Nykaa Acquires Majority Stake in Clean Beauty Brand Earth Rhythm

Nykaa is a prominent e-commerce platform in India that focuses on beauty, wellness, and fashion products. Established in 2012 by Falguni Nayar, the company has expanded substantially and is now one of the most well-known and trusted beauty retailers in the country.

Nykaa acquired a majority stake in Earth Rhythm

On November 27, Nykaa announced that it had acquired a majority stake in Earth Rhythm, a homegrown brand specializing in clean beauty and personal care products. Nykaa had previously purchased a minority stake in the company in 2022 through various primary and secondary transactions.

In a statement, Nykaa mentioned that this acquisition will enable Earth Rhythm to tap into greater growth potential across different categories. The company plans to utilize its strengths in innovation, marketing, and omnichannel distribution while ensuring that the brand’s core values and unique identity are maintained.

Adwaita Nayar, co-founder of Nykaa and CEO, Stated

“Earth Rhythm is an exciting new addition to our owned brands portfolio, providing a chance to deepen our presence in the clean beauty sector, which holds significant long-term promise,” stated Adwaita Nayar, co-founder and CEO of Nykaa Fashion and Beauty Brands.

“We are eager to enhance the brand’s reach and accessibility while accelerating growth by utilizing operational synergies within the Nykaa ecosystem,” Nayar continued.

All About Earth Rhythm

Established in 2019, Earth Rhythm provides a variety of beauty and personal care items that are certified organic, plant-based, and 99% plastic-free. Some of its top-selling products feature Lip and Cheek Tint, Shampoo Bars, Sunsticks, and Hydrating Sunscreens. The brand boasts over 250 stock-keeping units (SKUs) across six different categories.

Nykaa Q2 FY25 Results

Nykaa has recently announced a 67% increase in net profit year-on-year (Y-o-Y), reaching Rs 13 crore for the second quarter that ended on September 30, compared to Rs 7.8 crore during the same period last year. However, there was a 4% decline in profits from Rs 13.6 crore in the previous quarter, as stated in regulatory filings.

The company’s consolidated revenue from operations rose by 24% Y-o-Y to Rs 1,875 crore, up from Rs 1,507 crore a year ago and Rs 1,746 crore in Q1 FY25. Additionally, Nykaa’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 29% Y-o-Y to Rs 103.7 crore in Q2 FY25.

Fsn E-Commerce Ventures Ltd. (Nykaa) Stock is 3% up Today

Fsn E-Commerce Ventures Ltd (Nykaa) stock is trading at Rs. 174.11 per share, which is almost 3% up intraday and high traded at Rs. 176 and this is due to the recent majority stake in Earth Rhythm.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.