Mumbai-based FSN E-Commerce Ventures Pvt Ltd, owner of beauty e-commerce portal Nykaa.com, has raised Rs 20 crore ($3.4 million) in funding from private investors, including HNIs (high net-worth individuals) and NRIs.
Nykaa plans to use the proceeds to enhance its marketing initiatives, introduce new technology and manage inventory, which includes over 300 brands and 10,000 SKUs, the company said in a press release. With this capital, Nykaa aims to grow 4x this year and another 3.5x by 2016.
Nykaa is also venturing into offline retailing space with its first store set to launch at New Delhi Airport later this month. This store will give consumers access to the top luxury cosmetic brands along with the option of placing orders online through interactive screens and make-over tools.
“While our focus is online, Nykaa will soon be embracing multiple channels in our approach such as desktop, mobile and brick and mortar. We aim to have seamless integration between these channels to cater to the young and savvy customers who demand unparalleled brand accessibility and availability,” said Falguni Nayar, CEO of Nykaa.
The startup was founded in 2012 by investment-banker-turned entrepreneur Falguni and her banker husband Sanjay Nayar. The Nayars had invested $2 million in the company and controlled roughly 95 per cent stake in it, while employees held the remaining stake. After the completion of the latest transaction, the family’s stake will come down to 75-76 per cent.
Nykaa is a beauty and wellness e-commerce platform that sells branded products across wide categories of makeup, skincare, hair care, fragrances, bath & body and luxury products for women and men. It claims to offer about 200 brands and more than 10,000 products in this category. The portal runs on an inventory-based model and has a warehouse in Mumbai. It has also established strong partnerships with courier companies to offer shipping across more than 900 cities and 9,000 zip codes.
Nykaa competes with Purplle.com which had raised an undisclosed amount in its Series A funding from Blume Ventures, Mumbai Angels and Chennai Angels last year.
(Edited by Joby Puthuparampil Johnson)