Veteran funding banker-turned-entrepreneur Falguni Nayar, who has led scores of Indian corporations to public listings as a banker, is now pursuing an IPO of her personal as at a valuation of $7 billion to $7.2 billion for the sweetness and style retailer Nykaa which she based in 2012.
The Mumbai-based multi-brand retailer of cosmetics and attire plans a contemporary challenge for six.3 billion rupees ($86 million) and the sale of present shares of virtually 42 million shares within the worth band of 1,085 to 1,125 rupees.
The IPO will launch on October 28 and the difficulty closes on November 1. Nykaa is seeking to listing on the Indian bourses on November 11, just a few days after the Hindu competition of Diwali.
Nayar, 58, the founder, managing director and CEO of Nykaa, owns 54% of the corporate, alongside together with her husband Sanjay Nayar, India CEO of U.S. personal fairness large KKR, and their two youngsters. She is seeking to promote as much as 4.8 million shares by way of the Sanjay Nayar Household Belief. Present buyers like Hong Kong commodities billionaire Harry Banga, Indian client items billionaire Harsh Mariwala, and auto billionaire Sunil Kant Munjal can even be promoting shares in the course of the IPO.
Nayar–who’s the second self-made lady billionaire from India after biotech entrepreneur Kiran Mazumdar Shaw–will see her web value rise to just about $3.8 billion post-IPO. She turned a billionaire in a pre-IPO personal placement in June.
Nykaa, which presents greater than 4,000 manufacturers throughout the sweetness, private care and style platforms, is seeking to deepen its presence within the Indian magnificence and style market which is predicted to greater than double to $152 billion in 2025 from $70 billion in 2020, in response to Bangalore-based RedSeer Administration Consulting.
Nykaa now has 80 shops throughout 40 cities, however nonetheless derives 97% of its gross merchandise worth from on-line gross sales with a 63% contribution from tier 2 and tier 3 cities.
Regardless of the pandemic, Nykaa has seen an enormous surge in gross sales as vaccinations enhance. India crossed the historic “one billion vaccine doses” mark this week. For the three months ended June 30, 2021, Nykaa’s gross merchandise worth was 14.7 billion rupees ($198 million) and income was 8.2 billion rupees ($110 million) with earnings of 35.2 million rupees ($474,000). Nykaa’s income rose to $334 million for the fiscal yr ended March 2021 from $236 million within the earlier interval. The corporate reported a web revenue of $8 million in that very same interval versus a web lack of $2 million in fiscal 2020.
Among the many flurry of proposed and accomplished IPOs this yr, Nykaa is a uncommon instance of a startup that turned worthwhile earlier than it went for an IPO.
Nykaa will probably be deploying the IPO proceeds in direction of new shops, new warehouses and for enhancing model visibility. It already works with greater than 3,000 influencers – together with Gen Z pattern setters, way of life bloggers and celebrities.
Nayar based “Nykaa,” which is derived from the Sanskrit phrase “Nayaka” that means one who’s within the highlight, with an funding of $2 million and with the view to bringing high quality cosmetics together with worldwide magnificence manufacturers like Clinique and Bobbi Brown to Indian customers.
She give up her job as an funding banker–after 20 years within the enterprise–and plunged into the world of magnificence and on-line retailing. She quickly expanded to brick and mortar shops and rolled out new product classes like Nykaa Man and Nykaa Fashions.
“I needed to expertise the journey of making one thing from scratch,” stated Nayar stated in an interview to Forbes Asia in 2019.
That dream has come to fruition.