Mumbai-based online beauty e-commerce startup Nykaa has raised ₹113 crores from Lighthouse India Fund III, an affiliate of Lighthouse Advisors.
The funding is part of the secondary sale which saw the exit of the startup’s existing investor TVS Shriram Growth Fund. The fund had invested in Nykaa in the Series B and C rounds in 2015 and 2016.
Fresh funds will help the startup as it looks to expand its portfolio with exclusive brand partnerships, along with helping it to increase offline footprint.
Nykaa was founded by Falguni Nayar, the former managing Director Of Kotak Mahindra Capital Company, India’s leading investment bank, in 2012. It provides an online marketplace offering beauty products for both men and women.
The beauty startup provides more than 1 lakh products from over 850 brands, across different categories including, makeup, skin, personal care, wellness, hair, natural, and men.
Talking about the funding, Falguni Nayar, founder and CEO, Nykaa, said, “We are excited to welcome Lighthouse to our shareholder base as we launch into our next phase of growth. We believe they will bring to bear their expertise in the retail sector propelling Nykaa to even greater heights. As we add new verticals and product categories we will continue to build on meaningful experiences that engage and delight our customers.”
Nykaa claims to have clocked ₹560 crores in revenues for the FY17-18, along with maintaining positive EBITDA for two consecutive quarters. It is expecting a 100% revenue growth in the current financial year.
The beauty startup last raised around ₹160 crores in through primary and secondary sale earlier this year, in order to boost its expansion plans.
Other players in the beauty e-commerce segment competing with Nykaa include Purplle, NewU, Avon, and The Body Shop among others.
Last month, it was reported that Myntra is looking to foray into offline retail for cosmetic products under the brand name Myntra Beauty.