Aug 3, 2021
Download the article
Click here to print
Text size
aA+ aA-

Indian beauty startup Nykaa to raise $500m through IPO - source

Aug 3, 2021

Indian e-commerce beauty company Nykaa plans to raise $500 million through its initial public offering (IPO), a source with direct knowledge of the matter told Reuters, becoming the latest homegrown startup to pursue a listing on the domestic bourses.

Nykaa- Facebook

Private equity firm TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products and clothes.

Nykaa, formally known as FSN E-Commerce Ventures Ltd, said its IPO will consist of a fresh issue of shares of up to 5.25 billion rupees ($70.63 million) and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus dated Monday.

The source said the 5.25 billion rupees will come from fresh shares issued to investors, while the rest will come from existing shareholders.

Nykaa did not immediately respond to Reuters' request for comment.

Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website and apps, before expanding into fashion, pet care and household supplies.

As of March 31, the company had cumulative downloads of 43.7 million across all its mobile applications, the prospectus showed. It also has an offline presence comprising 73 physical stores across 38 cities in India.

Aside from TPG, the company also counts financial services company Fidelity and popular Indian film actress Alia Bhatt among its investors. Nykaa will use the IPO proceeds to set up new retail stores, fund capital expenditure and repay debts, according to the prospectus.

© Thomson Reuters 2022 All rights reserved.