Nykaa IPO 2021: The Beauty E-Tailer Plans To Launch USD 3 billion IPO

Seeing that several tech-startups planning to make stock exchange debut this year, 2021 can easily become the year with the most number tech-startup IPOs. According to sources aware of the development, online beauty site, Nykaa could become one of the startup unicorns to list in the bourses. The cosmetic e-tailer is eyeing the IPO route by the end of 2021 or early 2022 and is currently working towards improving the company’s overall profitability. Nykaa is planning to make a maiden offer with a USD 3 billion IPO. 

Nykaa will join the list of several other e-commerce leaders like Flipkart, Grofers, Zomato, Ola, and Pepperfry preparing to join the market.

E-tailer portal, Nykaa founded eight years ago, is one of the first beauty marketplaces that has grown rapidly to become a leader in the domain. They have also ventured into physical storefronts with more than 68 stores in different metro cities. Nykaa founder, Falguni Nayar told the news sources in 2018 that the company would consider IPO by 2020. But the pandemic condition might have delayed their plan slightly. 

The recent IPO performance of few companies has boosted the confidence of the others. Despite four-month-long pause caused by the pandemic outbreak, several companies launched IPOs in 2020, among which more than five companies received overwhelming 150 times subscription.  Mrs Bectors was subscribed a record 198 times. It won’t be wrong to assume that if the same buoyancy continues in the market, several other companies will apply for listing. 

Nykaa IPO Details

The issuer is yet to comment on the details regarding final offer size and IPO dates, but Nykaa IPO isn’t a distant dream. The lockdown has provided the required tailwind to the e-commerce sector, which registered a significant rise in revenue and customer base. Beauty platform like Nykaa has a lot of headroom to grow in the personal care and beauty products segment. They have successfully closed the supply gap by establishing an omnichannel supply line and a wide range of product portfolio.     

Nykaa raised an undisclosed amount from Boston-based asset-management fund in November to facilitated an early exit to initial investors and employees. In 2019, the company’s valuation crossed billion dollars mark after it received Rs 166 crores capital infusion from Steadview Capital, which pegged its market value to USD 1.2 billion. After the Fidelity deal in November, the company reported clocking a revenue of Rs 1,860 crores for a year to March and expected to register 40 percent growth in consolidated revenue.  

Nykaa IPO will certainly remain one of the highlights of the market in 2021. The online beauty marketplace has seen a significant rise in demand and revenue during the pandemic, and it has contributed to Nykaa’s growth. Seeing there is a digital boom prompted by the pandemic, Nykaa IPO should stand in good stead.   

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