Nykaa plans to go public at $3 billion valuation
The company crossed a billion dollars in valuation in March 2019 when it raised ₹166 crore in a primary transaction from Steadview Capital at a valuation of $1.2 billion.
Cosmetics e-tailer Nykaa is looking at a stock exchange listing by the end of this year or early 2022 at a valuation of over $3 billion, a person aware of its plans said, joining e-commerce leaders such as Flipkart, Zomato and Pepperfry preparing for the public markets.
The IPO by Nykaa, which was founded eight years ago, will be the first by an online beauty marketplace in India.
The Mumbai-based firm last raised an undisclosed amount from Boston-based asset management firm Fidelity Investments Inc. in November through a secondary transaction in India, providing a partial exit to early investors and employees. The deal valued the company at a little over $1.8 billion, the person cited above said on condition of anonymity.
Nykaa founder Falguni Nayar had said in 2018 that the company would look for an IPO by 2020 or so. However, the pandemic might have slightly altered those plans.
Bloomberg News first reported the development on Tuesday evening.
“Nykaa will most likely look at achieving overall profitability this year before going public. Considering the boost in business after the lockdown and consumer shift towards digital, the company might look at a listing of much more than $3 billion in valuation,” the person cited above added.
Nykaa declined to comment.
The company crossed a billion dollars in valuation in March 2019 when it raised ₹166 crore in a primary transaction from Steadview Capital at a valuation of $1.2 billion.
The company’s other investors include Lighthouse Advisors and TPG Capital.
