Investment and financial services firm Fidelity Management and Research has invested an undisclosed sum in India-based fashion and beauty marketplace Nykaa through a secondary transaction, the Economic Times has reported.
Nykaa runs a beauty e-commerce platform where consumers can purchase goods from more than 1,000 brands and receive tips on achieving an elegant look through magazine and video content.
The company said its foothold in Indian beauty products has grown due to larger online consumer spends during the covid-19 pandemic. The Fidelity deal allowed undisclosed early investors in the company – which may include conglomerates Max Group and TVS – to exit, according to ET.
The company has raised approximately $89m in primary funding, having received an undisclosed amount from Bollywood actress Katrina Kaif last month after securing $22.2m from hedge fund Steadview Capital over two tranches in April and May 2020 that reportedly valued it above $1.2bn.
Growth equity fund TPG Growth supplied $14m for Nykaa at a $724m valuation in March 2019, after Lighthouse India Fund III executed a $16m secondary purchase in September 2018 with existing investors including TVS Shriram Growth Fund selling shares.
TVS Shriram Growth Fund is managed by TVS Capital, a private equity subsidiary of diversified conglomerate TVS.
The transaction followed a $25.5m series D round for Nykaa co-led by private investor Dalip Pathak and the family offices of Sunil Munjal and Harsh Mariwala in April 2018, a deal comprising primary and secondary funding.
Nykaa’s existing investors include Max Group Ventures and Industries, a subsidiary of conglomerate Max Group, which backed a $15m round in 2016 together with TVS Capital.