TPG Growth in talks to Pick up $40 million minority stake in Nykaa

By

Isabelle Crossley

Published
Feb 22, 2019

The investment firm TPG Growth is currently in talks to invest $30 million (Rs 200 crore) to $40 million to acquire a minority stake in the multi-brand beauty business Nykaa. Steadview Capital is also in talks with Nykaa about the same.

American business TPG Growth is in ongoing negotiations with Nykaa to acquire a minority stake in the business through an investment made through purchasing shares from existing shareholders, three sources told TNN. Nykaa is currently in the process of bringing more institutional shareholders on board to its business.

“Nykaa is one of the fastest growing vertical e-tailers and has also reached break-even,” one of the sources told TNN. The source also stated that a Hong Kong-based hedge fund was in talks with Nykaa on the same but that TPG Growth emerged as the front runner.

Nykaa has previously raised funds from Sunil Munjal of Hero, Harsh Mariwala of Marico, and Max Group. Nykaa has a major share of India’s fast growing beauty market and reported a revenue total of Rs 570 crore in the 2018 financial year, up from Rs 270 crore the year before. Nykaa is also expanding offline and aims to reach 90 brick-and-mortar stores by 2020.