Omnichannel beauty platform Nykaa has strengthened its position in the clean beauty sector by acquiring a majority stake in the homegrown brand Earth Rhythm. This strategic move follows Nykaa’s initial investment in Earth Rhythm, where it secured a minority stake in 2022. The acquisition, involving both primary and secondary transactions, now sees Nykaa owning a significant majority stake in the brand.
The acquisition is part of Nykaa’s ongoing strategy to diversify and expand its portfolio of clean and organic beauty products. With Earth Rhythm’s expertise and Nykaa’s expansive ecosystem, the company aims to accelerate the growth of the brand across various beauty categories. Nykaa plans to leverage its marketing, distribution channels, and omnichannel platform to enhance Earth Rhythm’s potential while staying true to its core values of sustainability, innovation, and clean beauty.
Founded in 2019 by Harini Sivakumar, Sivakumar Varadarajan, and Arun Kumar, Earth Rhythm has quickly emerged as a key player in the clean beauty space. The internet-first brand offers a wide range of skincare, haircare, makeup, and lip care products. Known for its vegan, cruelty-free, and biodegradable formulations, Earth Rhythm distinguishes itself by excluding artificial fragrances from its products. Its portfolio includes popular items like face masks, toners, shampoos, conditioners, lipsticks, and lip balms.
Earth Rhythm, which is headquartered in Gurugram, has made significant strides in a short period. The brand raised $9.13 million from investors like Anicut Capital and has successfully built a loyal customer base by offering clinically effective beauty solutions. With a catalog of over 250 SKUs across six categories, Earth Rhythm has seen strong sales growth, category expansion, and growing brand awareness.
As Nykaa continues to expand its footprint in the beauty and wellness industry, the acquisition of Earth Rhythm allows the platform to further solidify its commitment to offering clean and sustainable beauty products. Nykaa, which already offers a variety of private label brands like Dot & Key, Pipa Bella, Gajra Gang, and Kica, plans to support Earth Rhythm’s continued innovation and market presence.
This acquisition marks a significant step for Nykaa as it faces increasing competition from giants like Amazon, Flipkart, and Myntra, as well as niche platforms like Purplle in the online beauty and fashion space. With Earth Rhythm now under its wing, Nykaa is poised to enhance its position in the growing clean beauty market.
