Mugunthan Siva joined us from India Avenue Investment to give us insight into a company called Nykaa. Nykaa is an Indian e- commerce company founded by Falguni Nayar in 2012. Nykaa has raised money through multiple rounds of funding. In March 2020, it raised US$13 million from Steadview Capital, thus making it a unicorn startup valued at US$1.1 billion. This was followed by another tranche of US$8.4 million funding by Steadview in May 2020. Two Bollywood actresses invested in the company through secondary funding. In November 2020, global asset management firm Fidelity invested in the company through a secondary sale of shares from an existing equity investor. Nykaa opened its initial public offering (IPO) on 28 October 2021. The IPO was oversubscribed 81.78 times, raising US$670 million at a valuation of US$7.4 billion. Nykaa was publicly listed on the NSE and BSE on 10 November 2021, and its price rose by 89.2% on opening day, valuing the company at nearly US$13 billion. Founder Falguni Nayar, who owned a 53.5% stake in the company, became India’s wealthiest self-made female billionaire. Today, Nykaa’s shares trade at Rs.1,433 apiece on the BSE, after peaking at Rs.2500 in Dec 2021, providing a much more reasonable entry point for the multi decade growth story.
Date: 26th July 2022 | Publication: Ausbiz
