23, July 2024: Nykaa, the leading beauty and cosmetics retailer in India, has announced plans to raise Rs 125 crore through non-convertible debentures (NCDs) from a foreign portfolio investor. The decision was approved by the Nykaa Board and disclosed in a regulatory filing with the Bombay Stock Exchange.
The company detailed that it will issue up to 12,500 redeemable, non-convertible debentures with a face value of Rs 1 lakh each on a private placement basis. However, specific details about the foreign portfolio investor, including their identity, remain undisclosed by FSN E-commerce Ventures, Nykaa’s parent company.
In addition to its financial maneuvers, Nykaa unveiled its strategic expansion plans during its annual results announcement. The company highlighted an investment of Rs 20 crore in FSN International, earmarked for its expansion into the Gulf Cooperation Council (GCC) markets. This move is part of Nykaa’s broader strategy to strengthen its presence in international markets and tap into new revenue streams.
Furthermore, Nykaa’s international arm, Nyssa International, is set to receive additional investments totaling $1.9 million. These investments will support Nykaa’s efforts to expand its product offerings and market reach globally.
Highlighting its commitment to international growth, Nykaa recently established a new subsidiary, Nysaa Qatar, under Nyssa International. This entity aims to leverage Qatar’s market potential by trading a wide range of beauty and personal care products, including cosmetics, toiletries, perfumes, and beauty soaps.
Nykaa Forecasts Strong Growth, Targets 22-23% Revenue Increase in FY25
Looking ahead, Nykaa has projected a robust revenue growth of approximately 22-23% year-on-year for the first quarter of FY25. The company’s gross merchandise value (GMV) growth for the same period was reported in the mid-twenties on a year-over-year basis, underscoring its strong performance and market expansion efforts.
Nykaa’s strategic moves in raising funds through NCDs and expanding into international markets reflect its proactive stance in navigating the competitive beauty and cosmetics industry, both domestically and globally.
As the company continues to innovate and diversify its product offerings, stakeholders anticipate further growth and market leadership underpinned by its solid financial strategies and operational agility.
