Nykaa raises ₹100 cr from Steadview, suspends operations due to lockdown2 min read . Updated: 31 Mar 2020, 11:35 PM IST
Nykaa will focus on daily essentials and personal hygiene products, for now
Bengaluru: Online cosmetics and beauty products retailer Nykaa said on Tuesday that it has raised ₹100 crore from existing investor Steadview Capital.
However, on Tuesday, the company informed vendors on that it has suspended operations due to the lockdown to tackle the Covid-19 pandemic in India.
Nykaa informed vendors that the company has suspended operations, shut down retail stores and offices. Nykaa also told the vendors that their cash flow and income have been impacted, and that that there will be a delay in making payments of outstanding invoices.
A copy of the statement from Nykaa E-Retail Pvt Ltd, dated 31 March 2020, e-mailed to the All India Online Vendors Association, was shared with Mint.
"The spread of covid-19 across the globe has caught everyone unprepared...Most of the state governments have issued directives to temporary shut down establishments, retail stores, logistics, business operations, etc. We are adhering to every instruction of the government and the health department and will continue to do so. Thus, we have suspended our operations and temporarily shut down all our retail stores, our corporate offices, warehouses pan India," Nykaa said, in the statement to vendors.
"The lockdown has already impacted business across industry, and this will have significant impact on the business cycle including cash conversion cycle. Like all consumer-facing businesses, we now face a situation where our cash flow and income are impacted, but on the other hand, our expenses remain constant. In light of this, we find it prudent to update you that there will be a delay in making payments of outstanding invoices to all vendors and partners," it added.
A note posted on Nykaa's website said it will focus on daily essentials for now. "Please note we are only accepting prepaid orders for now on daily essentials. We have started deliveries to select pin codes in Mumbai, Pune, New Delhi and Bangalore. However, there might be some delays due to local constraints. We are doing our best to restart deliveries to other cities," it said.
“We are very grateful to achieve this significant milestone. We deeply value the trust and support of our investors, customers and brand partners who have been instrumental to our success. 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 the statement on the latest fund raise.
“We are excited to deepen our partnership with Nykaa. Nykaa has transformed the beauty industry in India and has established a very strong brand. 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.