Nykaa completes acquisition of additional 24.2% stake in Earth Rhythm
The latest stake buy further strengthens Nykaa’s ownership of Earth Rhythm as it expands its portfolio of beauty and personal care brands.
FSN E-Commerce Ventures, the parent company of Nykaa, has completed the acquisition of an additional 24.2% stake in beauty and personal care brand Earth Rhythm, following a board-approved transaction that was valued at up to Rs 9.4 crore.
The company said in a stock exchange filing on Saturday that it had executed all the necessary transaction and procedural documents for the stake buy, and that the additional equity shares had been credited to its demat account.
Nykaa's board had approved the proposed increase in its shareholding in Earth Rhythm on May 21, allowing the company to acquire up to 24.2% additional equity in its subsidiary. The transaction was to be completed for a cash consideration of up to Rs 9.4 crore.
The latest move further consolidates Nykaa's ownership of Earth Rhythm, a clean beauty brand founded by Harini Sivakumar. Nykaa had first invested in the company in 2022, acquiring an 18.5% stake for Rs 41.65 crore as part of an $8 million Series A round, alongside existing investor Anicut Capital.
Nykaa subsequently increased its investment in Earth Rhythm. In August 2024, the company announced a further investment of up to Rs 44.5 crore in the beauty brand through a combination of primary and secondary transactions, under which Earth Rhythm became a majority-owned subsidiary of Nykaa.
Earth Rhythm sells skincare, haircare, and makeup products around clean, non-toxic, and sustainable formulations. Its products are sold through its own website as well as third-party marketplaces and quick-commerce platforms.
The acquisition comes as Nykaa continues to expand its portfolio of owned and acquired beauty brands. Its House of Nykaa portfolio, which includes Dot & Key, Earth Rhythm and Kay Beauty, recorded a 49% year-on-year increase in annualised GMV run-rate in FY26.
In the first quarter of FY27, Nykaa's beauty business, which accounts for around 90% of overall revenue, grew 27.3% year-on-year, while consolidated GMV rose 34% to Rs 5,590 crore.
The latest transaction also follows Nykaa's broader strategy of adding and scaling new-age beauty and personal care brands. In August, the company announced plans to acquire a 51% stake in premium dermocosmetic brand Aminu for Rs 32 crore.