Nykaa net profit soars over 3X; VC funding remains modest
Omnichannel beauty and fashion retailer Nykaa has clocked a more than 3x rise in net profit and a 29% rise in revenue for the first quarter of the 2026-27 fiscal year, driven by overall demand. Meanwhile, VC funding in India’s startup ecosystem declined in July.
Hello,
There’s a new startup in town. And it’s Profound.
Former Swiggy and Zomato leaders Anuj Rathi and Prashant Parashar have launched an AI startup named Profound. Profound is building an AI Rep, a personalised AI assistant that represents professionals. The platform is designed to help professionals gear up for career opportunities and meaningful connections.
“Just as actors have agents and athletes have managers, Profound gives each professional their own AI Rep,” said Anuj Rathi, Co-founder and CEO.
In other news, gaming and sports media platform Nazara Technologies has reported a net loss of Rs 82.47 crore for the first quarter of the year. Its CEO Nitish Mittersain has also stepped down from his position. However, he will continue to serve as MD, focusing on long-term strategy and portfolio direction.
When the government meets Meta’s global team, it will raise concerns pertaining to lapses in curbing child sexual abuse material as well as wrongful action on prominent accounts, said IT Secretary S Krishnan.
Moving on, as part of its $21-billion investment in cloud infrastructure in India, Amazon has outlined measures to improve the sustainability of its data centre operations.
Lastly, token consumption by businesses and consumers has soared in recent years. Token is the smallest piece of text or data that an AI model reads, processes, and generates. As employees burn through tokens, companies are struggling to manage their AI costs.
In today’s newsletter, we will talk about
- Nykaa’s 3X rise in net profit
- VC funding in July
Here’s your trivia for today: An ‘agelast’ is someone who never does what?
Earnings
Nykaa net profit soars over 3X
Omnichannel beauty and fashion retailer Nykaa has clocked a more than 3x rise in net profit and a 29% rise in revenue for the first quarter of the 2026-27 fiscal year, driven by overall demand.
The company reported a net profit of Rs 79.76 crore for the first quarter of FY27 compared to Rs 24.47 crore in the similar period a year ago. Revenue from operations was Rs 2,782 crore compared to Rs 2,154.94 crore registered a year earlier.
Growth momentum
- Falguni Nayar, Founder, Executive Chairperson, and CEO said, “This quarter marked continued acceleration in our growth momentum and EBITDA margins, both reaching their highest levels in the last 12 quarters.”
- Consolidated gross merchandise value touched Rs 5,590 crore for the first quarter, at a 34% YoY growth. EBITDA grew 68% YoY to reach Rs 236 crore during the quarter.
- Meanwhile, Nykaa will acquire 51% stake in Aminu, a premium dermocosmetic skincare brand for a cash consideration of Rs 32 crore.
<Funding Alert>
Startup: Vaaree
Amount: Rs 65 Cr
Round: Series A
Startup: GetVantage
Amount: Rs 63 Cr
Round: Series A1
Funding
VC funding remains modest
Venture capital (VC) funding in India’s startup ecosystem declined in July, an expected trend after the surprising mega fundraise by Cred in June.
The slowdown in funding can be attributed to a lack of AI startups, a segment that is attracting investor interest globally.
Key takeaways
- July saw a total funding of $804 million from 98 deals, which was a 61% decline when compared to June where the amount raised was $2,076 million.
- However, when compared to July, 2025 where the fund raise stood at $621 million there was a 29.4% increase in funding, per YourStory research.
- Despite the slowdown, the total funds raised in July were significant considering the current geopolitical environment. The boost to funding actually came from two key deals: Emergent raising $130 million and Udaan securing $160 million.
News & updates
- ETF launch: Jio Financial Services and BlackRock have entered the country’s ETF market through the launch of the JioBlackRock Nifty 50 ETF. The ETF will provide investors exposure to India’s 50 largest listed companies through a single investment product.
- Trade secrets: Apple has asked a US judge for a preliminary injunction barring two former employees and OpenAI from accessing, acquiring, using or disclosing alleged confidential information as it moves ahead with its trade secrets case.
- Merger hurdle: Tesla’s EV business in China could be a key hurdle to a potential merger between Elon Musk’s automaker and SpaceX because of complications it could pose for the space firm’s business with the US government.
An ‘agelast’ is someone who never does what?
Answer: Laughs
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