FSN E-Commerce Ventures Ltd, which owns and runs online beauty and cosmetics platform Nykaa, has bought a 100 percent stake in an all-cash deal in Chiratae Ventures-backed digital content platform Little Black Book.
The amount of acquisition will be done at a mutually agreed pre-money valuation, Nykaa said in the filing. According to data by Tracxn Technologies, Little Black Book or lluminar Media Pvt Ltd, was valued at $17.1 million as of January 2021, when it last raised a $890,000 round from Inventus Capital and Chiratae Ventures.
ALSO READ: Nykaa reports higher Q1 profit at Rs 5 crore, revenue jumps 41% to Rs 1,148 crore
Little Black Book's acquisition will enable Nykaa to strengthen its content delivery and drive discovery for brands, the company said in the filing. Nykaa said that the transaction is expected to be completed within 60 days of execution.
Little Black Book, founded in 2015 by Suchita Salwan and Dhruv Mathur, is a lifestyle discovery platform for urban millennials to discover and shop unique brands and businesses. The company had a revenue of Rs 19.44 crore for the financial year ended March 2021.
Nykaa's acquisition of a digital content company rings a bell with Mamaearth's acquisition of Momspresso and The Good Glamm Group's acquisition of ScoopWhoop and Miss Malini. Increasingly, product and commerce companies are acquiring content companies for better visibility of their brands.
In a recent interaction with Moneycontrol, Nykaa Beauty CEO Anchit Nayar had said that rising inflation has not affected the company much as it caters to premium customers.
“We haven't seen any meaningful impact of inflation on our numbers yet as a retailer. Maybe, it's because we are slightly on the more premium end and our consumers are slightly less affected than those on the lower end of the funnel,” Nayar told Moneycontrol.
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