FSN E-Commerce Ventures Ltd, an owner of Nykaa, is looking to raise Rs525 crore through a fresh issue of shares and an offer for sale (OFS) of up to 43.11 million shares by existing shareholders and promoters.
E-Commerce Startup
Nykaa, an e-commerce startup for beauty products, has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (Sebi) to raise funds via an initial public offering (IPO).
FSN E-Commerce Ventures Ltd, an owner of Nykaa, is looking to raise Rs525 crore through a fresh issue of shares and an offer for sale (OFS) of up to 43.11 million shares by existing shareholders and promoters.
Investors
The OFS comprises the sale of up to 4.8 million shares by promoter Sanjay Nayar Family Trust. Investors such as TPG Growth IV, Lighthouse India Fund III, Lighthouse India III Employee Trust, JM Financial and Investment Consultancy, Sunil Kant Munjal, among others, will also sell their stake in the OFS.
Nykaa was founded in 2012 by investment banker Falguni Nayar.
Currently, Falguni Nayar Family Trust and Sanjay Nayar Family Trust hold 22.33% and 25.72% stake, respectively, in the firm.
Lead Managers
Kotak Mahindra Capital, Morgan Stanley India, Bofa Securities, Citigroup Global markets India, ICICI Securities, JM Financial are the book running lead managers to the issue.
Nykaa will allocate ₹35 crores from the proceeds of the issue for investment in its arms FSN Brands or Nykaa Fashions to set up new retail stores. Another Rs35 crore and Rs130 crore will be used for capital expenditure and repayment of debt.
Nykaa will use Rs200 crore to enhance the visibility and awareness of its brands.
The firm is a digitally native consumer technology platform, delivering a content-led, lifestyle retail experience to consumers. It has a diverse portfolio of beauty, personal care, and fashion products, including its owned brand products manufactured by it.
As of March 2021, the company had cumulative downloads of 43.7 million across mobile applications and 86.7% of its online GMV came through mobile apps.
Its offline channel comprises 73 physical stores across 38 cities in India over three different store formats — Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.
For FY21, it offered approximately 2.0 million SKUs from 3,826 national and international brands to its consumers across business verticals. Its total GMV was Rs4045.98 crore in this period, which grew by 50.7% from a year ago.
For fiscal 2021, Nykaa reported a revenue of Rs2,440.90 crore versus Rs1,767.53 crore a year ago. Net profit was at Rs61.95 crore against a loss of Rs16.34 crore last year.
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