Nykaa, an online beauty, and personal care product retailer has raised Rs 75 crore fresh funds. The investment also spiked the Mumbai-based company’s valuation at Rs 3,000 crore.
The funding round was led by existing investors such as Sunil Munjal’s family office, Marico’s Mariwala family office, and Dalip Pathak along with other existing and new high net worth individuals.
The fresh capital infusion is a part of Rs 170 crore investment round for the online retailer. The first tranche was a mix of primary and secondary transactions that brought in about Rs 95 crore to some existing shareholders, reports ET.
Nykaa’s CEO Falguni Nayar claimed that the company is already Ebitda-breakeven and it aims to be profitable by FY19 at a company level. If all goes as per plan, the company may need small capital only to fund its working capital growth.
As far as revenue is concerned, the company has clocked Rs 570 crore in net revenue in FY18 from Rs 214 crore during previous fiscal. However, the FY18 revenue is unaudited and may be revised when the audited report is submitted.
Nykaa was started by Nayar in 2012. The online portal offers makeup, skincare, hair care, fragrances, bath and body, luxury and wellness products for women and men. It claims to offer over 80,000 products across 700 brands on its .platform.
With the fresh funds, Nykaa will expand its offline presence from 17 stores currently to about 55 stores by FY19-end. The firm will also deploy a part of the capital to enhance retail distribution so as to boost its private label.
Nykaa sells its private labels through physical retail distribution and it is present across 800 stores. Currently, private label contributes less than 10 per cent of the company’s revenue.
The last financing round for Nykaa materialised in 2016 when it raised a little over Rs100 crore from Max Ventures and Industries Ltd, the Munjal Family Office, Yogesh Mahansaria and Harsh Mariwala.
In 2015, the company had secured $9.5 million in a Series B round led by the TVS Shriram Growth Fund, while the Series A round of $3.2 million came in July 2014.
The report also added that three investors including TVS Capital Funds, which invested in Nykaa during Series B round are learned to have sold part of their stakes. However, neither TVS nor Nykaa has come with any confirmation on it.