Nykaa, a leading player in beauty and e-commerce, has completed the acquisition of an additional 39% stake in Kolkata-based skincare brand Dot & Key for INR 265.3 crore.
Stake͏͏ Increase͏͏ to͏͏ 90%:
Following͏͏ the͏͏ latest͏͏ transaction,͏͏ Nykaa’s͏͏ stake͏͏ in͏͏ Dot͏͏ &͏͏ Key͏͏ has͏͏ risen͏͏ to͏͏ 90%,͏͏ up͏͏ from͏͏ 51%͏͏ previously,͏͏ as͏͏ stated͏͏ in͏͏ an͏͏ exchange͏͏ filing͏͏ on͏͏ Saturday͏͏ (September͏͏ 21).
Last͏͏ month,͏͏ Nykaa͏͏ announced͏͏ its͏͏ plan͏͏ to͏͏ acquire͏͏ 5.29͏͏ lakh͏͏ equity͏͏ shares͏͏ of͏͏ Dot͏͏ &͏͏ Key͏͏ from͏͏ promoters͏͏ and͏͏ existing͏͏ shareholders.
Continue͏͏ Exploring:͏͏ Nykaa to͏͏ increase͏͏ stake͏͏ in͏͏ Dot & Key and͏͏ Earth͏͏ Rhythm͏͏ with͏͏ INR͏͏ 309.8͏͏ Cr͏͏ investment
Importantly,͏͏ Dot͏͏ &͏͏ Key͏͏ is͏͏ Nykaa’s͏͏ first͏͏ acquisition͏͏ of͏͏ a͏͏ direct-to-consumer͏͏ (D2C)͏͏ brand,͏͏ having͏͏ initially͏͏ acquired͏͏ a͏͏ 51%͏͏ stake͏͏ in͏͏ 2021.
Founded͏͏ in͏͏ 2018,͏͏ Dot͏͏ &͏͏ Key͏͏ offers͏͏ unique͏͏ skincare͏͏ solutions.͏͏ Nykaa͏͏ has͏͏ previously͏͏ indicated͏͏ that͏͏ the͏͏ brand͏͏ has͏͏ been͏͏ profitable͏͏ since͏͏ the͏͏ fourth͏͏ quarter͏͏ of͏͏ the͏͏ 2022-23͏͏ financial͏͏ year.͏͏ In͏͏ FY24,͏͏ Dot͏͏ &͏͏ Key’s͏͏ revenue͏͏ soared͏͏ by͏͏ 244%,͏͏ reaching͏͏ INR͏͏ 198.3͏͏ crore,͏͏ up͏͏ from͏͏ INR͏͏ 57.7͏͏ crore͏͏ the͏͏ previous͏͏ year.
Nykaa’s͏͏ Continued͏͏ Investment͏͏ Strategy:
In͏͏ its͏͏ Q1͏͏ FY25͏͏ earnings͏͏ statement,͏͏ Nykaa͏͏ founder͏͏ and͏͏ chairman͏͏ Falguni͏͏ Nayar͏͏ remarked,͏͏ “This͏͏ has͏͏ been͏͏ a͏͏ fantastic͏͏ investment͏͏ for͏͏ Nykaa,͏͏ which͏͏ is͏͏ why͏͏ we’ve͏͏ decided͏͏ to͏͏ acquire͏͏ an͏͏ additional͏͏ 39%͏͏ stake.͏͏ What͏͏ we͏͏ appreciate͏͏ about͏͏ Dot͏͏ &͏͏ Key͏͏ is͏͏ its͏͏ differentiated͏͏ product͏͏ range,͏͏ along͏͏ with͏͏ its͏͏ innovative͏͏ and͏͏ patented͏͏ packaging͏͏ that͏͏ stands͏͏ out͏͏ in͏͏ the͏͏ market.”
Additional͏͏ Stake͏͏ in͏͏ Earth͏͏ Rhythm:
In͏͏ addition͏͏ to͏͏ Dot͏͏ &͏͏ Key,͏͏ Nykaa͏͏ has͏͏ also͏͏ announced͏͏ plans͏͏ to͏͏ acquire͏͏ an͏͏ additional͏͏ stake͏͏ in͏͏ beauty͏͏ brand͏͏ Earth͏͏ Rhythm͏͏ for͏͏ INR͏͏ 44.5͏͏ crore,͏͏ with͏͏ the͏͏ deal͏͏ expected͏͏ to͏͏ be͏͏ finalized͏͏ by͏͏ September͏͏ 2025.
Established͏͏ in͏͏ 2019,͏͏ Earth͏͏ Rhythm͏͏ is͏͏ a͏͏ direct-to-consumer͏͏ (D2C)͏͏ skincare͏͏ and͏͏ beauty͏͏ brand͏͏ offering͏͏ over͏͏ 250͏͏ SKUs.͏͏ Its͏͏ revenue͏͏ increased͏͏ by͏͏ 20.3%͏͏ to͏͏ INR͏͏ 30.7͏͏ crore͏͏ in͏͏ FY24,͏͏ up͏͏ from͏͏ INR͏͏ 24.5͏͏ crore͏͏ in͏͏ FY23.
It’s͏͏ important͏͏ to͏͏ note͏͏ that͏͏ Nykaa͏͏ acquired͏͏ an͏͏ 18.6%͏͏ stake͏͏ in͏͏ Earth͏͏ Rhythm͏͏ in͏͏ 2022.
These͏͏ acquisitions͏͏ are͏͏ part͏͏ of͏͏ Nykaa’s͏͏ broader͏͏ strategy͏͏ to͏͏ enhance͏͏ its͏͏ presence͏͏ in͏͏ India’s͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ sector—a͏͏ rapidly͏͏ growing͏͏ market͏͏ projected͏͏ to͏͏ reach͏͏ $28͏͏ billion͏͏ by͏͏ 2030,͏͏ representing͏͏ 7%͏͏ of͏͏ the͏͏ e-commerce͏͏ market.
To͏͏ boost͏͏ its͏͏ revenue͏͏ and͏͏ attract͏͏ more͏͏ customers,͏͏ Nykaa͏͏ has͏͏ expanded͏͏ its͏͏ same-day͏͏ and͏͏ next-day͏͏ delivery͏͏ services.͏͏ During͏͏ the͏͏ company’s͏͏ 12th͏͏ annual͏͏ general͏͏ meeting,͏͏ CEO͏͏ Nayar͏͏ announced͏͏ that͏͏ Nykaa͏͏ is͏͏ now͏͏ delivering͏͏ 60%͏͏ of͏͏ its͏͏ orders͏͏ the͏͏ following͏͏ day͏͏ in͏͏ the͏͏ top͏͏ 110͏͏ cities,͏͏ which͏͏ represent͏͏ two-thirds͏͏ of͏͏ the͏͏ company’s͏͏ total͏͏ order͏͏ volumes.
Continue͏͏ Exploring:͏͏ Nykaa’s͏͏ Q1͏͏ FY25͏͏ net͏͏ profit͏͏ soars͏͏ 152%͏͏ to͏͏ INR͏͏ 13.6͏͏ Cr;͏͏ revenue͏͏ up͏͏ 22.8%
Expansion͏͏ into͏͏ the͏͏ Middle͏͏ East͏͏ Market:
The͏͏ e-commerce͏͏ giant͏͏ has͏͏ been͏͏ ramping͏͏ up͏͏ its͏͏ efforts͏͏ to͏͏ expand͏͏ its͏͏ presence͏͏ in͏͏ the͏͏ Middle͏͏ East.͏͏ Nykaa͏͏ has͏͏ established͏͏ two͏͏ new͏͏ subsidiaries͏͏ in͏͏ Qatar͏͏ and͏͏ Saudi͏͏ Arabia͏͏ under͏͏ the͏͏ brand͏͏ name͏͏ Nysaa,͏͏ aiming͏͏ to͏͏ capitalise͏͏ on͏͏ market͏͏ opportunities͏͏ in͏͏ the͏͏ Gulf͏͏ Cooperation͏͏ Council͏͏ (GCC)͏͏ region.
The͏͏ GCC͏͏ boasts͏͏ an͏͏ impressive͏͏ per͏͏ capita͏͏ spending͏͏ of͏͏ $500͏͏ per͏͏ year͏͏ on͏͏ beauty͏͏ and͏͏ personal͏͏ care͏͏ products,͏͏ making͏͏ it͏͏ one͏͏ of͏͏ the͏͏ highest͏͏ in͏͏ the͏͏ world.
