Steadview financing values ​​Nykaa at $ 1.2 billion

Digbijay Mishra and Madhav Chanchani | TNN

Bangalore: It has raised a total of Rs 100 crore, or $ 13 million, from the hedge fund with a valuation of Rs 9.2 crore, or more than $ 1.2 billion, according to MCA documents from the business intelligence platform. Tofler. With this, beauty and online marketer has become the last (valued at over $ 1 billion) in the Indian startup industry.

The new round of financing comes as the online retail business is poised to enter a difficult quarter, with sales restricted to just the essentials and the overall slowdown likely to impact discretionary spending like cosmetics. Nykaa sells beauty products through its online store, as well as 50 to 60 offline stores across the country.

Funding includes the sale of shares by some existing Nykaa investors and employees, which was done at a valuation discount of $ 1.2 billion. The latest round comes about a year after the company raised $ 15 million from TPG Growth, which had valued it at $ 724 million.

At the same time, Nykaa said it is taking precautions by informing its suppliers in a communication that its cash flows and revenues will be affected. The blockade has already impacted companies across the industry, and this will have a significant impact on the business cycle, including the cash conversion cycle ... In light of this, we consider it prudent to inform you that there will be a delay in making payments. of outstanding invoices to all vendors and partners, ”Nykaa reported Tuesday.

Nykaa confirmed Steadview's investment. We are so grateful to achieve this important milestone ... In the midst of this unprecedented global crisis, we are working to ensure that all of our stakeholders are well served and that Nykaa emerges as an industry leading retail actor, founder and founder of Nykaa. Chief Executive Falguni Nayar said in a statement Tuesday.

Nykaa, which was started by former investment banker Nayar, is one of the top players in the online beauty space, competing against e-commerce players like Amazon, Myntra, and other niche players like Purplle, which was recently funded by Goldman Sachs. Nykaa includes among investors Sunil Munjal from Hero Group, Harsh Mariwala from Marico from FMCG and Max Group.

The company's net income more than doubled to Rs 1,159 million at the end of March 2019 compared to Rs 555 million in the same period of the previous year. But what sets Nykaa apart is that it is one of the few unicorns that makes money as it reported a gain of Rs 2.3 crore during the period against a loss of Rs 17.7 crore earlier.