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TPG invests INR 100 crores in Indian beauty retailer Nykaa

March 27, 2019: Nykaa, India’s leading beauty retailer,  raised INR 100 crores through leading private equity fund TPG Growth as primary  investment. TPG Growth is a US-based fund focused on helping grow successful,  middle market businesses across a variety of industries around the world.

Since its launch in 2012, Nykaa has successfully  transformed the beauty industry in India with its wide curation and engaging  content. The omnichannel retailer continues to build its e-commerce business  with over 1000 brands and 100,000 products on website and app, offering  sought-after global brands such as Aveda, Benefit, Huda Beauty, Make Up For  Ever, Flower Beauty and Alma K Dead Sea Minerals in India. Nykaa was the first  online retailer to offer prestige beauty brands like M.A.C Cosmetics, Bobbi  Brown, Estée Lauder and Clinique in India, as well as introduce the Indian  consumer to the global beauty trend of Korean Beauty with brands like The  Faceshop, Innisfree and Laneige.

Nykaa has been growing its physical store presence in  India since 2015 with a current footprint of 35 stores across 15 cities housing  a collection of premium and luxury brands including Tom Ford, Jo Malone London,  Dior and Givenchy.

Catering to specific customer bases, Nykaa launched Nykaa  Man to build its men's grooming business and Nykaa Pro, a portal for  professional beauty consumers. Nykaa is also expanding into the fashion  business with the newly launched Nykaa Fashion website and app offering 150+  brands.

Nykaa has emerged as a strong beauty influencer in India  through its robust content creation on social media platforms like Instagram  and Facebook, its Nykaa TV YouTube channel and Beauty Book blog. Its recently  launched community learning platform Nykaa Network currently has over 650,000  subscribers allowing for dynamic conversations among beauty enthusiasts and  expert opinions from industry leaders.

“This year has been a great year for us and we are  thrilled to close the year by having TPG Growth join our shareholder family. We  believe their expertise will help us continue to strengthen the Nykaa playbook.  As we look for new ways to serve our customers through initiatives like  physical retail, Nykaa Man and Nykaa Fashion, our growth momentum will continue  to remain strong in the coming years,” shared Falguni Nayar, Founder and CEO,  Nykaa.com

“With its omni-channel presence, exclusive brand partnerships, high consumer  engagement and well curated product lines, Nykaa has  emerged as a disruptive force in the Indian beauty landscape in India. The company is  well-positioned to capitalize on its leading position and we are excited to  partner with Falguni and the team to accelerate the company’s already  impressive growth trajectory,” said Akshay Tanna at TPG Growth.

Avendus was financial advisor to the transaction.

About Nykaa

Founded in 2012 by Indian entrepreneur  Ms. Falguni Nayar, Nykaa was created with a vision of providing a carefully  curated range of products for every beauty solution. Derived from the Sanskrit  word ‘Nayaka’ meaning one in the spotlight, it rests on three ideals -  curation, content and convenience. Nykaa currently has a portfolio of 1000+  brands across makeup, skincare, haircare & wellness offering a one-stop,  personalized product availability and solutions to consumers across India. The  Nykaa website and app welcome over 40 million visits per month, of which 60%  are loyal repeat customers. The use of cutting-edge artificial intelligence and  machine learning tools allows Nykaa to create a personalized advice &  solutions for our customers. Nykaa currently has 35 stores across the country  in two formats - Nykaa On Trend and Nykaa Luxe. The Nykaa  Luxe stores offer the best of prestige and luxury beauty brands.  The Nykaa On Trend format is a path-breaking  format with a unique curatorial experience showcasing best sellers that are  trending on the site and app based on sales, reviews and ratings. This store  format brings together the best of online and offline shopping, offering  bestselling online data in a brick and mortar experience. In 2015, it launched its private  label, Nykaa Beauty offering cosmetics, naturals, bath and body and fragrances  under this brand. Visit www.nykaa.com.

About TPG Growth

TPG Growth is the middle market and  growth equity investment platform of TPG, the global alternative asset firm.  With approximately $13.5 billion of assets under management, TPG Growth targets  investments in a broad range of industries and geographies. TPG Growth has the  deep sector knowledge, operational resources, and global experience to drive  value creation, and help companies reach their full potential. TPG has an  extensive investment track record both in consumer brands globally and across  India, including investments in e.l.f. cosmetics, Beautycounter and Anastasia  Beverly Hills, as well as Lenskart, BookMyShow and Livspace in India. TPG  Growth is backed by the resources of TPG, which has more than $94 billion of  assets under management. For more information, visit www.tpg.com.