Nykaa is a fashion and beauty care brand that announced its plans to secure $15 million in debt funding round. The startup plans to raise this amount through its non-convertible debentures from FPI. The company offers beauty, wellness, and fashion products through its website, mobile application, and offline stores across India. The startup plans to use this fresh capital to improve its services, scale its operations, enhance its platform, and expand in the market. We are discussing D2C fashion startup Nykaa to raise $15 million in its debt funding round from Foreign Portfolio investors.
We are discussing D2C fashion startup Nykaa to raise $15 million in its debt funding round from Foreign Portfolio investors:
The company mentioned in its exchange filing that the board members of Nykaa allowed the allocation of up to 12,5000 non-convertible debentures at a specific issue price of Rs 1 lakh each to raise $15 million. According to the company filing, the startup will use these fresh proceeds to expand its services, meet working capital purposes, and develop brand presence. The startup specializes in selling beauty and cosmetics products through its online platforms. Nykaa is wholly owned by FSN e-commerce ventures that provide wellness and beauty products. The company recently expanded its Employee Stock Option Plan by offering 4.73 lakh newly allocated equity shares worth Rs 9.72 crore.
The development came just after Nessa International Holdings collaborated with Qatar-Nysaa cosmetic trade. Nysaa is a joint venture between Nykaa and Apparel Group. Nykaa owns 55 percent of the total stake, while Apparel Group owns 45 percent in Nysaa. Inc42 reported that the e-commerce startup previously mentioned Nysaa cosmetics plans to engage in international exports and trades or sales of personal care and beauty products through online and offline activities. The startup also announced its plans to develop new business verticals as the board approved the acquisition of Nykaa Fashion in a cash deal of Rs 133.7 crore.
FSN e-commerce expects a strong revenue growth of around 23 percent YoY in its first quarter of FY25. Nykaa is also expecting a GMV growth of 40 percent CAGR and a three-fold increase in net sale values in the next four years. The beauty and fashion brand aims to revolutionize the BPC sector by offering a place to access authentic and finely created products and services. The startup provides scientifically tested, high-quality, and expert-formulated products. The company faces competition from other beauty and personal care brands, including Purplle, Myntra, Mamaearth, jiomart, and more.
Conclusion
D2C beauty and personal care startup Nykaa plans to raise Rs 125 crore in its debt funding round from FPI. The startup plans to increase this funding amount through its non-convertible debentures. The company plans to use this fund to scale up operations and enhance its platform for a better user experience. The company plans to use some of this investment to meet general corporate purposes while aiming for market expansion in the BPC segment. The startup claims to provide wellness, beauty, and personal care products through its website and mobile application. The development came just when the beauty and personal care e-commerce sector had an increase in investor’s interest.
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