Online fashion and beauty commerce platform Nykaa is set to raise Rs 125 crore (approximately $15 million) through the issuance of non-convertible debentures (NCDs).
The Nykaa board has approved a resolution to issue up to 12,500 NCDs at an issue price of Rs 1,00,000 each, raising Rs 125 crore in a dematerialized form via private placement, according to a disclosure filed with the National Stock Exchange.
The debentures will be issued to a foreign portfolio investor, though Nykaa has not disclosed the investor’s identity. While the company has not specified the purpose of raising the debt, it plans to invest $2.5 million in its UAE-based subsidiary, Nysaa Beauty, in one or more tranches. Nykaa operates 14 subsidiaries and one associate company, Earth Rhythm.
Nykaa derives most of its revenue from selling beauty, personal care, fashion, and other products and services across various platforms. The company’s revenue from operations grew by 24.1% to Rs 6,386 crore in FY24, up from Rs 5,144 crore in FY23. Additionally, Nykaa reported a 90.5% increase in profit, reaching Rs 40 crore in FY24 compared to Rs 21 crore in the previous fiscal year.
Looking ahead, Nykaa projects a growth rate of 22-23% for the first quarter of FY25.
In preparation for its Q4 results, Nykaa announced a new round of employee stock options (ESOPs). This move aims to promote employee ownership and attract, retain, and motivate talent, aligning with the company’s growth objectives.
