Nykaa is in advanced discussions to acquire a majority stake in 82°E, marking a potential strategic move to deepen its “House of Nykaa” portfolio. The brand, co-founded by Deepika Padukone in 2022, may see its founder retain a minority stake if the transaction is finalised, signaling a shift from founder-led operations to a partnership-driven scale model.
The talks come at a time when 82°E has struggled to achieve financial stability despite strong brand visibility. In FY25, the company reported a 30 percent decline in revenue to ₹14.7 crore, alongside a net loss of ₹12.26 crore. While losses have narrowed compared to the previous year, the brand continues to face challenges in reaching sustainable profitability. Industry observers attribute this to a combination of premium pricing, with products often positioned above ₹2,500, and a relatively unclear differentiation in an increasingly competitive skincare market dominated by agile, mass-premium players.
For Nykaa, the acquisition represents more than just adding a celebrity-backed label. It aligns with its broader strategy of building and scaling a portfolio of high-potential beauty brands through its integrated ecosystem. The company is expected to leverage its extensive distribution network, which includes over 300 physical stores and a large digital consumer base, to drive higher visibility and repeat purchases for 82°E. This is particularly critical as repeat consumption remains a key challenge for emerging D2C beauty brands.
Nykaa’s track record in scaling similar ventures strengthens the rationale behind the move. Its partnership with Kay Beauty, co-founded by Katrina Kaif, has demonstrated the ability to convert celebrity appeal into sustained commercial success. Additionally, its acquisition and scaling of brands like Dot & Key highlight its capability to drive rapid growth through distribution, marketing efficiency, and operational integration.
From a strategic lens, the potential deal reflects a broader consolidation trend within India’s beauty and personal care sector. Celebrity-led brands, which initially relied heavily on founder visibility and digital-first strategies, are increasingly aligning with larger platforms to unlock scale. While star power continues to drive initial consumer interest, long-term success is increasingly dependent on supply chain strength, omnichannel presence, and data-driven marketing—areas where established players like Nykaa have a clear advantage.
If completed, the transaction would further reinforce Nykaa’s positioning as a curator and scaler of premium beauty brands, while providing 82°E with the infrastructure needed to transition from a niche, founder-led label to a more mainstream, growth-oriented business. The outcome of these discussions will be closely watched as it could set a precedent for how other celebrity-founded D2C brands approach scale and sustainability in an evolving market landscape.
