Nykaa values to $724Million after raising $14 Million from TPG growth

Key Highlights

Nykaa raises $14 Million from TPG Growth and valuation crosses to $700 Million.

Nykaa plans to enhance its offline store count to 70% from the existing 35% by 2020.

The Indian cosmetics market is expected to be $20 billion by 2025.


Online beauty and skin care retailer Nykaa closes funding round by raising $14 Million from TPG Growth a middle market and growth equity fund of private equity major TPG Capital.

According to regulatory filings of companies sourced by business signals platform Paper.vc. with this funding round Nykaa valuation has reached to $724 Million. Nykaa has allotted 2,83,287 shares.

It provides tough competition to marketplaces such as Amazon and Flipkart apart from LimeRoad and Myntra in the fashion e-commerce category. According to the sources aware of the finding Nykaa has raised $14 Million in primary funding and is also attracting several other investors including Steadview Capital through the secondary transaction.

Nykaa came into action in 2012 by Falguni Nayar, former managing director at Kotak Investment Banking. The e-tailer is looking forward to using raised funds in accelerating its new initiatives fashion and apparel categories and Nykaa Man. It will also utilize raised amount in enhancing its offline store count to 70% from the existing 35% by 2020. The Mumbai-based online retailer is expected to more than double its net revenue to Rs 1,200 crore for the fiscal year ending March 31, 2019, having recorded Rs 570 crore for FY 2017-18. However, the company losses got reduced to Rs 28.2 crore for FY 2018 compared to Rs 36.3 crore for the previous year.

The company is backed by Sunil Kant Munjal who invested Rs 30 crore in 2016, host of angel investors such as corporate lawyer and Founder and Managing Partner of AZB & Partners Zia Mody who put Rs 1 crore in 2014 and TVS Shriram Growth Fund who invested Rs 25 crore in 2015. Nykaa in previous funding in September 2018 raised $16 million from Lighthouse India Fund and was valued around $400 Million.

According to a report by RedSeer Consulting, The Indian cosmetics market is expected to hike from $6.5 billion in size in 2017 to around $20 billion by 2025 growing at 25 percent CAGR whereas the global market will be around $450 billion by 2025. Hence, India is expected to contribute 5% of the global market.

Nykaa has launched Nykaa Man last year to create its men’s grooming business and Nykaa Pro, a portal for professional beauty consumers. Nykaa is expanding its business rapidly and giving tough competition to it’s to rivals.

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