Nykaa closes funding round, to expand retail footprint

By

Isabelle Crossley

Published
May 15, 2018

Nykaa has closed its latest series D investment round of 165 crore rupees (approximately 24.8 million dollars) and plans to use some of the new funds to open more brick and mortar stores.

The multi-brand online beauty retailer Nykaa achieved its funding goal of 165 crore rupees and received investments from both primary investment and the secondary exit of some of the early stage investors. Many of the brand’s previous early stage investors did choose to invest again in the business. These included Sunil Kant Munjal, the Chairman of Hero Corporate Service Pvt. Ltd. and the private equity professional Dalip Pathak.

It is unsurprising that many investors decided to invest again because Nykaa is aiming for profitability in 2019. For the 2017/ 2018 financial year, Nykaa reported a revenue total of 570 crore rupees (approximately 85.7 million dollars) which is a huge increase from its 2016/ 2017 financial year revenue total of 214 crore rupees (approximately 32.2 million dollars).

Nykaa has announced that it will use the new funds to fund its growth capital as well as to expand its retail footprint. Nykaa has already forayed offline with 17 brick and mortar outlets across India and aims to open 55 stores by March 2019.

Nykaa was launched online by Falguni Nayar in 2012. The business now sells over 850 brands and 100,000 products and has launched a number of international brands in India.