Nykaa acquires stakes in Earth Rhythm, Nudge Wellness and Kica
FSN E-Commerce Ventures Ltd, which owns online beauty and cosmetics retailer Nykaa, has acquired stakes in Earth Rhythm, Nudge Wellness and KICA, it announced on Friday.
The company announced the acquisition of an 18.51% stake in clean beauty brand Earth Rhythm for ₹41.65 crore, a 60% stake in Nudge Wellness for ₹3.6 crore, marking entry into dietary supplements and nutricosmetics, and a 100% stake in athleisure brand KICA for ₹4.51 crore, BSE deposits showed.
“Their investment (from Nykaa) is a clear endorsement of our efforts to create a clinically effective, technology-driven skincare and haircare brand. With this investment, our commitment to our customers and the planet will only grow stronger,” said Harini Sivakumar, CEO and Founder of Earth Rhythm, formerly Soapworks India, which launched in 2015.
Nykaa said she partnered with Onesto Labs, a direct-to-consumer (D2C) accelerator, to create Nudge Wellness, which is one of a series of recent partnerships with local D2C brands.
These partnerships aim to strengthen the beauty and lifestyle ecosystem at an early stage and create the next generation of brands specializing in sustainable and inclusive products.
Onesto Labs Pvt. Ltd is wholly owned by the promoter group entity 72 Ventures LLP. However, once the transaction is finalized on June 30, Onesto will own a 40% stake in the company.
The company’s NYKD fashion vertical has acquired KICA, which was founded by Aneesha Labroo in 2017. KICA, which offers activewear and sportswear, will be housed among Nykaa’s other brands such as NYKD, Pipa Bella, Twenty Dresses, RSVP, Gajra Gang, IYKYK and Likha.
“KICA has found strong synergies with Nykaa Fashion’s positioning in the e-commerce landscape and its engagement with a large network of customers across the country,” Labroo said.
Nykaa, which made a stellar market debut in November 2021, has made a flurry of acquisitions. Just before its IPO, the company acquired skincare brand Dot and Key for an undisclosed sum in October last year.
Nykaa has also expanded its fashion business with a few acquisitions over the past two years. In 2019, she acquired women’s styling platform 20Dresses.com. In April, Nykaa acquired jewelry retailer Pipa Bella, a brand that targets urban women between the ages of 22 and 35.
Nykaa was founded in 2012 by investment banker turned entrepreneur Falguni Nayar, who was managing director of Kotak Mahindra Capital. Its online marketplace sells products for women and men in categories including skin care, hair care, fragrance, bath and body, and luxury goods.
The company has grown into an omnichannel lifestyle retailer with over 17 million monthly active users across 70 stores nationwide, processing over 1.5 million orders per month.
The company offers more than 4,000 brands and more than 3.1 million product stocking units through its website and mobile apps as of August 31, 2021.