Steadview Capital adds $8.8 mn to Nykaa funding cart

Mumbai-based FSN E-Commerce Ventures, which owns beauty and personal care platform Nykaa, has raised $8.85 million (Rs 67 crore) in an equity funding round from returning investor Steadview Capital. 

The company has issued 1,09,986 equity shares at Rs 6,049.56 per share to the hedge fund, as per latest regulatory filings. 

This is Steadview Capital’s second investment in Nykaa in as many months. The London headquartered investor infused $13.2 million (around Rs 100 crore) in April for a 3% stake in the beauty ecommerce platform, separate regulatory filings show.

Excluding the current round, the platform has raised a total of $100 million since its inception in 2012, as per VCCEdge data. Other investors in the company include Hero Group chairman Sunil Munjal, the family office of consumer goods maker Marico’s promoter Harsh Mariwala and private equity firm Warburg Pincus. In 2019, the etailer raised $14.4 million from private equity firm TPG Capital. 

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

Founded by investment banker-turned-entrepreneur Falguni Nayar, Nykaa sells products across categories such as skin care, hair care and fragrances for women and men.  

Steadview Capital is an Asia-focused alternative asset manager, with $2.5 billion in assets under management. It is backed by foreign sovereign wealth funds, university endowments, pension funds, foundations and family offices. 

The company has already invested at least $319 million in India this year, in companies such as edtech startup Unacademy; fintech firms BharatPe and INDWealth; and healthtech firm Innovaccer.

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