Online beauty and cosmetics retailer Nykaa has secured fresh investment after it closed Series D round of funding with Rs 165 crore ($24 million). The round was led by existing investors including Hero Group’s Chairman Sunil Munjal, Marico’s Harsh Mariwala and private investor Dalip Pathak & others.
Nykaa will look to capitalize the latest fund infusion by ramping up its revenue and expanding its retail footprints to other parts of the country, according to statement issued by the company. The startup’s last funding round reportedly came in April this year, after it raised $11.32 million (Rs 75 crore) from some of its existing investors.
Nykaa was incorporated in 2012 by investment banker turned entrepreneur Mr. Nayar with an aim to make beauty products easily accessible to customers. The company’s official website nykaa.com sells wide range of cosmetic products for both men and women including skincare, hair care, fragrances, bath and body, and other luxury products.
Nykaa claims that it will achieve breakeven in the financial year 2018-19. The startup had an impressive 2017-18, after it reported solid net revenue of Rs 570 crore as compared to Rs 214 crore in 2016-17.
Experts argue that today’s youth are extremely fashion conscious and this fact augurs well for startups like Nykaa. However, competition in the cosmetic and beauty related products is pity stiff, with big boys like Flipkart, Amazon and Paytm Mall also vying for profit from cosmetic segment.