Nykaa IPO | Business Upturn

Founder of Nykaa, Falguni Nayar is India’s richest self-made female billionaire

News Desk — Wed, 10 Nov 2021 08:32:32 +0000

Falguni Nayar’s beauty business has catapulted her into the top 1% of the world’s wealthiest people. Falguni, owning approximately half of Nykaa, is now worth about $6.5 billion after the company’s stock soared as high as 89 percent in early trade on Wednesday. According to the Bloomberg Billionaires Index, she has become India’s wealthiest self-made female billionaire.

Nykaa’s parent company, FSN E-Commerce Ventures, is India’s first woman-led unicorn to list on the stock exchange. It raised 53.5 billion rupees ($722 million) in its first public offering, which was priced at the top end of an advertised range. As of 10:36 a.m. in Mumbai, the stock was up 78 percent.

Nayar started Nykaa in 2012, only months before turning 50, after leading a renowned Indian investment bank. Most women in the nation bought beauty and hair care items from their local mom-and-pop shops, where the range was limited and trials were unheard of.

Since then, the company has expanded to become the country’s largest beauty retailer, bolstering online sales with demo videos from attractive Bollywood actresses and celebrities and more than 70 physical locations.

Exfoliation creams, bridal make-up basics, and hundreds of hues of lipstick, foundation, and nail colour to fit Indian skin tones, skin types, and local weather are among the things sold by Nykaa, which is derived from the Sanskrit word for heroine. According to its filing, sales increased by 35% to $330 million in the fiscal year ending in March. Nykaa is a profitable company, which is unusual among internet startups making their public debut.

While Nayar is India’s richest self-made female billionaire, Savitri Jindal is the country’s wealthiest woman, controlling the OP Jindal Group conglomerate built by her late husband. According to the Bloomberg Billionaires Index, a ranking of the world’s 500 wealthiest people, her fortune is worth $12.9 billion.

Reliance Retail set to start online business in cosmetics

Ayisha Farah — Mon, 27 Sep 2021 08:48:54 +0000

Reliance Retail has been intensifying its e-commerce play brick by brick. The launch of its fashion portal Ajio in 2016 signalled its first step into India’s quickly growing e-commerce division, a move it resulted in its e-grocery venture JioMart in 2019.

A raft of additions across segments followed this. According to a report by The Economic Times, which arrived last week, the company has set its view on the online cosmetics and personal care goods section next, including brands such as Nykaa and Purplle and marketplaces like Amazon and Flipkart.

India’s beauty and personal care business, including physical and online stores, is estimated at $14-15 billion and is expected to increase at a compound annual growth rate (CAGR) of 8 percent across the next five years, according to Euromonitor. A Jefferies report fastens the amount of the online segment at 5-6 percent of the overall market, which would interpret to $800 million in revenue. Nykaa, with revenue of $250 million in FY2020, accounts for above 30 percent of the online market, says the Jefferies report. The company reportedly has 15 million registered users, 5 million monthly active users (MAUs) and performs over 1.5 million orders per month. This presents the vertical marketplace as the most significant beauty and personal care retailer in India.

Nykaa is set to begin its initial public offering later this year. Last month, the company registered its draft red herring prospectus (DRHP) with India’s Securities and Exchange Board. The company’s IPO will include a fresh offering of shares worth Rs 525 crore and a sale of 43.1 million shares by existing shareholders.

Reliance Brands also has business with various international brands such as Japan-based Muji, Armani, Burberry, Canali, Diesel, and Hugo Boss, which will benefit the company’s retail unit eyes the online cosmetics division.

Nykaa also has a related model and, of late, has begun offline stores. It runs 82 stores across 30 cities within the country. The company has a crowd of unique labels such as Nykaa Cosmetics, Nykaa Naturals. It has also collaborated with celebrities such as Katrina Kaif and Masaba Gupta to launch exclusive beauty brands. It brought several Korean makeup brands to India as well.

Former banker Falguni Nayar all set for a billionaire startup in Nykaa IPO

Sneha Sengupta — Tue, 03 Aug 2021 07:56:59 +0000

For several years, Falguni Nayar coached the founders of Indian companies through roadshows in Europe and U.S. in their path to stock market debuts. Now the former investment banker revitalized with her own startup to a remarkable historic public offering.

Her brainchild, Nykaa has emerged as India’s top e-commerce site for beauty products, with the seal of approval from Bollywood stars and an intense following among this gen. The startup, filed the preliminary documents late Monday for a public offering, for which the Bloomberg News categorically reported could reach the business up to $4 billion profit. However, the DRHP didn’t float on the SEBI till the time of filing.

While working with the entrepreneurs, Nayar discovered the importance of motivating the business mission. With the idea of Nykaa, she wanted to turn over a new leaf by providing an equal share of work to Indian women. In a recent interview, she said, “I was inspired by those die-hard founders. “Our message to women has been that the spotlight of her life should be on herself. You are important in your story and should feel no guilt at being centre stage”, she added.

If the IPO goes as per the itinerary, Nykaa will contribute to be India’s first women-led unicorn to reach the public range.

The sales margin augmented to more than 1,000 plus orders within months from the set target sales of 60 per day orders at launch. Nykaa gathered momentum by crafting customized products for Indian skin tones, skin types and local weather conditions. Additionally, it launched an assemblage of nail colours, ranging up to 2,700 shades. It also commenced shoppers to aid in the make-up basics section, comprising products like foundation with 1,500 shades. Nykaa is now scaling up to promote its latest hair masks and night-face serums products.