Nykaa acquires stakes in Earth Rhythm, Nudge Wellness, KICA

Founded in 2012 by Indian entrepreneur Falguni Nayar, Nykaa entered the unicorn club in 2020, and had a blockbuster public debut in November 2021.

Nykaa acquires stakes in Earth Rhythm, Nudge Wellness, KICA

Friday April 22, 2022,

4 min Read

Ecommerce beauty giant Nykaa has acquired stakes in three brands on Friday — an 18.5 percent stake in Gurgaon-based Earth Rhythm for Rs 41.65 crore, 60 percent stake at Nudge Wellness Private Limited for Rs 3.6 crore, and purchased assets — including intangibles such as brand trademark, domain, and copyright — from Aneesha Labroo, the owner of the activewear brand Kica, for Rs 4.51 crore.

In a statement, Anchit Nayar, CEO of E-commerce Beauty, Nykaa, said, “For Nykaa, brands that originate within the ethos of transparency and constant innovation towards efficacy and sustainability hold great value."

Earth Rhythm also revealed that it has raised a total of $8 million (Rs 61 crore) from Nykaa in a Series A round, with participation from existing investor Anicut Capital. Earth Rhythm, formerly known as Soapworks India, was launched in 2015, by Harini Sivakumar, an erstwhile investment banker.

On the investment from Nykaa, she said, We are thrilled to have Nykaa as an investor in Earth Rhythm. Their investment is a clear endorsement of our efforts to build a clinically effective and technology-driven skincare and haircare brand. Through this investment, our commitment to our customers and the planet is only going to get stronger.”

"Harini’s tenacious story of why she founded Earth Rhythm reflects her focus on creating a wide range of beauty products that the discerning Indian consumer is looking for. We are proud to partner with a promising early-stage startup and help them to achieve their potential by leveraging Nykaa's expertise and ecosystem,” added Anchit.

Harini Sivakumar

Nudge Wellness, a result of a partnership between Nykaa and D2C brand incubator Onesto Labs Private Limited, is aimed at creating a new category of nutraceuticals and wellness products.

Calling it a "one-of-its-kind" partnership, Anchit said, “Onesto Labs demonstrates superior attention to choosing the right ingredients through R&D and technology that make products sustainable for long-term usage as well as for the planet. Further, in our spirit of fostering and mentoring early-stage D2C startups, the partnership with Onesto Labs is expected to disrupt a constantly evolving beauty market in India.”

Onesto Labs, founded by Rohit, Sifat Khurana, and Vimal Bhola in 2018, has the advantage of formulating clutter-breaking, science-backed brands such as Chemist at Play, Bare Anatomy, and SunScoop SPF to ingredient-conscious consumers.

Rohit Chawla, Founder of Onesto Labs, said, “Our partnership with Nykaa comes at an opportune juncture of growing interest and consumption in nutraceuticals. The combined advantages of Nykaa’s experience in creating meaningful brands and our passion for science-forward beauty solutions will translate into Nudge Wellness. We are excited about the potential of this category, especially as we explore it with Nykaa's support and vision.”

Falguni Nayar (left) with Adwaita Nayar (center) and Anchit Nayar (right)

The Kica acquisition is aimed at expanding Nykaa Fashion's athleisure offerings to cater to the growing active-wear community. Founded by Aneesha Labroo in 2017, Kica was born out of the need for stylish, high-quality products at an affordable price.

Adwaita Nayar, Co-founder Nykaa, and CEO of Nykaa Fashion, said, “We welcome Kica into the Nykaa Fashion family to serve the growing demand for high-quality, fashionable, and functional activewear. With a strong vision to empower women to lead an active lifestyle, Kica is a brand that brings equal passion to product and community both. We are excited to scale this brand further, alongside the dynamic and passionate entrepreneur, Aneesha."

Aneesha added, “Kica has found strong synergies with Nykaa Fashion’s positioning within the ecommerce landscape and its engagement with a wide network of customers around the country. We are thrilled to be part of the Nykaa Fashion family and will continue to develop community initiatives that empower and motivate women to lead healthy, active lives. Movement develops confidence, and mental and physical wellbeing, bringing about a positive outlook that is truly transformational.”

Founded in 2012 by Indian entrepreneur Falguni Nayar, Nykaa entered the unicorn club in 2020, and had a blockbuster public debut in November 2021, becoming the first woman-led startup in India to launch an IPO.

Edited by Saheli Sen Gupta

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