Nykaa, a leading beauty and fashion e-commerce platform, has announced the acquisition of a majority stake in Earth Rhythm, a direct-to-consumer (D2C) skincare and beauty brand.
Nykaa acquires 18.6% stake in Earth Rhythm in 2022
The financial terms of the deal were not disclosed. Nykaa had previously acquired an 18.6% stake in Earth Rhythm in 2022.
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With this acquisition, Nykaa aims to leverage its innovation, marketing, and omnichannel distribution capabilities to fuel Earth Rhythm’s growth across segments. The investment aligns with Nykaa’s strategy to build a house of brands portfolio, which includes Kay Beauty, Nykaa Naturals, Nykaa Cosmetics, and Wanderlust.
“Earth Rhythm’s truly unique formulations and commitment to sustainability across the supply chain – from ingredients to packaging to processes – have struck a chord with its loyal consumer base,” said Adwaita Nayar, Chief Executive of Nykaa Fashion and Beauty Brands. “We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem.”
Founded by Harini Sivakumar in 2019, Earth Rhythm offers a range of beauty and personal care products, including lip cheek tint, shampoo bars, sunsticks, and hydrating sunscreens. The brand focuses on plastic-free packaging and claims to offer 250 products across six categories.
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Nykaa operates 200 offline stores, expands B2B segment
For now, Nykaa operates over 200 offline stores and has been actively expanding its brand portfolio. The company has expanded its offerings to include lifestyle and B2B segments through online platforms Nykaa Fashion, Nykaa Man, and Superstore.
Earlier in September, Nykaa increased its ownership in Dot & Key to 90% from 51% by investing INR 265.3 crore. Meanwhile, the company’s total net profit rose by 66.3%, reaching INR 12.97 crore in the second quarter of FY25, up from INR 7.8 crore in the same period last year, due to strong growth in their beauty and personal care segment.
However, this profit was 4.9% lower than the INR 13.64 crore they reported in the previous June quarter.
