Online cosmetics and beauty products retailer Nykaa has raised an additional $9 million (Rs 66.64 crore) in funding from Asia-focused hedge fund Steadview Capital.
Steadview had pumped in Rs 100 crore in Nykaa last month, which had reportedly valued the Mumbai-headquartered startup at about $1.2 billion.
According to the filings sourced by Paper.vc, Nykaa’s parent entity, FSN E-commerce Pvt Ltd, has allotted an additional 109,986 equity shares at Rs 6,049.5 per share to Steadview Capital Mauritius. Following the investment, Steadview’s stake in Nykaa stands at 3 per cent, The Economic Times reported quoting business intelligence platform Tofler.
Nykaa has secured fresh funding at a time when the e-commerce sector has been severely hit by the coronavirus pandemic. India went into a complete lockdown starting March 25, with sales and delivery of only essential items allowed to prevent the coronavirus from spreading. In March, Nykaa, too, had suspended operations, shut down retail stores and offices in a bid to abide by the government’s regulations.
However, it has now partially resumed operations by selling essential personal care and hygiene products such as handwashes, masks, and hand sanitizers. India could see a further easing of restrictions after 17 May, when the third phase of the lockdown ends.
In March last year, Nykaa had raised about $14.4 million from private equity fund TPG Growth. Prior to that, it had secured about $15.8 million from Lighthouse India Fund III Ltd, an affiliate of consumer-focused private equity firm Lighthouse Advisors, in September 2018.
Founded in 2012 by Falguni Nayar, Nykaa claims to have a portfolio of more than 1000 brands and 500,000 products across makeup, skincare, haircare and wellness categories.
