Nykaa in fundraising talks

The multi-brand beauty business Nykaa is currently in talks to raise 75 crore rupees (approximately 11.3 million US dollars) in a new round of funding that could see one of its largest investors reduce its stake.

Nykaa is currently in talks to raise 75 crore rupees in funding - Nykaa- Facebook

Nykaa, which started as on online only beauty business and has now moved towards an omni-channel strategy, has so far used its own capital to grow its franchise. The business, founded by Falguni Nayar, recorded a topline of over 200 crore rupees (approximately 30 million dollars) in the 2016 to 2017 financial year and, if the funding round goes as planned, the business could be valued at a total of 3,000 crore rupees (approximately 451 million dollars).

Livemint has reported inside sources as stating anonymously that TVS Capital, one of the business’ major investors, may be looking to reduce its stake in Nykaa significantly. However, TVS Capital Funds, which first invested in Nykaa in 2015, has not made an official statement on the matter.

Nykaa has recently been increasing product lines for its private label brand, also called Nykaa. The brand recently launched a line of luxury soaps and has reported promising sales from its own brand which is priced lower than the foreign imports the site also carries.

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