FSN E-Commerce Ventures, the India-based, corporate-backed operator of fashion e-commerce platform Nykaa, floated yesterday having secured more than $721m in its initial public offering.
Nykaa’s shares rose 89% to Rs 2,129 ($28.67) each on the BSE while those listed on the National Stock Exchange (NSE) reached Rs 2,018 ($27.17) apiece in the opening, representing a 79% rise from the issue price. The listing helped lift the company to a market capitalisation of about $13.5bn.
Founded in 2012, Nykaa has built an online beauty, personal and pet care product marketplace that also offers its goods through more than 80 brick-and-mortar retail partners across India. It intends to use the IPO proceeds to increase its offline presence through new stores.
Investment and financial services firm Fidelity Management and Research paid an undisclosed amount for a stake in Nykaa through a secondary deal in November 2020.
The company had raised roughly $89m in total equity funding from investors including Max Group Ventures and Industries, a subsidiary of conglomerate Max Group, which took part in a $15m round in 2016 alongside conglomerate TVS’s private equity unit, TVS Capital.
Steadview Capital, TPG Growth, Lighthouse India Fund III, the family offices of Sunil Munjal and Harsh Mariwala, and individuals Dalip Pathak and Katrina Kaif are also among Nykaa’s shareholders.
