Nykaa is a fashion and beauty care brand that announced its plans to secure $15 million in its debt  funding round. The startup plans to raise this amount through its non-convertible debentures from  FPI. The company offers beauty, wellness, and fashion products through its website, mobile  application, and offline stores across India. The startup plans to use this fresh capital to improve its  services, scale its operations, enhance its platform, and expand in the market. 

The company mentioned in its exchange filing that the board members of Nykaa allowed the allocation  of up to 12,5000 non-convertible debentures at a certain issue price of Rs 1 lakh each to raise $15  million. According to the company filing, the startup will use these fresh proceeds to expand its  services, meet working capital purposes, and develop brand presence. The startup specializes in selling  beauty and cosmetics products through its online platforms. Nykaa is wholly owned by FSN e commerce ventures that provide wellness and beauty products. The company recently expanded its  Employee Stock Option Plan by offering 4.73 lakh newly allocated equity shares worth Rs 9.72 crore.  

The development came just after Nessa International Holdings collaborated with Qatar-Nysaa  cosmetic trade. Nysaa is a joint venture between Nykaa and Apparel Group. Nykaa owns 55 percent of  the total stake while Apparel Group owns 45 percent stake in Nysaa. Inc42 reported that the e commerce startup previously mentioned Nysaa cosmetics plans to engage in international exports and  trades or sales of personal care and beauty products through online and offline activities. The startup  also announced its plans to develop new business verticals as the board approved the acquisition of  Nykaa Fashion in a cash deal of Rs 133.7 crore.  

FSN e-commerce expects a strong revenue growth of around 23 percent YoY in its first quarter of FY25.  Nykaa is also expecting a GMV growth of 40 percent CAGR and a three-fold increase in its net sale  values in the next four years. The beauty and fashion brand aims to revolutionize the BPC sector by  offering a place to access authentic and finely created products and services. The startup provides  scientifically tested, high-quality, and expert-formulated products. The company faces competition  from other beauty and personal care brands including Purplle, Myntra, Mamaearth, jiomart, and more. 

Conclusion: 

D2C beauty and personal care startup, Nykaa plans to raise Rs 125 crore in its debt funding round from  FPI. The startup plans to raise this funding amount through its non-convertible debentures. The  company plans to use this fund to scale up operations and enhance its platform for a better user  experience. The company plans to use some of this investment to meet general corporate purposes  while aiming for market expansion in the BPC segment. The startup claims to provide wellness, beauty,  and personal care products through its website and mobile application. The development came just  when the beauty and personal care e-commerce sector had an increase in investor’s interest.