Analjit Singh-promoted Max Ventures and Industries Limited has acquired 2,69,955 equity shares (which represents 1.99% stake) of Rs.10/- each of online cosmetic & wellness retailer Nykaa for an undisclosed amount through its wholly-owned subsidiary Max I. Limited.
In August this year, FSN E-Commerce Ventures Pvt Ltd, which runs Nykaa.com, had said it is in talks to raise Rs 80 crore by the end of 2016 to push growth as it aims to double sales to Rs 720 crore by 2017-18.
Nykaa was founded by Falguni Nayar, former MD at Kotak Mahindra Capital in 2012. The online marketplace sells products across categories ranging from skincare, hair care, fragrances, bath and body, and luxury products for both women and men.
This is the second time this year that Nykaa has raised funding. In September, the firm raised $12 Mn (Rs 82 Cr) in a round led by Hero Group’s Sunil Munjal.
In October 2015, the company raised growth capital from a mix of investors. It raised Rs 60 crore ($9 million) in its second institutional funding round led by private equity firm TVS Capital. Techpro Ventures, the family office of Atul Nishar (former Hexaware promoter) and the family office of Marico chairman Harsh Mariwala, among others, also invested in this round.
Prior to that, Nykaa secured round $3.4 million from family offices and high net-worth individuals in July 2014.
As per the report, the company intended to expand its presence through brick-and-mortar stores, launch its own branded products and bring international brands to India. The firm had been focussing on opening multi-brand retail outlets at malls in Delhi, Mumbai and Bengaluru.
Nykaa.com is expected to close this fiscal with sales of Rs. 320 crore.
The online retailer is also looking at omni-channel presence to achieve growth targets and plans to open nearly 26 more outlets by 2020.
In India, Nykaa competes directly with Purplle.com and larger ecommerce players like Amazon, Flipkart, Snapdeal, Grofers etc.
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