Nykaa raises $13.2 mn from Steadview Capital; partially suspends operations due to Covid-19 crisis

FSN E-Commerce Ventures, the Mumbai-based company that owns omnichannel beauty ecommerce platform Nykaa, has raised $13.2 million (Rs 100 crore) in a funding round from returning investor Steadview Capital, the company said in a statement.

Details on when the London headquartered hedge fund first invested in the company were not available.

“We are very grateful to achieve this significant milestone… In the midst of this unprecedented global crisis we are working to ensure all our stakeholders are well served and that Nykaa emerges as a leading retail player in the industry,” Falguni Nayar, founder and CEO of Nykaa said in a statement.

Incidentally, in the wake of the ongoing Covid-19 crisis, Nykaa, like most ecommerce companies, has partially suspended its operations. “Please note we are only accepting prepaid orders for now on daily essentials. We have started deliveries to select pincodes in Mumbai, Pune, Delhi and Bangalore...” it said in a note on the homepage of its website.

The Steadview investment comes a year after Nykaa raised $14.4 million in a funding round from private equity firm TPG Capital. 

Since inception, the platform has raised $88 million, according to data vailable with VCCEdge. The company’s other investors include Hero Group chairman Sunil Munjal, the family offices of consumer goods maker Marico promoter Harsh Mariwala and private equity firm Warburg Pincus.

In the financial year 2018-19 Nykaa reported a net profit of Rs 2.31 crore as against a loss of Rs 17.71 crore in the previous year on revenues of Rs 1,161 crore.

“We believe the company is poised for a strong growth trajectory in the years to come. The company’s focus on customer service and capital efficiency stands out in the Indian ecommerce space," Ravi Mehta, founder and CIO of Steadview Capital said.

Founded in 2012 by investment-banker-turned-entrepreneur Nayar, Nykaa sells products across categories like skin care, hair care, fragrances, bath and body, and luxury products for women and men. 

Nykaa competes with Manash Lifestyle-owned beauty product portal Purplle backed by Goldman Sachs and JSW Venture Fund, Ivy Capital and Blume Ventures. In January this year, Purplle raised $8 million in a Series C round from Brussels-headquartered family investment firm Verlinvest.