Veteran financial commitment banker-turned-entrepreneur Falguni Nayar, whose natural beauty retailer Nykaa is poised to launch its IPO, has develop into India’s latest billionaire. A pre-IPO private placement in June valued Nykaa at $2.3 billion, putting Nayar in the a few comma club with an approximated net well worth of $1.1 billion.
The listing, which could worth the 9-calendar year-previous enterprise at an estimated $4.5 billion or far more, would be a massive windfall for Nayar, propelling the well worth of her initial $2 million investment even further more.
As for each the draft crimson herring prospectus, which was filed with the inventory market regulator this 7 days, the enterprise is in search of to raise $71 million as a result of a fresh new situation of shares and is also proposing to offer 43.11 million shares by current shareholders (like Nayar). The IPO will result in a significant payoff for Nykaa’s early buyers, this sort of as purchaser goods billionaire Harsh Mariwala and Hong Kong-centered commodities billionaire Harindarpal Singh Banga.
Nayar, 58, the founder, taking care of director and CEO of the Mumbai-based on the web seller of cosmetics and apparel, owns 54% of the business, alongside with her spouse Sanjay Nayar, India CEO of U.S. personal equity big KKR, and their two small children. The IPO is effectively-timed as Nykaa has not too long ago turned successful, earning it an eye-catching proposition for traders.
Amid pandemic-induced lockdowns, buyers caught at dwelling went on an on the net searching binge, purchasing every thing from lipsticks and mascaras to pores and skin treatment creams. That searching surge boosted Nykaa’s annual revenue to $334 million for the fiscal calendar year ended March 2021, up from $236 million in the preceding fiscal calendar year. The business documented web profit of $8 million in that exact period of time versus a internet loss of $2 million in fiscal 2020.
Nayar is on the lookout to deploy the IPO proceeds into brick and mortar—new warehouses and stores—as properly as for boosting Nykaa’s brand visibility. Nykaa, derived from the Sanskrit term “Nayaka” meaning a person in the spotlight, created a market for alone by selling luxury splendor manufacturers like Estee Lauder, Clinique and Bobbi Brown by using its infinite on the net aisles.
Nayar is now looking to deepen Nykaa’s presence on the floor as far more aspiring Indians latch on to elegance solutions. In accordance to estimates by Bangalore-based mostly RedSeer Administration Consulting, the Indian magnificence and individual treatment current market is predicted to hit $28 billion in 2025, up from $16 billion in 2020. The style current market is anticipated to touch $124 billion—up from $54 billion in 2020.
Nowadays, Nykaa has 73 retailers across 38 metropolitan areas in India and distributes 1,350 manufacturers. It also has its personal non-public label variety with anything from fragrances to manner clothing, but the bulk of revenue arrive from its web site and applications.
Just about 87% of Nykaa’s gross products value in fiscal 2021 was generated by its cell applications. And on-line buyers used almost 100 million hours on its private treatment and style internet websites like Nykaa Tv on youtube.com Nykaa Community and Nykaa Splendor E-book.
Nayar’s entrepreneurial journey began in 2012 soon after she’d expended a lot more than 20 yrs at Kotak Mahindra Lender supporting entrepreneurs pursue their IPO desires. That eventually stoked her ambition to get started her very own enterprise. After studying the market place, she recognized that a dependable retailer of branded cosmetics, these as Sephora, did not exist in India.
Nayar experienced come to be a loyal Sephora client on her regular visits to the U.S., wherever her twins had been studying among 2004 and 2008. (Both of those perform with her now.) She figured that though drugstore chains like CVS Pharmacy also offered magnificence products and solutions, Sephora had the edge mainly because salespeople at its retailers were so helpful and customer-helpful. Nayar determined that an Indian-version of Sephora was a timely concept. “This had a large amount of prospective but I understood I’d have to produce the current market,” Nayar stated in an job interview to Forbes Asia in 2019.
Centered on her investment decision banking knowledge, she promptly sized up the industry probable but “I did not know attractiveness or tech or retail,” she mentioned at that time. Nayar overcame that by getting an avid purchaser of cosmetics herself and consulting with tech experts, then took the plunge. She begun Nykaa as an on the internet retailer, introducing high avenue outlets after it experienced set up its identify.
Startups like Nykaa have caught investors’ extravagant these days and a slew of IPOs are established to hit the stock sector. Food stuff supply organization Zomato, which has still to come to be rewarding, produced a thundering debut in July, listing at a valuation of $12.2 billion. Earnings-generating Nykaa seems to be very well-groomed by Nayar for reaping IPO riches.