept an ambitious target of valuation. However, the final result of the IPO would depend upon a number of variable factors such as market conditions, investors’ proposition, and global peer competition.
Post IPO listing, the founder and CEO of Nykaa, Falguni Nayar would own a dominating stake of over 51%, looking at a bright future for her company and its family.