Nykaa, an online fashion marketplace for beauty and fashion, is raising Rs.125 crore (approximately $15 million) through non-convertible debentures. According to the disclosure that was submitted to the National Stock Exchange, the board of Nykaa has decided to issue up to 12,500 non-convertible debentures (NCDs) at an issue price of Rs.1,00,000 each in order to raise Rs.125 crore through a dematerialized private placement.

The debentures will be distributed to a foreign portfolio investor, according to the additional disclosure. However, Nykaa didn’t revealed the name of the investor.

Although Nykaa did not specify the purpose of the debt financing, the company intends to invest $2.5 million in one or more tranches in its UAE-based subsidiary Nysaa Beauty.

Earth Rhythm is an associate and one of the company’s 14 subsidiaries. The majority of Nykaa’s revenue comes from the sale of fashion, beauty, personal care, and other goods and services on a variety of platforms. From Rs 5,144 crore in FY23, Nykaa’s operating revenue increased by 24.1 percent to Rs 6,386 crore in FY24.

The company reported a 90.5% increase in profit from Rs.21 crore in the previous fiscal year to Rs.40 crore in FY24. The organization has extended 22-23% development for the primary quarter of FY25. Nykaa also announced new ESOP - Employee Stock Options for its workers ahead of the Q4 results.

The expansion of the ESOP pool was done with the intention of encouraging employee ownership as well as attracting, retaining, and motivating talent in line with the expansion of the company.