Online fashion and beauty commerce platform Nykaa is set to raise Rs 125 crore (approximately $15 million) through non-convertible debentures (NCDs).
Nykaa’s board has approved a resolution to issue up to 12,500 NCDs at an issue price of Rs 1,00,000 each, raising Rs 125 crore in dematerialized form via private placement, according to a disclosure filed with the National Stock Exchange. The debentures will be issued to a foreign portfolio investor, although the investor’s name has not been disclosed.
While Nykaa has not specified the purpose of this debt raising, it plans to invest $2.5 million in its UAE-based subsidiary Nysaa Beauty in one or more tranches. Nykaa currently operates 14 subsidiaries and has an associate company named Earth Rhythm.
Nykaa generates the majority of its revenue from the sale of beauty, personal care, fashion, and other products and services through various platforms. The company’s revenue from operations grew by 24.1% to Rs 6,386 crore in FY24 from Rs 5,144 crore in FY23. Additionally, Nykaa’s profit surged by 90.5% to Rs 40 crore in FY24 from Rs 21 crore in the previous fiscal year.
Nykaa has projected a growth rate of 22-23% for the first quarter of FY25. Ahead of its Q4 results, the company also announced new employee stock option (ESOP) plans to promote employee ownership and attract, retain, and motivate talent in line with its corporate growth.
