India's Largest Cosmetics Retailer Nykaa Acquires D2C Skincare Brand Dot & Key
On October 28, India's largest cosmetics retailer, Nykaa has acquired Dot & Key, a domestic skincare company, just days before its IPO (Initial Public Offering).
The deal's details haven't been revealed.
This is the start-up's first transaction in the direct-to-consumer area, led by Falguni Nayar.
The deal, on the other hand, is reflective of the industry's greater upheaval.
According to a statement made on Friday, “Following this investment by Nykaa, Dot & Key will join Nykaa’s stable of owned brands”.
Nayar said, “We are excited to bring Dot & Key into the Nykaa family in time to serve the demand in high quality skincare by Indian consumers’’. “Its product range presents an exciting opportunity for Nykaa as it allows us to extend the brand’s reach to a larger landscape of consumers and enter the nutraceutical space as well”, added Nayar.
Dot & Key is a skincare company founded by Suyash and Anisha Saraf that offers toners, cleansers face masks and serums. Under the name ‘IKWI’, the company has lately expanded into nutraceuticals, with products that are dermatologically tested and cruelty-free.
Dot & Key's exclusive advisor on the acquisition was Ernst & Young LLP.
Suyash Saraf said, “We created a niche brand with Dot & Key, focused on making products based on consumer needs. Nykaa’s position in the beauty landscape in India and its resources will allow Dot & Key to grow further as a brand and scale to the next level”.
According to ETtech, Nykaa's parent company, FSN E-commerce Ventures Ltd., aims to undertake an initial public offering (IPO) on October 28 to earn up to INR 5,200 crore at a valuation of up to $7.2 billion (INR 55,000 crore). According to the IPO documents approved by the markets regulator, the transaction will be a combination of INR 630 crore in new stock and an offer for sale of 41.3 million shares by current investors.
As of August 31, 2021, Nykaa's website and mobile apps provide 4,078 brands and over 3.1 million product stock keeping units (SKUs). The company is one of India's few profitable retailers. On the back of sales that increased 38% to INR 2,453 crore in FY21, it made a net profit of INR 61.96 crore in March 31st, compared to a fresh loss of INR 16.34 crore in previous year.
The deal's details haven't been revealed.
This is the start-up's first transaction in the direct-to-consumer area, led by Falguni Nayar.
The deal, on the other hand, is reflective of the industry's greater upheaval.
According to a statement made on Friday, “Following this investment by Nykaa, Dot & Key will join Nykaa’s stable of owned brands”.
Nayar said, “We are excited to bring Dot & Key into the Nykaa family in time to serve the demand in high quality skincare by Indian consumers’’. “Its product range presents an exciting opportunity for Nykaa as it allows us to extend the brand’s reach to a larger landscape of consumers and enter the nutraceutical space as well”, added Nayar.
Dot & Key is a skincare company founded by Suyash and Anisha Saraf that offers toners, cleansers face masks and serums. Under the name ‘IKWI’, the company has lately expanded into nutraceuticals, with products that are dermatologically tested and cruelty-free.
Dot & Key's exclusive advisor on the acquisition was Ernst & Young LLP.
Suyash Saraf said, “We created a niche brand with Dot & Key, focused on making products based on consumer needs. Nykaa’s position in the beauty landscape in India and its resources will allow Dot & Key to grow further as a brand and scale to the next level”.
According to ETtech, Nykaa's parent company, FSN E-commerce Ventures Ltd., aims to undertake an initial public offering (IPO) on October 28 to earn up to INR 5,200 crore at a valuation of up to $7.2 billion (INR 55,000 crore). According to the IPO documents approved by the markets regulator, the transaction will be a combination of INR 630 crore in new stock and an offer for sale of 41.3 million shares by current investors.
As of August 31, 2021, Nykaa's website and mobile apps provide 4,078 brands and over 3.1 million product stock keeping units (SKUs). The company is one of India's few profitable retailers. On the back of sales that increased 38% to INR 2,453 crore in FY21, it made a net profit of INR 61.96 crore in March 31st, compared to a fresh loss of INR 16.34 crore in previous year.
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