Lighthouse picks up secondary stake in Nykaa for Rs 113 Cr investment

Nykaa

Online beauty and personal care product retailer Nykaa has raised around Rs 113 crore from Lighthouse India Fund III, an affiliate of Lighthouse Advisors via secondary share sales.

The fresh round has come within three months of its Series D round. The Mumbai-based startup which earlier closed Rs 165 crores in May and raked in Rs 75 crore in April. With this, the six years old company has raised about $79 million total risk capital across several rounds.

Following the deal, existing investor TVS Shriram Growth Fund has exited from the firm. The fund had invested in Nykaa in the Series B and C rounds in 2015 and 2016 respectively.

During the funding round in April, it was learned that at least three investors in the company including TVS Capital Funds had sold part of their stakes. However, it could not be verified by the sources then.

Floated by Falguni Nayar, Nykaa offers makeup, skincare, hair care, fragrances, bath and body, luxury and wellness products for women and men. It claims to offer over 1,00,000 products across 850 brands on its platform.

Nykaa sells its private labels through physical retail distribution and it is present across 800 stores. Currently, private label contributes less than 15 per cent of the company’s revenue.

The company would use fresh proceeds to expand its offline footprint to 90 stores in India by 2020.

On revenue front, Nykaa had clocked Rs 570 crore in net revenue in FY18 as compared to Rs 214 crore during previous fiscal. Now, it expects to be profitable in the next fiscal.

Of late, Indian startup ecosystem has witnessed a slew of secondary share sales where investors, founders, and employees had made fortunes. In 2018 alone, eight firms such as Paytm, Ola, Lenskart, Zomato, BigBasket, Pine Labs and Flipkart had sold secondary share worth $710.

Earlier this month, Sequoia Capital, SAIF Partners and Nexus Venture Partners, which led Series C funding round in Unacademy with an investment of $21 million bought stakes of Waterbridge Ventures.

The Bengaluru-based early-stage backer has reportedly made 5X returns through the secondary share sale.

The development was reported by YourStory.

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