Nykaa Reports Profit Jump, Announces Acquisition of LBB: Details

Indian cosmetics-to-fashion retailer Nykaa’s guardian firm reported a 33.2 p.c rise in first-quarter web revenue on Friday, boosted by robust demand for its trend merchandise. The TGP-backed firm, which dominates the home on-line magnificence and private care house with practically 30 p.c market share, has been on an acquisition spree and not too long ago ventured into males’s innerwear and athleisure class with a brand new model.

Nykaa in November 2021 made a powerful market debut, fetching the nation’s first women-led unicorn a valuation of practically $14 billion (roughly Rs. 1,11,200 crore).

The firm stated its gross merchandise worth (GMV) jumped 47 p.c to Rs. 2,156 crore within the quarter. GMV from its trend enterprise jumped 59 p.c, whereas that from the sweetness and private care enterprise rose 39 p.c.

“The consumer demand for beauty, personal care and wellness is also showing early signs of recovery and we are gearing up for a promising festive season this year,” stated Nykaa CEO and Managing Director Falguni Nayar.

Consolidated web revenue for Nykaa-parent FSN E-Commerce Ventures Ltd stood at Rs. 4.55 crore for the quarter ended June 30, in contrast with Rs. 3.42 crore a 12 months earlier.

Revenue rose 40.6 p.c to Rs. 1,148 crore.

On Friday, Nykaa stated that it will purchase digital content-cum-commerce agency Iluminar Media recognized by the model title of Little Black Book (LBB). FSN E-commerce, didn’t disclose the deal worth however stated that the acquisition aligns with Nykaa’s elementary content-first strategy to partaking with its loyal shopper base.

“We are excited about the strong synergies we share with LBB, because much like Nykaa, they have sharply focused on driving discovery and spotlighting promising home-grown brands across their channels since day one.

“We welcome their like-minded management into the Nykaa household and sit up for serving to them scale, as collectively we higher serve our viewers base,” Nykaa spokesperson Nihir Parikh said in a statement.

Co-founded by Suchita Salwan and Dhruv Mathur in 2015, LBB had a total revenue of Rs. 19.44 crore in 2021-22.

“The transaction will allow the corporate to strengthen its content material supply, drive discovery for manufacturers and make buying expertise extra partaking for the purchasers,” Nykaa said in a regulatory filing.

Nykaa will acquire 100 percent stake in LBB in an all-cash deal.

“Through this partnership with Nykaa, we’re excited to scale to even better heights. Together, we need to drive worth to Nykaa and LBB’s shared targets to construct discovery for India’s rising manufacturers by means of content material, group and a discovery-first strategy.

“LBB’s robust content creation capabilities and creator network will be leveraged within Nykaa’s platforms to drive consumer engagement and retention, further scaling reach and engagement for our brand partners,” Salwan stated.

© Thomson Reuters 2022