Nykaa has begun discussions to raise $50-150 million, in a financing round that will value the fashion and beauty retailer at $2 billion.
Nykaa is seeking a valuation of $3.5 billion (Rs 25,000 crore) during its initial public offering (IPO) in 2022, The Economic Times reported.
Also read: The coming Indian internet IPO rush—what’s at stake, decoded
Moneycontrol could not independently verify the valuation.
Falguni Nayar, the founder of Nykaa, had not yet responded when contacted by The Economic Times.
Nykaa has been recording an annual revenue run rate of around $600 million, the report said. In March 2020, Nykaa had raised $1.2 billion in a funding round led by Steadview Capital, which valued the company at $1.2 billion (Rs 9,100 crore).
"The company wants to realign its cap-table before the IPO, hence some of the early backers may exit making way for newer investors," a source told the paper.
Nykaa is likely to pick Kotak Mahindra Capital, JP Morgan, Citi, and IIFL as investment bankers to assist with the proposed listing.
Zomato, Delhivery, and Policybazaar are some other internet startups that are planning on listing on exchanges.
