India-based multi-brand beauty and fashion retailer Nykaa is launching an IPO (initial public offering) later this fiscal at a valuation of US $ 4.5 billion, which is a steep rise from its earlier valuation of over US $ 3 billion.
The rise in the retailer’s overall valuation is driven by a surge in its revenue and profit, owing to a massive increase in consumers shopping online during the COVID-19 pandemic.
Nykaa, the largest in its space in India, has filed with the regulatory SEBI and plans to offer up to 43 million shares worth 5.25 billion rupees (or US $ 70.8 million).
Founded in 2012, Nykaa is India’s largest omnichannel marketplace for women with approximately 15 million registered users. The beauty retailer caters to 1.5 million orders a month.
Since its inception, Nykaa has diversified into verticals for men’s, luxury and private label beauty, while adding categories such as fashion, jewellery and home decor products to its offering.
The filing for an IPO with the SEBI is being hailed as a milestone for Indian markets as Nykaa is one of the few start-ups going for a stock market listing after declaring a profit.
It is also one of the rare Indian companies to be led by a woman, Falguni Nayar, Founder and Chief Executive Officer of Nykaa who is a banker-turned-entrepreneur.
In a sector dominated by global players — US e-commerce giants Amazon and Walmart-owned Flipkart, and by the likes of Sephora in bricks-and-mortar — Nykaa’s plan is seen by industry analysts as timely despite the pandemic.