Nykaa raises Rs 100 crore in funding

Nykaa, a Mumbai based online platform that allows users to shop for cosmetics, fragrances, skin and hair care products has raised Rs 100 crore in the latest round of funding led by investment firm TPG growth, regulatory filings accessed by financial data platform paper.vc shows.

This development reportedly puts the company on track to become the latest Asian unicorn soon. The company allocated 2,83,287 shares to TPG growth in the lieu of investment, regulatory filings show.

"Nykaa appears to be on track to joining Asia's Unicorn ranks. TPG Growth's investment gives it a spectacular jump in post-money valuation. The private equity firm's investment gives Nykaa a Rs 5,027 crore ($724 million) valuation. The raise comes after a long hiatus in institutional investment in the cosmetic platform.
Both the hiatus and the extraordinarily high valuation are interesting given Nykaa's financial performance. But the valuation can be explained given Nykaa's recent numbers. The startup posted a Rs 28.2 crore loss for FY 2018 compared to Rs 36.3 crore for the previous year. But these losses pale in comparison to its revenue. Revenues jumped from Rs 214 crore in FY '17 to Rs 578 crore in FY '18." the business signals platform said.

Nykaa competes with Purplle, NewU and a host of other companies in the e-commerce market.