Nykaa raises Rs. 2396 Cr. in funding ahead of IPO
Nykaa’s parent company FSN E-Commerce Ventures Ltd recently announced that it raised Rs. 2396 crore in a funding round ahead of its IPO on Thursday. The round saw participation from BlackRock Global Funds, Fidelity Funds, Nomura, Government of Singapore, Monetary Authority of Singapore, Canada Pension Plan Investment Board, T Rowe Price, Tiger Global Investments Fund, Goldman Sachs, and Morgan Stanley, among others.
As per the company’s draft red herring prospectus (DRHP), the 5200 crore IPO will comprise the fresh issuance of stocks worth Rs. 630 crore and an offer for sale (OFS) of over 43.11 million shares.
Existing stakeholders expected to sell a portion of their stakes include the Sanjay Nayar Family Trust with up to 48 lakh equity shares, TPG Growth IV SF Pte Ltd with 54.21 lakh shares and Lighthouse India Fund III with 48.44 lakh shares through the OFS, etc.
The company plans to use the capital raised to invest in its subsidiaries, open retail stores, and repay its existing debt.
True Beacon and Zerodha co-founder Nikhil Kamath said, “Nykaa has had quite a journey! Key to that has been the fact that they set organization processes, and standardised protocol, in the early-stage, when most startups don’t even give it a thought. For instance, they got their inventory management in order by tying up with suppliers exclusively (like Huda).”
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