Nykaa Secures Rs 125 Crore Through Debt Financing

Nykaa, India’s leading online fashion and beauty platform, has secured Rs 125 crore (approximately $15 million) through the issuance of non-convertible debentures (NCDs). The company’s board of directors has approved the issuance of up to 12,500 NCDs at an issue price of Rs 1,00,000 each to a foreign portfolio investor.

Strategic Investment Plans

While the specific purpose of the raised funds has not been disclosed, Nykaa has outlined plans to invest $2.5 million in its UAE-based subsidiary, Nysaa Beauty. The company operates a network of 14 subsidiaries and one associate, Earth Rhythm, to support its diverse business operations.

Financial Performance and Growth Outlook

Nykaa’s financial performance has been robust, with revenue from operations increasing by 24.1% to Rs 6,386 crore in FY24 compared to Rs 5,144 crore in the previous fiscal year. The company also reported a substantial 90.5% surge in profit to Rs 40 crore in FY24.

Looking ahead, Nykaa has projected revenue growth of 22-23% for the first quarter of FY25. To further strengthen its talent pool, the company has introduced a fresh round of employee stock options (ESOPs) aimed at fostering employee ownership and attracting top talent.

With this additional capital injection and a strong financial performance, Nykaa is well-positioned to expand its operations, invest in new initiatives, and solidify its position as a dominant player in the Indian beauty and fashion market.