Nykaa raises funds from Fidelity Management

By

Maverick Martins

Published
Nov 26, 2020

U.S.-based asset management firm Fidelity Management and Research LLC have invested an undisclosed amount into Indian beauty retailer Nykaa through a secondary transaction. With the investment, Fidelity has acquired shares from Nykaa’s early investors and employees.
 

Nykaa has earlier raised around Rs 167 crore ($22.7 million) from hedge fund Steadview Capital at a market valuation of $1.2 billion.
 
Commenting on the funding, Nykaa founder and CEO Falguni Nayar, in a statement said: “We are very excited to have Fidelity, one of the largest asset managers in the world, to join as partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model. Nykaa’s focus on business sustainability and corporate governance further supports such strong investor confidence.”

Nykaa was founded by Falguni Nayar in 2012 and has become one of India’s largest beauty retailers and the business also runs a dedicated fashion e-commerce site.
 
Despite the Covid-19 pandemic, Nykaa has been investing heavily on expansion across India and expects strong revenue growth during the current financial year. The company had reported revenue of Rs 1,860 crore for the fiscal year ending March 2020.