Nykaa's founder: First self made female billionaire!

 

Picture Credits: Linkedin.com


Story of this beauty online store:

Nykaa is India’s largest omnichannel beauty destination for beauty and personal care.

It consists of premium brands, domestic brands, international brands, self-made cosmetics, luxury and prestige brands, niche and cult brands with Authenticity Certification.

Founder of Nykaa – Falguni Nayar (58) was an investment banker earlier. In 2012 she founded Nykaa, when she was 49 years old.

                                                                 Picture Credits: Google Images

It is a growing online site for beauty buffs.

Website: www.nykaa.com

Application: https://play.google.com/store/apps/details?id=com.fsn.nykaa&hl=en_IN&gl=US

Picture Credits: Google Images

Why name Nykaa?

Nykaa is derived from the Sanskrit word "Nayaka". This means actress or one in the spotlight.

It is all about celebrating the star in each woman and being her confidante and companion as she embellishes with her journey to mark her unique identity and personal style.

Tag Line-

Your Beauty is Our Passion.

Parent Company of Nykaa:

FSN E-Commerce Ventures Pvt Ltd. Acquires Rs.482.78 cr. Of capital in Nykaa.

Subsidiary Companies of Nykaa: (Acquisitions)

FSN Brand Marketing Pvt ltd.

Nykaa-KK Beauty Pvt ltd.

Nykaa e-Retail Private ltd.

FSN International Private limited.

Nykaa acquired the women's styling platform "20Dresses.com" on March 22nd, 2019.

It also acquired the Indian Fashion Jeweller brand "Pipa Bella" on April 12th, 2021.

Nykaa acquired a majority stake (more than 51%) of homegrown skincare brand Dot & Key Wellness Pvt Ltd. On September 28th 2021 i.e., Rs.6,92,143 shares for Rs.96.9 cr. in total.

Fundings:

Nykaa has funding from various investors and raised it to about 40M USD in many rounds, hence generating a Revenue of approx. $39M in the first 5 years.

It has a loan of Rs.3167.48 cr. From its parent company i.e., FSN E-Commerce Ventures Pvt Ltd.

The loan from the bank of Rs.66.36 cr.

 

From 2017 to 2020, its revenue has raised to nearly 700%.

Picture Credits – Google Images

Strategies that Nykaa followed to achieve this are:

- Inventory-based business model

- Content-based marketing strategy

- It sourced all its products directly from the original label/brand.

- Nykaa attempted to enter the apparel segment in the market with the launch of lingerie.

- It operated at a way too lower cost and commands a good premium price.

IPO

Open Date - Oct 28, 2021

Close Date - Nov 1, 2021

Face value - ₹1 per equity share

Price - ₹1085 - ₹1125 per equity share

Issue Size - aggregating up to ₹5,351.92 Cr

Fresh Issue - aggregating up to ₹630.00 Cr

Offer for Sale - 41,972,660 Eq. Shares aggregating up to ₹4,721.92 Cr

Allotment Date - Nov 8, 2021

Bids Received - 2,16,59,47,080 shares against 2,64,85,479 shares

Initiation of Refunds - Nov 9, 2021

The credit of refunds to Demat Account - Nov 10, 2021

Listing Date - Nov 11, 2021

Current High₹2431.15 per equity share

Nayar Billionaire?

                                                                                                           Picture Credits: Google Images

Nykaa is a purely private family business. Till 2020, 95% of its holdings were with the Nayar family only.

Nayar’s family still owns a 56.56% stake after the company's listing.

Within 5 minutes after listing Nykaa hit $14 billion (more than 1 trillion INR) overall market capitalization and easily entered into the club of India's top 100 most valuable companies.

Within one and half an hour, Its market capital matched industry giants such as Godrej, IndiGo, and Britannia.

 ---- Author Preethika Surabhi


Comments

  1. Motivating and encouraging story . Plus nice research done.

    ReplyDelete

Post a Comment