Nykaa raises $14 million from TPG

Online fashion and beauty products retailer Nykaa has raised $14.4 million from private equity firm TPG Growth Capital, documents sourced from business intelligence platform Paper.vc showed.

The latest funding has raised the company’s post-money valuation 60% to $724 million, up from $450 million when it raised $24 million in its Series D round last year, according to company filings.

“In the upcoming financial year, Nykaa will focus on bringing in newer fashion brands on its website, and we will expand our offline retail footprint across the country up to 45 stores,” a Nykaa spokesperson said.

The startup was founded in 2012 by former investment banker Falguni Nayar. Nykaa originally launched as an online fashion retailer. It later forayed into offline stores, similar to its competitors like Myntra, FabIndia, Craftsvilla, Faballey, and others.

Nykaa currently has around 35 brick-and-mortar stores in the country.

In August last year, Mint reported that Nykaa had forayed into premium Indian designer wear with the launch of Nykaa Design Studio. At that time, Nayar told Mint that a Nykaa consumer spends on an average ₹ 1,500 and buys four items on an average.

Before launching Nykaa, Nayar was managing director at domestic investment bank Kotak Mahindra Capital Co. Ltd. Nayar was not available for a comment.

Nykaa claims to have more than 80,000 products across 700 brands, listed on its online portal and mobile app. It sells make-up, skincare, hair care, fragrances, bath and body, luxury and wellness products for women and men.

The company also has private label brands across categories like nail paints and fragrances to shower gels and make-up.

Nykaa’s previous investors include Sunil Kant Munjal, Chairman of Hero Enterprise, Yogesh Mahansaria, Harsh Mariwala, TVS Capital, and several other high net-worth individuals (HNIs).

For the year ended March 2018 (FY18), Nykaa posted revenue of ₹ 570 crore, up from ₹ 214 crore in the previous year. It posted a loss of ₹ 28 crore in FY18, down from ₹ 36 crore in the previous financial year.

In an earlier interview with Mint, Nykaa’s chief executive Nayar said that the company is targeting to hit ₹ 1,200 crore for the year ended March 2019.