Nykaa, the online beauty store has brought a paradigm shift in the e-commerce industry and is now bringing in profits as an unlisted stock to the portfolios it exists in. Gleaning the Sanskrit word ‘Nayaka’ which means ‘one in the spotlight’, Nykaa ensures to abide by its meaning and stays ahead in showcasing the best wellness, fashion, and beauty products for its customers.
Nykaa has received a lot of interest from private equity investors. Lexdale International holds a 1.27% stake, while angel investors Sunil Munjal and Harsh Mariwala have invested approximately ₹82 crores.
One of Nykaa’s backers, TPG Growth has invested ₹100 crores that added to the valuation of Nykaa shooting it up to ₹5000 crores. Another key investment bagged by Nykaa was from Steadview Capital a 3% stake in the company after it invested ₹67 crores. As of April 2019, Nykaa’s total investment stands at ₹355 crores. The company is now a unicorn startup.
Nykaa showed some unexpected figures for the fiscal year 2019, with revenue of ₹1,200 crores that is more than double of its recorded revenue for FY 2017-18 of ₹570 crores. A tremendous growth rate for an unlisted stocks entity.
Building a brand image is something in which Nykaa performed well, given its marketing might. The decision of making Janhvi Kapoor as the brand ambassador, right after she came into the movies, was a move well made by Nykaa. The actor is of a younger demographic and it is easier to appeal and create a fresher look of the brand. This also symbolizes the very objective of Nykaa- to empower women.
As told by the founder of Nykaa, Falguni Nayar, Nykaa plans to open 35 offline stores adding to the existing 35 along with pushing the launch of its apparel line, Nykaa Fashion, and a whole line of products for men under Nykaa Man. Surely these lines of business make unlisted stocks look more valuable on a portfolio.