The Non-convertible Debentures Will Help Falguni Nayar’s Nykaa to Raise INR 125 Crore

nykaa

Nitin Konde, Apoorva Bajj

Jul 25, 2024 — 3 min read

The Non-convertible Debentures Will Help Falguni Nayar’s Nykaa to Raise INR 125 Crore

Using non-convertible debentures (NCDs), beauty and personal care eCommerce giant Nykaa is raising INR 125 crore, or around $15 million.

The business announced in a Monday regulatory filing that Nykaa E-Retail Limited, a 100% subsidiary of FSN E-Commerce Ventures Limited, had received approval from its board of directors to issue up to 12,500 NCDs, each with a face value of Rs 1 lakh.

An undisclosed international portfolio investor will receive these dematerialized debentures through a private placement.

Transformational Changes and Growth in the Company

In a recent announcement, Nykaa gave its approval for the sale of its western clothes and accessories business to FSN E-Commerce Ventures for a total of INR 133 crore. In addition, Nykaa Fashion has merged with Iluminar Media Limited, which is the media subsidiary of Nykaa and is responsible for operating the LBB platform.

Eventually, Nykaa Cosmetics will start selling and trading cosmetics and personal care items on a global scale.

In addition, Nykaa acquired Nykaa Fashion Limited's western clothing and accessories division in May for INR 133.7 crore as part of its most recent business vertical restructuring.

How Well Nykaa Is Doing Financially

At the end of the fiscal year 24 (FY24), Nykaa's revenue from operations reached INR 6,386 crore, which is a 24.1% rise from INR 5,144 crore in FY23.

In addition, the company's profit increased by 90.5%, going from INR 21 crore in the previous fiscal year to INR 40 crore in the current fiscal year, which is a significant increase.

Making Investments in Subsidiaries

In its annual report, Nykaa detailed its plans to expand its operations in the Gulf Cooperation Council (GCC) by investing INR 20 crores in FSN International. Additionally, the firm disclosed that it intends to make additional investments totaling $1.9 million through its foreign division, which is known as Nyssa Foreign.

By making these investments, Nykaa is implementing a more comprehensive strategy to strengthen its presence on the world stage and to diversify its sources of revenue.

Nykaa is a major platform for beauty and wellness products. It was established in 2012 by Falguni Nayar, and it has developed significantly since then. It has fourteen subsidiaries in addition to an associate company that goes by the name Earth Rhythm.

Nykaa has forecasted that its sales will increase by around 22-23% year-over-year during the first quarter of FY25. Additionally, the company's Gross Merchandise Value (GMV) is anticipated to increase by around 20 percent on a year-over-year basis.