Boston-based asset management firm Fidelity Management & Research Company has invested an undisclosed amount in Indian fashion and beauty marketplace Nykaa, by acquiring shares from its early investors, Nykaa said on November 26.
Nykaa did not comment on the size of this round or the secondary valuation. “We are very excited to have Fidelity, one of the largest asset managers in the world, to join as a partner in our growth journey,” said Falguni Nayar, founder, and CEO of Nykaa. “Nykaa’s focus on business sustainability and corporate governance further support such strong investor confidence,” she further added.
The investment comes nine months after Nykaa raised Rs 166 crore in a primary transaction from Stead view Capital at a valuation of $1.2 billion, which catapulted the eight-year-old company into the coveted Unicorn club.
One of India’s few profitable internet companies, Nykaa recorded a revenue of Rs 1,860 crore for the year ending March 2020 with EBIDTA of Rs 94 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a measure of operating profits.
Nykaa added that it had clocked revenue of Rs 1,860 crore for the year ended March 31, 2020, and is expecting a 40% growth in consolidated revenue in the ongoing fiscal.
Last month, Nykaa told that it expects its new fashion business to top Rs 500 crore in sales in the current fiscal year, a 5X growth over sales in the previous year. Nykaa has a portfolio of over 300,000 products and partners with more than 1,500 brands.
