On 28th November, Nykaa will step up to be the second Indian tech startup to launch an IPO, followed by Zomato. The company has seen its business recover gradually since April 2020 and is planning an international push, informed its founder earlier today.
On 25th October, three days before the IPO, founder Falguni Nayar at a press conference said that the company’s gross merchandise value has gradually risen to $547 million from $363 million in FY20 and $223 million in FY19 for the cause of the pandemic. The founder opened up about Nykaa expanding into more genres, launching a senate of brands, and bolstering it to Europe and the Middle East. 95% of Nykaa’s sales take place online and only 5% come from its 80-odd stores across India.
Nykaa’s beauty and personal care business clocked a Gross Merchandise Value of $147mn in April-June 2021. Its fashion business saw a Gross Merchandise Value of $52 million in the same quarter. Unlike Nykaa’s core business, its fashion vertical operates through a physical market model as well.
The reason behind the company’s decision to go public even when the markets are flushed with cash, she told, “We are looking at building a more sustainable organization and offering a window of opportunity to our existing shareholders to exit.” The company has raised $100 million in equity till date.
Nykaa is looking to list on the stock exchanges with a value at $7.1 billion. The IPO will open on Thursday, October 28 and close on Monday, November 1st. It is glancing to raise Rs. 630 crore by issuing fresh shares priced at Rs 1,085-1,125 each, and the rest through an offer for sale, in which existing investors will sell up to 41.97 million shares.
The Sanjay Nayar Family Trust, a promoter, will continue to own a majority stake even after the IPO. They currently hold more than 53% in FSN E-Commerce Ventures.
When the woman can start up a venture, take it to the next level to get registered on the national index for the IPO, why can’t the other women take advantage of this and earn better returns on their savings by investing into it. Let us not just be tagged as shopaholics rather be tagged as an investor with the love for the same brand with new progressive thoughts. MyFinopedia motivates such decisions for empowering women in terms of investments and earning on their savings.