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Hero Group\'s Sunil Munjal pumps more money into beauty products e-tailer Nykaa
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Beauty products e-tailer Nykaa is raising additional capital from its existing investor Sunil Kant Munjal, one of the founder promoters of Hero Group.

Munjal is bringing in Rs 19.6 crore into the company, according to RoC filings with the Ministry of Corporate Affairs. Nykaa will issue 32,350 shares at a premium of Rs 6,049.56 per share.

Munjal had first invested in Nykaa in 2016 when he had  led a $12 million funding round in the company.

Email queries sent to Nykaa and Sunil Munjal seeking comments did not elicit a response till the time of filing this article.

The latest fund infusion comes after Nykaa in March said it has raised Rs 100 crore from existing investor Steadview Capital. Subsequently, in May, Nykaa raised another Rs 67 crore from Steadview Capital, as per RoC filings.

Mumbai-based Nykaa was founded in 2012 by investment-banker-turned entrepreneur Falguni Nayar, who was a former managing director at Kotak Mahindra Capital.

The online marketplace, run by Nykaa E-retail Pvt. Ltd, sells products across categories ranging from skincare, hair care, fragrances, bath and body, and luxury products for both women and men.

Other investors it raised funding from over the years include TVS Capital, Lighthouse and TPG. TPG had invested Rs 100 crore in Nykaa in April last year.

Nykaa’s online platform doubled its sales to Rs 1,159.3 crore and broke even with both operating profit and a net profit for the year ended March 31, 2019. At a group level, the consolidated revenues rose to Rs 1,225 crore but the other business units were still in the red, leading to an overall net loss of Rs 21 crore even as it is not burning cash any longer with Rs 9.3 crore operating profit.

The broader beauty and personal care segment have attracted a slew of investors in the past few years.

Earlier in January, Manash Lifestyle Pvt. Ltd, which operates beauty products and services marketplace Purplle.com, raised Rs 56 crore ($8 million) from Belgian private investment firm Verlinvest SA in an extended Series C round.

Mid-market private equity firm Samara Capital inked back-to-back deals in cosmetics firms Blue Heaven and Nature’s Essence last year. In June last year, beauty and makeup products brand MyGlamm secured Rs 100 crore in a funding round led by US-headquartered Bessemer Venture Partners and the Mankekar family office.

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