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Nykaa acquires stakes in Earth Rhythm, Nudge Wellness and Kica

Nykaa has announced the acquisition of an 18.51% stake in clean beauty brand Earth Rhythm for  ₹41.65 crore, a 60% stake in Nudge Wellness for  ₹3.6 crore, marking entry into dietary supplements and nutricosmetics products, and athleisure brand KICA for  ₹4.51 crore Photographer: Anindito Mukherjee/Bloomberg (Bloomberg)Premium
Nykaa has announced the acquisition of an 18.51% stake in clean beauty brand Earth Rhythm for 41.65 crore, a 60% stake in Nudge Wellness for 3.6 crore, marking entry into dietary supplements and nutricosmetics products, and athleisure brand KICA for 4.51 crore Photographer: Anindito Mukherjee/Bloomberg (Bloomberg)

  • The company has been on an acquisition spree since its market debut last year

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FSN E-Commerce Ventures Ltd, which owns online beauty and cosmetics retailer Nykaa, has acquired stakes in Earth Rhythm, Nudge Wellness, and KICA, it announced on Friday.

The company has announced the acquisition of an 18.51% stake in clean beauty brand Earth Rhythm for 41.65 crore, a 60% stake in Nudge Wellness for 3.6 crore, marking entry into dietary supplements and nutricosmetics products, and a 100% stake in athleisure brand KICA for 4.51 crore, BSE filings showed.

“Their (Nykaa’s) investment is a clear endorsement of our efforts to build clinically effective and technology-driven skincare and haircare brand. Through this investment, our commitment to our customers and the planet is only going to get stronger," said Harini Sivakumar, chief executive officer and founder of Earth Rhythm, formerly Soapworks India, which was launched in 2015.

Nykaa said it has partnered with direct-to-consumer (D2C) accelerator Onesto Labs to create Nudge Wellness, which is one among a slew of its recent partnerships with homegrown D2C brands.

These partnerships are aimed at bolstering the early-stage beauty and lifestyle ecosystem and building the next generation of brands specializing in sustainable and inclusive products.

Onesto Labs Pvt. Ltd is fully owned by promoter group entity 72 Ventures LLP. However, once the transaction closes on 30 June, Onesto will hold a 40% stake in the company.

The company’s fashion vertical NYKD has acquired KICA, which was founded by Aneesha Labroo in 2017. KICA, which offers active wear and athleisure apparel, will be housed among Nykaa’s other brands such as NYKD, Pipa Bella, Twenty Dresses, RSVP, Gajra Gang, IYKYK, and Likha.

“KICA has found strong synergies with Nykaa Fashion’s positioning within the e-commerce landscape and its engagement with a wide network of customers around the country," Labroo said.

Nykaa, which made a bumper market debut in November 2021, has been on an acquisition spree. Just before its listing, the firm had acquired skincare brand Dot and Key for an undisclosed sum in October last year.

Nykaa has also been expanding its fashion business with a couple of acquisitions in the past two years. In 2019, it acquired women’s styling platform 20Dresses.com. In April, Nykaa acquired jewellery etailer Pipa Bella, a brand that targets 22-35-year-old urban women.

Nykaa was set up in 2012 by investment banker-turned-entrepreneur Falguni Nayar, who was a managing director at Kotak Mahindra Capital. Its online marketplace sells products for both women and men in categories including skincare, haircare, fragrances, bath and body, and luxury products.

The company has become an omnichannel lifestyle retailer with more than 17 million monthly active users across 70 stores in the country, fulfilling more than 1.5 million orders a month.

The company offers more than 4,000 brands and more than 3.1 million product stock-keeping units through its website and mobile applications as of 31 August 2021.

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