About the Company:
FSN E-Commerce Ventures Limited, the parent company of NYKAA opens for IPO subscription on 28th October 2021. It is looking for raising up to Rs 5,350 crore through the public issue.
Nykaa’s CEO & Co-founder Falguni Nayar, have had a successful career as MD of Kotak Investment Banking before starting Nykaa in 2012. Falguni and her family hold the majority stake in the company. Her twins(Adwaita and Anchit) help in running the whole business operations, heading different divisions of the company. Falguni Nayar, the founder of the eCommerce unicorn, along with her husband Sanjay Nayar, their children Anchit Nayar and Adwaita Nayar hold 53.5% share in the company, as per the DRHP
Nykaa Family Company Responsibilities:
Even after IPO promoters would own above 50% of the stake.
Nykaa is raising the money for following:
- Investment of ₹ 420 million in certain of their subsidiaries, namely, FSN Brands and/or Nykaa Fashion for funding the set-up of new retail stores
- ₹ 420 million towards capital expenditure to be incurred by the company and investment in certain of their subsidiaries, namely, Nykaa E-Retail, Nykaa Fashion, and FSN Brands for funding the set-up of new warehouses
- ₹ 1,560 million towards repayment or prepayment, of outstanding borrowings availed by the company and one of their subsidiaries, namely, Nykaa E-Retail
- Expenditure of ₹ 2,340 million to acquire and retain customers by enhancing the visibility and awareness of the brands
- General corporate purposes
Business Division Distribution
Nykaa: Beauty and Personal Care
- 197,195 SKUs from 2,476 brands as on 31.3.2021
- Nykaa started manufacturing through 3rd parties for its own brands such as “Nykaa Cosmetics”, “Nykaa Naturals” and “Kay Beauty”
- In Fy 20-21, 2.4 million orders were placed for beauty and personal care products with a total GMV of ₹33,804.1 million
- Nos. of Orders in Fy 20-21 registered 17.1 million
- The average value of Orders on Nykaa for beauty care products was ₹1,963 for the Financial Year 2021
Nykaa Fashion: Apparel and Accessories
- As of March 31, 2021, Nykaa Fashion housed 1,350 brands and over 1.8 million SKUs with fashion products across four consumer divisions: women, men, kids and home
- The average value of orders on Nykaa Fashion mobile application and website was ₹2,379 for the Financial Year 2021. According to the RedSeer report, the average value of Orders on the Nykaa Fashion mobile application and website is the highest among leading online fashion retail platforms in India
- Nykaa Fashion also has six owned brands
- In Fy 20-21, 2.4 million orders were placed for fashion products with a total GMV of ₹6,655.7 million
NYKAA IPO Note :
Under the OFS, Sanjay Nayar Family Trust, the company’s promoter is offering up to 4.8 Mn shares. Nykaa’s investors — TPG Growth IV SF Pte Ltd and Lighthouse India Fund III would sell up to 5,421,510 and 4,844,620 shares, respectively.
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