Incorporated in 2012, Nykaa is a consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including their own brand products manufactured by them. The company operates under 2 major verticals:
- Nykaa: Beauty and personal care
- Nykaa Fashion: Apparel and accessories
Under the Beauty and Personal Care Offering, the company has 197,195 SKUs from 2,476 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal care, and health and wellness categories as of March 31, 2021. For beauty and personal care offerings, Nykaa’s business is mainly inventory-led. The company manufactures its owned brand beauty and personal care products through third-party manufacturers and are sold under their brand name such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”.
Apparel and accessories verticals consist of 1,350 brands and over 1.8 million SKUs with fashion products across four consumer divisions: women, men, kids, and home. Nykaa Fashion also has six owned brands. The company provides an omnichannel shopping experience to its customers by providing both online and offline shopping channels. Online channels include mobile apps, websites, and mobile sites while offline channel consists of 73 physical stores spread across 38 cities in India.
Competitive Strengths:
- One of India’s leading specialty beauty and personal care companies.
- Major brands offering their products on Nykaa’s platform for sale
- Capital efficient business with strong growth and profitability
- Company’s advanced technology platform
- Founder-led company with an experienced management team
Objectives of the Issue:
- Investment of ₹ 420 million in certain of their subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores;
- ₹ 420 million towards capital expenditure to be incurred by the company and investment in certain of their subsidiaries, namely, Nykaa E-Retail, Nykaa Fashion, and FSN Brands for funding the set-up of new warehouses;
- ₹ 1,560 million towards repayment or prepayment, of outstanding borrowings availed by the company and one of their subsidiaries, namely, Nykaa E-Retail;
- Expenditure of ₹ 2,340 million to acquire and retain customers by enhancing the visibility and awareness of the brands.
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