Beauty brands retailer Nykaa plans to raise Rs 213 cr from US-based private equity firm TPG Capital

Nykaa has reportedly raised Rs 255 crore so far and this excludes the TPG Capital's investment offer.

FP Staff February 22, 2019 13:09:38 IST
Beauty brands retailer Nykaa plans to raise Rs 213 cr from US-based private equity firm TPG Capital
  • Value of Nykaa may go up to about Rs 4,500 crore if the deal takes place

  • Nykaa has reportedly raised Rs 255 crore so far and this excludes the TPG Capital's investment offer

  • The company, which at present has 22 outlets across the country, plans to open 180-200 stores in the next 4-5 years

Online beauty and skin care retailer Nykaa is planning to raise about Rs 213 crore from US-based private equity firm TPG Capital, said a media report.

If the deal takes place, the value of the Mumbai-based company may go up to about Rs 4,500 crore from last year's value of Rs 3,000-3,500 crore reported The Economic Times quoting people aware of the development.

In April 2018, Falguni Nayar-led Nykaa had raised Rs 75 crore from its existing investors including Hero Enterprise chairman Sunil Munjal’s family office, consumer goods maker Marico’s Mariwala family office, and Dalip Pathak, a special limited partner at private equity firm Warburg Pincus, the report said.

Beauty brands retailer Nykaa plans to raise Rs 213 cr from USbased private equity firm TPG Capital

File image of Falguni Nayar. News 18

Nykaa has reportedly raised Rs 255 crore so far and this excludes the TPG Capital's investment offer.

In September last year, Nykaa had announced its plans to launch an initial public offering (IPO) by 2020. The company had then said it also aimed at doubling its revenue to around Rs 1,100 crore by end of fiscal 2018.

“We are already on a path to prepare for an IPO. Before IPO... you need to be formally run and follow a bunch of processes. We also have appointed KPMG as our internal auditor. It (IPO) will happen by calendar 2020,” Falguni Nayar told PTI.

Nayar is a former investment banker and used to specialise in IPOs.

The company, which at present has 22 outlets across the country, plans to open 180-200 stores in the next 4-5 years. It had reported a revenue of Rs 570 crore in 2017-18. At present, physical stores contribute below 10 percent to the online beauty retailer’s revenue.

When asked if the company plans to raise funds for its expansion plans, Nayar said, “We may look at raising funds. But it will not be a lot.”

Nykaa had a plan to introduce about 20 brands in 2018. The company at present sells over 850 brands across makeup, skincare, hair care and wellness categories.

With PTI inputs

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Fortis stake sale: Two major investors plan to vote against Manipal Hospitals-led consortium's potential take over
Business

Fortis stake sale: Two major investors plan to vote against Manipal Hospitals-led consortium's potential take over

Two major investors in Fortis Healthcare plan to vote against a Manipal Hospitals-led consortium if that group is selected as the winning bidder

Fortis stake sale: Latest bid 'more risky', says Manipal CEO Ranjan Pai as hospital mired in regulatory investigation
Business

Fortis stake sale: Latest bid 'more risky', says Manipal CEO Ranjan Pai as hospital mired in regulatory investigation

India’s privately held Manipal Hospitals had to take a “more risky” approach in its latest bid for domestic rival Fortis Healthcare to see off rival suitors, said Manipal’s Chief Executive Ranjan Pai.

Shareholder demand forces three directors to quit Fortis Healthcare board amid takeover battle
Business

Shareholder demand forces three directors to quit Fortis Healthcare board amid takeover battle

Three directors of Fortis Healthcare have quit ahead of a shareholder vote on Tuesday to decide their future, the company said, the latest twist in a prolonged takeover battle for the hospitals operator