Nykaa to Plan an IPO : First Profitable Startup to Launch IPO

Nykaa has initiated its operation since 2012. It has been turning its business into a huge success. The company has achieved the position of one of the leaders in omnichannel destinations for beauty products in India. Nykaa is not only famous for women’s beauty products but it has also started the men’s beauty business line. Till today the company has successfully completed sales of more than 39 Lakhs lipsticks till date. The company has a footfall of 55 Lakhs customers on its business portal and stores. The per minute sales stands at 30 makeup products currently for the company. 

It has been developing its online reach constantly. The company delivers more than 13 Lakh Orders per month. The overall product sales stands at 104 in the current situation. The best part about the company so far is the customer retention ratio. As per the company it has almost 72% of its customers who repeat the orders. Thus the company has a loyal customer base. This is very important for any startup with a frequent selling product line.

As of 2020, the company recorded a revenue of 1860 Crore Rs and a net income of 278 Crore Rs. Nykaa also has 76 office locations present in 2020. 

Nykaa IPO

The company has made recent announcements that it will submit its DRHP with SEBI. The aim is to raise almost 750 Million dollars. The valuation at which the company is planning to raise such public money is 4 to 5 billion dollars. Yes it is already a unicorn company. The most interesting fact is online PAYTM and ZOMATO, the company has already reached its break even point and has started churning profits. 

The most fascinating fact is the growth it has received during the COVID times. Before November 2020, the company reported its valuation close to 2 Billion dollars. Thus there is almost 2.25 times growth in the company’s valuation. This is the result of its revenue generation and latest funding rounds. 

The news confirmed the promoter holding pattern. The CEO and founder of company Falguni Nayar and Family will keep 51% stake in the company and have the controller on interest in the same.

The major chunk of the IPO issue will come from the OFS part. There are multiple investors like TPG Growth, Fidelity, Steadview Capital etc. The investment banks of the company are Citibank, Kotak Mahindra Capital, ICICI Securities, Bank of America and Morgan Stanley. 

Nykaa Product Line

Nykaa is extremely diversified into the products it offers across its customers. The company on primary levels diversified itself into products offered for Makeup, Hair, Skin, Personal Care, Natural, Mom and Baby, Health and Wellness, Fragrance, Men and other appliances. Hence it covers both the genders and all the aspects of beauty, grooming and skin care  products.

Diversified further under skin the company offers products such as Cleansers, toners, moisturizers, masks, lip care, neck creams, body care, sun care etc. The makeup kits offered have a diversified portfolio for Face, Body art, Eyes, Lips, Nails and other tools and brushes. The company offers shampoos and hair styling accessories for the hair care segment. It also sells massage tools and shaving equipment under the Personal care segment. The Natural segment consists of various types of natural oils, creams, scrubs, peel offs and many more. The natural segment is actually the most diversified segment the company has.

For the Mom and Baby care section the company has maternity care, baby care and other nursing products. It also provides health and wellness products which are not only related to beauty products. They are products for back pains, bday ache and many more. Hence a little pharmacy in itself. The company has recently opened a new segment known as NYKAA Men. Here it offers all kinds of men’s beauty products and grooming equipment.

Nykaa Facts

Nykaa has its CEO who is the former MD of Kotak Mahindra bank. The company has taken multiple rounds of funding into account. The recent funding is from Steadview Capital of approx. 170 Crore Rs. This increased the company’s valuation at 85 Billion Rs (1.2 Billion Dollars). There have been reports saying that even Bollywood has invested in the company. The famous actresses Alia Bhatt and Katrina Kaif have invested in Nykaa.

The major brands of Nykaa are Nykaa Cosmetics, Nykaa Naturals, and Kay Beauty. The fashion products from Nykaa are sold under Nykaa, Pipa Bella, Likha, RSVP and Mondano.

The above bands consist of multiple acquisitions. The major acquisitions from Nykaa include 20 dresses.com and Pipa Bella. Nykaa being a fashion brand has also organised multiple fashion award programmes for its market and branding. They were under the Femina beauty Awards. It has also organised a THE POWER LIST award in collaboration.

Nykaa has a men’s brand named Nykaa MEN. It has a premium membership for its regular users named as Nykaa PRO For special user access to its Nykaa Application.

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