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

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. [caption id=“attachment_6134691” align=“alignleft” width=“380”] File image of Falguni Nayar. News 18[/caption] 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