Looking to get listed on Indian stock exchanges with an IPO of Rs 5,352 crore Which will cost $ 7.1 billion (Rs 53,200 crore).
When asked why the company chose to go public despite the abundance of capital in the private market, Nair said, “We look at creating a more sustainable organization and offering our existing shareholders a window of opportunity to exit. are doing. Going in public was the better option. The company said it has raised $100 million in equity so far.
Nair said that in the first quarter of FY 2011, the countrywide lockdown, the company’s consolidated GMV fell to $59 million, but gradually recovered in subsequent quarters. In a press conference ahead of its IPO, Joe
Launch on Thursday and end on MondayNair said heroConsolidated GMV in April-June 2021 increased from $168 million in January-March 2021 to $199 million. The consolidated GMV includes Nykaa’s beauty and personal care business and its fashion vertical.
“We used smart and agile technology and AI-led curated content during the pandemic to filter according to the needs of the customers and the region they were coming from,” Nair said. In FY21, Nykaa’s total GMV grew from $363 million in FY15 to $547 million in FY19 and $223 million in FY19. “This (financial) year has also started well,” he said.
As the pandemic accelerates digital adoption, Nykaa said 95% of its sales are online and only 5% come from its nearly 80 stores across India.
Nykaa’s beauty and personal care business had a GMV of $147 million in April-June 2021. Its fashion business saw GMV of $52 million in the same quarter, up from just $6 million in the same quarter last year. Unlike Nykaa’s core business, the fashion vertical operates through a marketplace model.
Nykaa is one of the few local startups launching an IPO as a profitable entity. It reported a net profit of Rs 61.96 crore in FY 2011 from a net loss of Rs 16.34 crore in FY11. Revenue also grew by 38% to Rs 2,453 crore in FY2011.
Nykaa is looking to raise Rs 630 crore from its IPO by issuing fresh shares and the rest through an offer for sale, in which existing investors will sell up to 41.97 million shares.
On Nykaa’s growth plans, the company said it will expand into more categories and launch new channels adjacent to the lifestyle segment. Will also consider creating my own house of brandsNair said. The house-of-brand model was pioneered by US-based Thresio, which acquires and scales private labels on Amazon. In India, several enterprises have emerged in this area, including Mensa Brands and GlobalBiz. ET reported earlier this month that
Thresio himself plans to enter India. But Nair said that Nykaa will continue to be a multi-brand retailer and will sell other brands as well.
“The company plans to further expand its omni-channel capabilities by launching more proprietary stores. We will be investing in Nykaa-owned brand portfolio and will also focus on overseas expansion primarily through international exports, but some Will also consider a joint venture or acquisition to enter the markets,” said Nair. In terms of international expansion, it is eyeing the Middle East and also looking for entry into the UK and Europe Is.
According to the company’s management, it is targeting a total addressable market of about $152 billion. “We believe that the penetration of online shopping customers of the total customer base is expected to increase to 24% from the current 11-13%,” Nair said.
The company claims to have a 40% gross margin and a fulfillment cost of as little as 10%. It has a cumulative transactional customer base of 13 million.
Sanjay Nair Family Trust, a promoter, will sell 4.8 million shares in the IPO.
According to Nykaa’s draft IPO prospectus, other investors include TPG, Light House India Fund, JM Financial, Yogesh Agencies, Sunil Kant Munjal, Harinderpal Singh Banga, Narottam Sekhsaria and Mala Gaonkar. .
Founder Falguni Nair and his family will be
Will continue to own majority stake in the company Currently, Nair and husband Sanjay, along with their two children, hold over 53% stake in Nykaa’s parent firm FSN E-Commerce Ventures, even after the IPO.
The Mumbai-based company has appointed investment banks including Kotak Mahindra Capital, BofA Securities, ICICI Securities, Citibank, Morgan Stanley and JM Financial to manage its public offering.