Nykaa, the popular retailer of beauty products raised $14 million from a foreign equity fund investor, TPG Growth in a recent funding round. Post the investment from the growth-stage investor, Nykaa is valued at $724 million.
The company will announce the developments with respect to the funding and the precise allocations of the fund raised.
Nykaa was initially launched online and gradually entered the offline business. The firm currently has its presence offline through 35 stores across the country. The company is expected to expand its business by adding 10 more stores and introducing new brands with the help of the additional capital raised.
As per a report by Live Mint, the retailer recorded a revenue growth from Rs.214 crore in FY 2017 to Rs.570 crore in FY 2018. The losses dropped from Rs.36 crore in FY 2017 to Rs.28 crore in FY 2018.
The company, that was started in 2012 by an investment banker, Falguni Nayar, was initially backed by many high net-worth individuals like Sunil Kant Munjal, Yogesh Mahansaria, Zia Mody, Harsh Mariwala, and TVS Capital among others.
Nykaa sells an array of wellness and luxury products for men and women, including bath and body, hair care, skin care, make-up, and hair care products. It also offers its own products under categories such as fragrances, nail paints, make-up, and shower gels. The company’s competitors are Flipkart and Amazon as well as Myntra and LimeRoad from the fashion industry.
TPG has been investing in many Indian businesses in their growth stages. Lenskart, Manipal Hospitals, BookMyShow, and Janalakshmi Finance are some of the investees.
Sources: Financial Express and Live Mint