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Indian beauty Start-up Nykaa Eyes Wow Factor With $500m IPO

Private equity firm TPG and Indian actress Alia Bhatt among its investors; Filing comes after Zomato, Paytm, Oyo Hotels and Ola launches


beauty and fashion retailer Nykaa listed on the country’s stock exchanges NSE and BSE with a huge premium of over 79 per cent
Private equity firm TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products and clothes. Photo: Facebook.

• Private equity firm TPG and Indian actress Alia Bhatt among its investors

• Filing comes after Zomato, Paytm, Oyo Hotels and Ola launches

 

Indian e-commerce beauty company Nykaa plans to raise $500 million through its initial public offering (IPO), sources claim, as it becomes the latest homegrown start-up to pursue a listing on the domestic bourses.

Private equity firm TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products and clothes.

Nykaa, formally known as FSN E-Commerce Ventures Ltd, said its IPO will consist of a fresh issue of shares of up to 5.25 billion rupees ($70.63 million) and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus dated Monday.

 

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The source said the 5.25 billion rupees will come from fresh shares issued to investors, while the rest will come from existing shareholders.

Its filing comes after food-delivery firm Zomato Ltd’s stellar debut last month. Berkshire Hathaway Inc-backed Paytm, hospitality company Oyo Hotels and ride-hailing firm Ola, both backed by SoftBank, are among other Indian start-ups set to enter markets.

Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website and apps, before expanding into fashion, pet care and household supplies.

 

OFFLINE PRESENCE

As of March 31, the company had cumulative downloads of 43.7 million across all its mobile applications, the prospectus showed. It also has an offline presence comprising 73 physical stores across 38 cities in India.

Aside from TPG, the company also counts financial services company Fidelity and popular Indian film actress Alia Bhatt among its investors. Nykaa will use the IPO proceeds to set up new retail stores, fund capital expenditure and repay debts, according to the prospectus.

Morgan Stanley, BofA Securities and Citigroup are among the lead book-running managers of the IPO.

 

  • Reporting by Reuters

 

Read more:

Frenzied Appetite for India Food Delivery Giant Zomato’s IPO

India’s Paytm Eyes October IPO, Hopes to Break Even in 18 Months

 

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