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India’s Nykaa Files to Go Public as Country’s Start-Ups Surge

The e-commerce start-up for beauty products is going public in another sign of the booming interest in India’s technology industry.
Founded in 2012, Nykaa’s platform lists more than 1,200 brands ranging from makeup, skincare to health supplements and hair dryers. Shutterstock
Founded in 2012, Nykaa’s platform lists more than 1,200 brands ranging from makeup, skin care to health supplements and hair dryers. Shutterstock (Shutterstock)

Nykaa, an Indian e-commerce start-up for beauty products, filed preliminary documents for an initial public offering in another sign of the booming interest in the country’s technology industry.

FSN E-Commerce Ventures Ltd., the formal entity that operates Nykaa, said it would raise as much as 5.25 billion rupees ($70.6 million) by selling new equity in the offering, according to a copy of its draft red herring prospectus. In addition, existing shareholders will sell as many as 43.1 million shares.

Nykaa, founded in 2012 by former investment banker Falguni Nayar, is seeking a valuation of more than $4 billion and plans to sell in total just more than 10 percent of the equity, Bloomberg News has reported. The details of the offering will only be finalised after the company and its bankers meet with investors in the weeks ahead.

India’s technology industry has surged this year, with investors showing increasing interest in the country’s start-ups. The food-delivery app Zomato Ltd. became the nation’s first unicorn to make its stock market debut in July and has soared more than 80 percent since the IPO.

The online insurance platform Policybazaar, backed by Japan’s SoftBank Group Corp., just filed for an IPO that could raise as much as 60.18 billion rupees, with a more than a dozen technology start-ups aiming for IPOs through next year.

Nykaa has grown into India’s top destination for beauty products with its own chain of physical outlets and 24.5 billion rupees ($330 million) in revenue and other income in the fiscal year ended in March. The company was last valued at $1.2 billion, according to CB Insights.

Bloomberg News first reported the company’s IPO plans and that the company is working with Kotak Mahindra Capital Co. and Morgan Stanley on a potential offering.

By Saritha Rai

Learn more:

How India’s Nykaa Aims to Beat Sephora

The Indian beauty unicorn is preparing for an IPO that could see it reach a valuation of $3 billion thanks to persuasive digital marketing and a hyper-local merchandise mix.

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