Nykaa planning to raise upto $10 million by June

New Delhi: Nykaa.com, an online retailer of fashion and beauty products, is looking to raise $8-$10 million by June as the company seeks to set up two new offline stores and launch its private label by March 2016.

add_main_imageFounder and chief executive officer Falguni Nayar is aiming to touch ₹ 80-100 crore in revenue by the end of the next financial year.

“We are looking to raise $8-$10 million from domestic investors only,” said Nayar, a former managing director at Kotak Mahindra Capital Company.NextMAds

Nykaa.com, owned by FSN E-commerce Ventures Pvt Ltd, which has previously raised ₹ 20 crore from high net worth individuals and large family houses, runs on an inventory-led business model in which an online retailer sells goods that it actually holds.

Indian law doesn’t allow foreign direct investment in e-commerce sites that sell directly to customers, but allows it in online marketplaces that link sellers and buyers.

“We might be missing on some growth opportunities but we would like to do it (business) the right way,” she added.

Nykaa, which currently has one brick-and-mortar store at Delhi airport terminal 3, plans to add three more the next 18 months.

Nayar wants to eventually launch women-centric fashion categories such as sarees, fashion accessories and jewellery. “We might look at a marketplace model when expanding into these categories,” she added.

Online retail is expected to be worth $6 billion this year, a 70% increase over 2014 sales of $3.5 billion, according to Gartner Inc. E-commerce currently represents less than 4% of the total retail market, according to a Gartner report published in October.sixthMAds