Cosmetic & Beauty Product Platform Nykaa files for IPO to raise INR 525 crore
Nykaa, the Indian e-commerce beauty firm backed by private equity firm TPG, has filed for an initial public offering (IPO), becoming the latest homegrown startup to seek a listing on domestic bourses.
According to a copy of its draught red herring prospectus dated Monday, Nykaa, formally known as FSN E-Commerce Ventures, said its IPO would include a fresh issue of up to 5.25 billion rupees ($70.63 million) in shares and an offer for sale of up to 43.1 million shares.
Nykaa's filing follows Zomato's successful debut last month. Other Indian startups set to enter markets include Paytm, which is backed by Berkshire Hathaway Inc, Oyo Hotels, and Ola, which is backed by SoftBank.
Nykaa, based in Mumbai, began selling cosmetics and grooming products on its website and apps in 2012 before expanding into fashion, pet care, and household supplies.
As of March 31, the company had received 43.7 million downloads across all of its mobile applications. According to the prospectus, it also has an offline presence in India, with 73 physical stores spread across 38 cities.
Aside from TPG, the firm's investors include financial services company Fidelity and popular Indian film actress Alia Bhatt. According to the prospectus, Nykaa intends to use the IPO proceeds to open new retail locations, fund capital expenditures, and repay debts.
Morgan Stanley, BofA Securities, and Citigroup are among the IPO's lead book running managers.
Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust, and Sanjay Nayar Family Trust are the company's promoters. For the last three fiscal years, the weighted average return on net worth was 0.68 percent. India has the world's second-largest urban population. India will continue to grow at each level of the digital use-case funnel, as there is significant room for expansion.
In 2019, the Beauty and Personal Care Market in India was valued at Rs 1,267 billion, having grown at a CAGR of 13% over the previous three years. Though the market fell to Rs 1,120 billion in 2020 as a result of lower spending during the first COVID-19 wave, it is expected to grow at a CAGR of 12% to reach Rs 1,981 billion in 2025, implying a 7.7% CAGR from the pre-COVID-19 market.
According to a copy of its draught red herring prospectus dated Monday, Nykaa, formally known as FSN E-Commerce Ventures, said its IPO would include a fresh issue of up to 5.25 billion rupees ($70.63 million) in shares and an offer for sale of up to 43.1 million shares.
Nykaa's filing follows Zomato's successful debut last month. Other Indian startups set to enter markets include Paytm, which is backed by Berkshire Hathaway Inc, Oyo Hotels, and Ola, which is backed by SoftBank.
Nykaa, based in Mumbai, began selling cosmetics and grooming products on its website and apps in 2012 before expanding into fashion, pet care, and household supplies.
As of March 31, the company had received 43.7 million downloads across all of its mobile applications. According to the prospectus, it also has an offline presence in India, with 73 physical stores spread across 38 cities.
Aside from TPG, the firm's investors include financial services company Fidelity and popular Indian film actress Alia Bhatt. According to the prospectus, Nykaa intends to use the IPO proceeds to open new retail locations, fund capital expenditures, and repay debts.
Morgan Stanley, BofA Securities, and Citigroup are among the IPO's lead book running managers.
Falguni Nayar, Sanjay Nayar, Falguni Nayar Family Trust, and Sanjay Nayar Family Trust are the company's promoters. For the last three fiscal years, the weighted average return on net worth was 0.68 percent. India has the world's second-largest urban population. India will continue to grow at each level of the digital use-case funnel, as there is significant room for expansion.
In 2019, the Beauty and Personal Care Market in India was valued at Rs 1,267 billion, having grown at a CAGR of 13% over the previous three years. Though the market fell to Rs 1,120 billion in 2020 as a result of lower spending during the first COVID-19 wave, it is expected to grow at a CAGR of 12% to reach Rs 1,981 billion in 2025, implying a 7.7% CAGR from the pre-COVID-19 market.
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