Private equity and venture capital firm, TVS Capital Funds Ltd. is acquiring a minority stake in Mumbai based eCommerce portal, Nykaa that deals with wellness and beauty products. The PE firm will also participate in Rs. 60 crore series C funding round of the company and will invest about Rs. 25 crore. Previously, Nykaa has raised Rs. 20 crore by selling about 20% from several investors.
“Yes, we are nearly completing the fundraising process,” said Falguni Nayar, chief executive officer, Nykaa.com, without disclosing the details of investors. “We plan to open more offline stores in various airports, such as Mumbai and Bangalore.”
Founded by husband-wife duo, former MD of Kotak Mahindra Capital, Falguni Nayar and KKRIndia CEO, Sanjay Nayar, Nykaa claims to offer about 300 brands and over 15,000 products in various categories including makeup, skincare, hair care, fragrances, bath & body, and luxury products for both men and women.
The beauty and wellness industry in India will double to $12 billion (Rs. 80,000 crore) in 2017 from $6 billion (Rs. 40,000 crore) in 2014, as per KPMG’s 2014 report.
In this space, Nykaa competes with Purplle.com, FabBag.com (formerly Vellvette.com), Beautykafe.com and VioletBag.com as well as eCommerce marketplace firms like Flipkart, Snapdeal, Myntra and Jabong which offer a separate section for this category.