Nykaa announced on April 22 that it has acquired 18.51% stake in clean beauty brand Earth Rhythm for Rs 41.65 crore. The transaction is expected to be completed by May 31, 2022 subject to the completion of CPs under the agreement.
The company established by Falguni Nayar in 2012 said in a BSE filing: “Entering into a share subscription agreement, share purchase agreement and shareholders' agreement by the company to acquire by way of subscription and/or purchase of compulsory convertible cumulative preference shares and/or equity shares, up to 18.51% of the fully diluted share capital of Earth Rhythm Private Limited.”
Speaking about the acquisition, Anchit Nayar, CEO, E-commerce Beauty, Nykaa said, “For Nykaa, brands that originate within the ethos of transparency and constant innovation towards efficacy and sustainability hold great value. Harini's tenacious story of why she founded Earth Rhythm reflects her focus on creating a wide range of beauty products that the discerning Indian consumer is looking for. We are proud to partner with a promising early-stage start-up and help them to achieve their potential by leveraging Nykaa's expertise and ecosystem.”
Harini Sivakumar, Founder and CEO Earth Rhythm said: “We are thrilled to have Nykaa as an investor in Earth Rhythm. Their investment is a clear endorsement of our efforts to build a clinically effective and technology-driven skincare and haircare brand. Through this investment, our commitment to our customers and the planet is only going to get stronger.”
Nykaa has also acquired a 60 percent stake in Delhi-based Nudge Wellness for Rs 3.6 crore, thus making a foray into dietary supplements and nutricosmetic products.
Currently, 72 Ventures LLP, a promoter group entity, holds 11.55 percent in Onesto Labs Private Limited. Onesto holds 100 percent of Nudge, but will hold a 40 percent stake in the company once the transaction closes on June 30, 2022.
Further, Nykaa also acquired athleisure brand 'KICA' for Rs 4.51 crore. The transaction is expected to be completed by June 30, 2022.This "transaction will be in the direction of Nykaa Fashion Private Limited's mission to strengthen its active-wear play providing greater variety and curation for the growing active-wear community of athletes and everyday fitness seekers. This transaction will also augment current offerings under the Company's brand ‘Nykd’".