Mumbai based FSN E-Commerce Ventures, which operates omnichannel beauty ecommerce platform Nykaa, has raised an undisclosed investment from Boston-based asset management firm Fidelity Management & Research through a secondary transaction.
The deal facilitated partial exits for its early investors and employees, the company said in a statement, without disclosing identities of other investors in the round or the early backers who exited.
It also secured about $2.6 million in an equity capital infusion from Sunil Kant Munjal, former joint managing director of two-wheeler manufacturing major Hero MotoCorp, in June.
TVS Shriram Capital, JM Financial, TPG Growth and Lighthouse Advisors are among the other institutional investors in the company.
The company claimed it recorded revenue of Rs 1,860 crores for the year ending March 2020 with EBIDTA of Rs 94 crores. Revenues are projected to grow at around 40% on a consolidated level for FY 2021, the statement added.
“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 founder and CEO Falguni Nayar said.
Founded in 2012 by investment-banker-turned-entrepreneur Nayar, Nykaa sells 2,500 brands and over 1.3 lakh products across categories like skin care, hair care, fragrances, bath and body, and luxury products for women and men.
The company claims to have 1.7 crore monthly active visitors on the platform and runs 74 stores across India, with sales of over 15 lakhs orders a month.
Nykaa competes with Manash Lifestyle-owned beauty product portal Purplle, which is backed by Goldman Sachs and JSW Venture Fund, Ivy Capital and Blume Ventures; A91 Partners-backed Sugar Cosmetics; and Tano Capital-backed MyGlamm.