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.
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.