Nykaa, a premier e-commerce leader in beauty and fashion, is advancing its investment footprint by capturing a larger share in Earth Rhythm, confirming an INR 44.5 Cr deal to transform it into a subsidiary. Concurrently, Nykaa is enhancing its influence over Dot & Key with a significant 90% ownership, backed by an INR 265.3 Cr investment.
Investment Moves
Nykaa originally gained an 18.6% share in Earth Rhythm in 2022. It now plans to acquire an additional 57,302 equity shares and 12,226 warrants. This acquisition is anticipated to complete by September 2025. Earth Rhythm, recognized as a direct-to-consumer (D2C) skincare brand, witnessed a revenue increase of 20.3% in FY24.
In parallel, Nykaa intends to secure an extra 39% in Dot & Key, raising its stake to 90%. Dot & Key, celebrated for its profitable skincare solutions, experienced a remarkable 244% revenue growth in FY24, thereby becoming a prominent asset for Nykaa.
Strategic Goals
These acquisitions are a testament to Nykaa’s belief in the promising potential of eco-friendly and unique beauty brands. These investments are an integral part of Nykaa’s strategic vision to reinforce its collection by acquiring greater stakes in high-performing, specialized brands, thus enhancing its authoritative stance in the market.