Fidelity invests in Nykaa via secondary shares
Nykaa, which recorded a revenue of Rs 1,860 crore for the year ending March 2020 with EBIDTA of Rs 94 crore, was valued at $1.2 billion this year when it raised about $20 million from hedge fund Steadview Capital
November 26, 2020 / 04:30 PM IST
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US-based financial services giant Fidelity Management and Research LLC has invested in beauty and makeup retailer Nykaa by acquiring shares from its early investors, Nykaa said on November 26.
Nykaa was valued at $1.2 billion this year when it raised about $20 million from hedge fund Steadview Capital. Secondary rounds, where new investors acquire shares from existing investors, generally happen at a slightly lower valuation than primary rounds, where capital goes into the company.
Nykaa did not comment on the size of this round or the secondary valuation.
One of India’s few profitable internet companies, Nykaa recorded a revenue of Rs 1,860 crore for the year ending March 2020 with EBIDTA of Rs 94 crore. Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a measure of operating profits.
Nykaa Founder and CEO Falguni Nayar said, “We are very excited to have Fidelity, one of the largest asset managers in the world, to join as partner in our growth journey. Their investment in a private company in India is testament to the strength of our brand and business model. Nykaa’s focus on business sustainability and corporate governance further supports such strong investor confidence.”