Nykaa acquires stake in Earth Rhythm, Nudge Wellness and Kica

FSN E-Commerce Ventures Ltd, owner of online cosmetics retailer Nykaa, on Friday announced that it has acquired stakes in Earth Rhythm, Nudge Wellness and KICA.

The company announced the acquisition of an 18.51% stake in natural cosmetics brand Earth Rhythm ₹41.65 crore, 60% stake in Nudge Wellness for ₹3.6 crore, which means entry into the dietary supplements and nutricosmetic products market and 100% stake in sportswear brand KICA ₹4.51 crore, according to BSE filings.

“Their (Nykaa) investment is a clear endorsement of our efforts to build a clinically effective, technology-driven skin and hair care brand. With this investment, our commitment to our customers and the planet will only get stronger,” said Harini Sivakumar, CEO and Founder, Earth Rhythm, formerly Soapworks India, which was launched in 2015.

Nykaa has announced a partnership with direct-to-consumer (D2C) accelerator Onesto Labs to create Nudge Wellness, one of several recent partnerships with domestic D2C brands.

The aim of these partnerships is to strengthen the early-stage beauty and lifestyle ecosystem and build the next generation of brands specializing in sustainable and inclusive products.

Onesto Labs Pvt. Ltd is wholly owned by promoter group entity 72 Ventures LLP. However, after the close of the transaction on June 30, Onesto will hold 40% stake in the company.

NYKD’s fashion division has acquired KICA, founded in 2017 by Aneesha Labroo. KICA, which offers sportswear and activewear, will be part of the Nykaa group, which also includes brands such as NYKD, Pipa Bella, Twenty Dresses, RSVP, Gajra Gang, IYKYK and Likha.

“KICA saw strong synergies with Nykaa Fashion’s e-commerce positioning and its engagement with a wide network of customers across the country,” Labroo said.

Nykaa, which debuted in November 2021, has been going through a series of acquisitions. Just before the listing, the company acquired skincare brand Dot and Key for an undisclosed amount in October last year.

Nykaa has also expanded its fashion business with several acquisitions over the past two years. In 2019, it acquired women’s styling platform 20Dresses.com. In April, Nykaa acquired jewelry e-tailer Pipa Bella, a brand aimed at urban women aged 22 to 35.

Nykaa was founded in 2012 by investment banker-turned-entrepreneur Falguni Nayar, who was the managing director at Kotak Mahindra Capital. Its online marketplace sells products for both women and men in categories like skincare, haircare, perfumes, bath and body, and luxury products.

The company has grown into an omni-channel lifestyle retailer with over 17 million monthly active users across 70 stores nationwide and fulfilling over 1.5 million orders per month.

As of August 31, 2021: The company offers more than 4,000 brands and more than 3.1 million units of products in stock through its website and mobile apps.