Fidelity invests in online beauty retailer Nykaa

Boston-based asset management firm Fidelity Investments Inc. has invested an undisclosed amount in beauty and fashion marketplace Nykaa through a secondary transaction. With this, it has provided a partial exit to early investors and employees, the e-tailer said on Thursday.

The investment comes after Nykaa raised ₹166 crore in a primary transaction from Steadview Capital in March at a valuation of $1.2 billion, with which the eight-year-old e-tailer turned unicorn.

“We are very excited to have Fidelity, one of the largest asset managers in the world, to join as partner in our growth journey. Nykaa’s focus on business sustainability and corporate governance further supports such strong investor confidence,” said Falguni Nayar, founder and CEO of Nykaa.

The company said it had benefitted from the tailwinds caused by the pandemic, with consumers preferring to shop online from the safety of their homes.

This has allowed Nykaa to increase its share in the beauty market, the company said, without disclosing specifics.

Nykaa added that it had clocked revenue of ₹1,860 crore for the year-ended 31 March, and is expecting a 40% growth in consolidated revenue in the ongoing fiscal.