Nykaa is an E-commerce brand founded in 2012, by Falguni Nayyar, and she is also the Managing Director and Managing Director of the company. The company started by selling a range of beauty and wellness products in the country. The company launched its website on Diwali of 2012 and was available for commercial use since 2013.
The other Executive Directors of the company include Anchit Nayyar and Adwaita Nayyar. As of 2018, the company had appointed the services of Jahanvi Kapoor as the brand ambassador of the company. In 2020, the company became a Unicorn start-up and the first Indian start-up to be headed by a woman.
The company was not selling just in our country but was manufacturing in our country, and selling them in international countries. The company shifted its model from selling online only to an omnichannel model and began selling fashion products as well in 2015.
In 2020, the company launched its Men products as well and was named Nykaa Man, India’s first grooming store for men. The company also expanded its range by launching into the fashion industry as well and was called Nykaa Design Studio which was renamed Nykaa Fashion. It will offer over 2,000 brands and 200,000 products across its channels by 2020.
The money raised by Nykaa is been through various rounds of funding since the opening of the company. It raised 100 crores (US$ 13 million) from Steadview Capital in March 2020, making it a unicorn startup worth 85 billion rupees (US$ 1.1 billion). Steadview followed up with another Rs. 67 crores (the US $8.9 million) fundraising round in May 2020.
By the way of secondary financing, two Bollywood actresses from our industry have invested in the company. Alia Bhatt invested Rs. 4.95 crore (US$660,000) in July 2020, and Katrina Kaif invested Rs. 2.04 crore (US$270,000) in 2018.
Fidelity Investments, a worldwide asset management organization, invested in the company in November 2020 after purchasing shares of the company from an existing equity investor.
On October 28, 2021, Nykaa launched its initial public offering (IPO) with a price range of Rs. 1,085-1,125 per share. The IPO raised Rs. 5,352 crore (US$710 million) at a valuation of US$7.4 billion after being oversubscribed 81.78 times. Nykaa went public on the NSE and BSE on November 10, 2021, with an opening day price increase of 89.2 percent, valuing the firm at over US$13 billion. Falguni Nayar, the company’s founder, became India’s wealthiest self-made female billionaire with a 53.5 percent share.
Nykaa Market Price
The current market price of the company is 1,422.80 points after gaining 38.35 points in a day. The share price has fallen thrice in the past 5 working days while it has risen twice and the gain has been on the first and last working day before falling from the second day of the week till the 4th day.
The share price of the company has gained 4.58% of its last value in the past week while it has fallen in three months by about 33.16% and the money lost by the investors in these 3 months is huge as many IPOs of these online companies have got a very bad response in the market recently and are a money loser, but in this case, it has not been that much of a money loser.
The shareholding pattern of the company has the promoters its main shareholders as they own 52.56% of the company, while the public shareholding is 42.23% only. The rest of the company is owned by Institutional investors and other holders of the company. The main investors in the company are currently the people promoting the company and the general public as they are the holders of the company.
The consolidated financials of the company are – (Rs. Crores)
Company in the past few years has been earning good revenue, but the situation of net profits is not good in the beginning, but the situation has now improved. The revenue of the company has increased from 2019 to 2020 by Rs. 656 crores which are about 59.04% more as compared to 2019 and in the year 2021.
It saw an increase in its revenue as compared to 2020 by Rs. 673 Crores which is 38.08% but in the terms of percentage increase of revenue of the company, it has lost in 2021 as compared to 2020. As far as the net profits of the company are concerned, the net loss has decreased in 2020 from 2019 by Rs. 8 crores but the net profits of the company were negative which is 33.33% more than in 2019 and in 2021 the net profits have increased by Rs. 77 crores which are 481.25% more than 2020.
The company had been performing very differently as the company had been facing losses at the beginning of the company, but the losses were lowered in the next year itself, and the company became profitable in 2021, and the pandemic got its 2nd wave, which was harsh towards the people of the country but the company became profitable this year.
Nykaa Debt Equity
The debt to equity ratio of the company in the year 2019 was very close to 1, which is a thing of concern for the company and the company improved its situation in the year 2020. The company due to its overall losses, the company was able to pay a bit off debt during the year. As the company improved its conditions in 2021, when the company earned profits, the company paid more of its debt and improved its ratio. The company has now brought its ratio below 0.4, which is a good thing for the company, for future loans, it can get the loans easily.