Nykaa Reviews Revenue Soar, Acquires LBB to Sharpen Place as Discovery-Led Retailer

Indian cosmetics-to-fashion retailer Nykaa’s mother or father firm reported a 33.2 % rise in first-quarter internet revenue on Friday, boosted by robust demand for its vogue merchandise. The TGP-backed firm, which dominates the home on-line magnificence and private care house with practically 30 % market share, has been on an acquisition spree and just lately ventured into males’s innerwear and athleisure class with a brand new model.

Nykaa in November 2021 made a robust market debut, fetching the nation’s first women-led unicorn a valuation of practically $14 billion (roughly Rs. 1,11,200 crore).

The corporate stated its gross merchandise worth (GMV) jumped 47 % to Rs. 2,156 crore within the quarter. GMV from its vogue enterprise jumped 59 %, whereas that from the wonder and private care enterprise rose 39 %.

“The patron demand for magnificence, private care and wellness can also be exhibiting early indicators of restoration and we’re gearing up for a promising festive season this 12 months,” stated Nykaa CEO and Managing Director Falguni Nayar.

Consolidated internet revenue for Nykaa-parent FSN E-Commerce Ventures Ltd stood at Rs. 4.55 crore for the quarter ended June 30, in contrast with Rs. 3.42 crore a 12 months earlier.

Income rose 40.6 % to Rs. 1,148 crore.

On Friday, Nykaa stated that it will purchase digital content-cum-commerce agency Iluminar Media recognized by the model title of Little Black E-book (LBB). FSN E-commerce, didn’t disclose the deal worth however stated that the acquisition aligns with Nykaa’s basic content-first strategy to participating with its loyal client base.

“We’re excited concerning the robust synergies we share with LBB, as a result of very like Nykaa, they’ve sharply targeted on driving discovery and spotlighting promising home-grown manufacturers throughout their channels since day one.

“We welcome their like-minded management into the Nykaa household and sit up for serving to them scale, as collectively we higher serve our viewers base,” Nykaa spokesperson Nihir Parikh stated in a press release.

Co-founded by Suchita Salwan and Dhruv Mathur in 2015, LBB had a complete income of Rs. 19.44 crore in 2021-22.

“The transaction will allow the corporate to strengthen its content material supply, drive discovery for manufacturers and make buying expertise extra participating for the purchasers,” Nykaa stated in a regulatory submitting.

Nykaa will purchase 100 % stake in LBB in an all-cash deal.

“By means of this partnership with Nykaa, we’re excited to scale to even larger heights. Collectively, we wish to drive worth to Nykaa and LBB’s shared objectives to construct discovery for India’s rising manufacturers by means of content material, group and a discovery-first strategy.

“LBB’s sturdy content material creation capabilities and creator community can be leveraged inside Nykaa’s platforms to drive client engagement and retention, additional scaling attain and engagement for our model companions,” Salwan stated.

© Thomson Reuters 2022

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