IPO-bound Nykaa acquires D2C skincare brand Dot & Key

Mumbai: Nykaa, India’s biggest etailer of cosmetics, has acquired homegrown skincare brand Dot & Key just days before the
launch of its initial public offering (IPO) on October 28.

The terms of the deal weren’t disclosed.

This is the first acquisition by the Falguni Nayar-led startup in the direct-to-consumer space. The deal, however, is indicative
of the wider churn that’s afoot in the sector. “Following this investment by Nykaa, Dot & Key will join Nykaa’s stable of owned brands,” according to a statement released on Friday.

Founded by Suyash Saraf and Anisha Saraf, Dot & Key makes skincare products such as serums, face masks, toners and cleansers. The brand recently expanded into nutraceuticals under the brand ‘IKWI’, whose products are dermatologically tested and cruelty free.

“We are excited to bring Dot & Key into the Nykaa family in time to serve the demand in high quality skincare by Indian consumers,” Nayar said. “Its product range presents an exciting opportunity for Nykaa as it allows us to extend the brand’s reach to a larger landscape of consumers and enter the nutraceutical space as well.”

Ernst & Young LLP was the exclusive advisor to Dot & Key on the deal.

STARTUP ROCKSTARS IN 2021

Sign-in to see our list of the most promising startups of 2021



“We created a niche brand with Dot & Key, focused on making products based on consumer needs. Nykaa’s position in the beauty landscape in India and its resources will allow Dot & Key to grow further as a brand and scale to the next level,” said Suyash Saraf.

Nykaa’s parent firm, FSN E-commerce Ventures Ltd. plans to launch its IPO on October 28 to raise as much as Rs 5,200 crore at a valuation of up to $7.2 billion (~Rs 55,000 crore), ETtech
reported on Thursday, citing people aware of the matter. The issue will be a mix of Rs 630-crore in fresh stock and an offer for sale of 41.3 million shares by existing investors, according to IPO papers
approved by the markets regulator.

Nykaa offers 4,078 brands and over 3.1 million product stock keeping units (SKUs) through its website and mobile applications, as of August 31, 2021. The company is among the few profitable etailers in India. In the fiscal ended March 31, its net profit stood at Rs 61.96 crore as against a new loss of Rs 16.34 crore a year ago, on the back of revenue that rose 38% to Rs 2,453 crore in FY21.

For all the latest Technology News Click Here 

Read original article here

Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.