[Funding alert] Fidelity management invests in Nykaa
, the omnichannel fashion and beauty startup, which made into the unicorn club this year, has received an undisclosed investment from Boston-based asset management company Fidelity Management & Research Company.
Following this investment from Fidelity, Nykaa has completed a secondary placement that facilitated partial exit for its early investors as well as an exit for employee ESOPs.
Nykaa Founder and CEO Falguni Nayar said,
“We are very excited to have Fidelity, one of the largest asset managers in the world, to join as a partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model.”
Nykaa Founder and CEO Falguni Nayar
The company last month had announced that Bollywood actor Alia Bhatt had invested in the company through a secondary transaction for an undisclosed amount.
Earlier this year, in March, the company had also raised Rs 166 crore from Steadview Capital through a primary transaction, which led to a valuation of over $1.2 billion.
According to the startup, it recorded revenue of Rs 1,860 crore for the year ending March 2020 with EBIDTA of Rs 94 crore. The company’s revenues are projected to grow at around 40 percent on a consolidated level for FY 2021.
According to Nykaa, it is appropriately positioned to benefit from the recent tailwinds that have supported sales for predominantly online businesses. The combination of accelerated consumer activity online and overall brand performance for Nykaa has boosted its market share in the beauty business as well as jump-started growth for its fashion platform, it claimed.
Founded in 2012, Nykaa is focused on the beauty and lifestyle industry in India through its omni-channel reach, which includes offline, online, and curated product offering. The platform follows an inventory-led model and has its own private label in cosmetics and personal care segment.