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Indian beauty retailer Nykaa gets funding from Fidelity Investments Inc

Boston-based asset management firm Fidelity Investments Inc. has invested an undisclosed amount in Indian beauty retailer Nykaa through a secondary sale of shares by existing investors and employees.

Founded in 2012, Nykaa operates each online as well as offline retail stores, providing makeup, skincare, haircare, fragrance, and personal care things, among others. Nykaa contains a portfolio of over 300,000 product and partners with over 1,500 brands.

As per an official statement, Nykaa had posted a turnover of Rs 1,860 crore in FY20 and expecting a 40% growth in consolidated revenue in FY21 within the present transaction, Fidelity acquired shares from an early investor, which is partially exiting its holding, and additional ones are given as worker stock choices, the statement aforesaid.

The company recently said it's benefited from individuals shifting to on-line shopping amid the pandemic, therefore boosting the e-tailer’s market share within the beauty business. The investment comes after Nykaa raised Rs 166 crore from Steadview Capital in March from primary share sale which made the company achieve the unicorn status.

Falguni Nayar, founder and CEO of Nykaa said “We are very excited to possess Fidelity, one in all the most important asset managers within the world, to affix as partner in our growth journey. Nykaa’s specialise in business sustainability and company governance further supports such strong investor confidence”.

Nykaa’s competitor, cosmetics firm Plum, announced yesterday that it had raised 110 crore rupees (US$14.9 million) during a series B funding led by Faering Capital.