Nykaa Stories Revenue Leap, Acquires LBB to Sharpen Place as Discovery-Led Retailer
Indian cosmetics-to-fashion retailer Nykaa’s mum or dad firm reported a 33.2 % rise in first-quarter web revenue on Friday, boosted by robust demand for its style merchandise. The TGP-backed firm, which dominates the home on-line magnificence and private care area with practically 30 % 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 corporate stated its gross merchandise worth (GMV) jumped 47 % to Rs. 2,156 crore within the quarter. GMV from its style enterprise jumped 59 %, whereas that from the sweetness and private care enterprise rose 39 %.
“The buyer demand for magnificence, private care and wellness can be displaying early indicators of restoration and we’re gearing up for a promising festive season this yr,” 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 yr earlier.
Income rose 40.6 % to Rs. 1,148 crore.
On Friday, Nykaa stated that it might purchase digital content-cum-commerce agency Iluminar Media recognized by the model title of Little Black Ebook (LBB). FSN E-commerce, didn’t disclose the deal worth however stated that the acquisition aligns with Nykaa’s basic content-first strategy to participating with its loyal client base.
“We’re excited in regards to the robust synergies we share with LBB, as a result of very similar to Nykaa, they’ve sharply centered on driving discovery and spotlighting promising home-grown manufacturers throughout their channels since day one.
“We welcome their like-minded management into the Nykaa household and stay up for serving to them scale, as collectively we higher serve our viewers base,” Nykaa spokesperson Nihir Parikh stated in a press release.
Co-founded by Suchita Salwan and Dhruv Mathur in 2015, LBB had a complete income 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 procuring expertise extra participating for the purchasers,” Nykaa stated in a regulatory submitting.
Nykaa will purchase 100 % stake in LBB in an all-cash deal.
“By way of this partnership with Nykaa, we’re excited to scale to even larger heights. Collectively, we wish to drive worth to Nykaa and LBB’s shared objectives to construct discovery for India’s rising manufacturers by content material, neighborhood and a discovery-first strategy.
“LBB’s strong content material creation capabilities and creator community will likely be leveraged inside Nykaa’s platforms to drive client engagement and retention, additional scaling attain and engagement for our model companions,” Salwan stated.
© Thomson Reuters 2022
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