One of the biggest names in online beauty vertical, Nykaa has received a funding of Rs 67 crore from its existing investor, Steadview Capital. This investment is an addition to Rs 100 crore which Steadview contributed in Nykaa only last month. Post this deal, the investment firm will be holding 3% stakes in Nykaa. FSN E-Commerce Pvt. Ltd., the holding entity of Nykaa has given 1,09,986 equity shares at Rs 6,049.56 per shares to the investing company.
This fresh capital will be a boon for the company as it came during the time of crisis when Nykaa already announced a delay in payments to its vendors and partners. The company has suspended most of its operations and only recently it started the sell of personal hygiene items like hand sanitizers and masks from private label brands.
Even though the company hasn’t been running to the fullest of its capacity, it is trying to engage its audience through content. This is going quite well as they have recorded 120% increase in watch time on YouTube. Founded by merchant banker, Falguni Nayar Nykaa has been competing with brands like Purplle and horizontal platforms like Amazon and Flipkart. For the last fiscal year, company’s revenue was recorded at Rs 1,228.8 crore. Nykaa focuses on customer service and customer efficiency sets it apart from other e-commerce channels.