Nykaa gets Rs 100-crore funding boost from Steadview Capital
The funding announcement came a few hours after the company suspended operations, citing the lockdown.
April 01, 2020 / 01:42 PM IST
Beauty and fashion retailer Nykaa has raised Rs 100 crore from existing investor Steadview Capital, a UK-based hedge fund, the company said early on April 1, hours after it suspended operations across the country.
The round values Nykaa at $1.2 billion (Rs 9,200 crore), nearly double the $750 million (Rs 5,000 crore) it was valued at last year when private equity firm TPG Growth invested Rs 100 crore.
Moneycontrol first reported on March 9 that Nykaa was targeting a valuation of $1.2 billion in a fundraise this year, and is the latest addition to India’s coveted list of unicorns, or firms valued at over a billion dollars.
Avendus Capital was the financial adviser to the deal.
Steadview’s fund push comes at a time when the Mumbai-based retailer has suspended operations amid a 21-day countrywide lockdown to check the spread of coronavirus even though infections continue to inch up.
On April 1, the eighth day of the lockdown, the number of confirmed cases stood at 1,397. Thirty-five people have died of COVID-19, the health ministry has said, referring to the respiratory disease caused by the virus.
A few hours earlier, Nykaa shut down its offline stores, corporate offices and warehouses. It would not be able to make payments to vendors and partners in time, the company said, citing disruptions in cash flow due to the lockdown.
“We deeply value the trust and support of our investors, customers and brand partners who have been instrumental to our success. In the midst of this unprecedented global crisis we are working to ensure all our stakeholders are well served and that Nykaa emerges as a leading retail player in the industry,” founder and CEO Falguni Nayar said in a statement.