Nykaa raises stake in Dot & Key to 90% for Rs 265 crore

Beauty and fashion platform Nykaa's parent, FSN E-Commerce Ventures on Tuesday announced the acquisition of additional stake in beauty brand Dot & Key for Rs 265 crore. The additional stake takes its total shareholding in Dot & Key to 90 per cent from 51 per cent, FSN E-Commerce said in a press release post-market hours on Tuesday.

Dot & Key founders Suyash and Anisha Saraf will continue to manage and drive the business and will continue to have an ownership stake in the company, according to Nykaa. 

Nykaa's investment in Dot & Key is a testament to the strength and performance of the brand, its long-term potential as well as the key strategic role it plays in Nykaa’s growing owned brands portfolio. Dot & Key is a fruit-forward skincare brand focused on providing high quality skincare products that promise efficacy. The brand ensures all its products are clinically tested and certified safe, according to FSN E-Commerce Ventures.

Nykaa had made its initial investment in Dot & Key in 2021.

“We are thrilled to expand our partnership with Dot & Key. The Dot & Key success story is a testament to the collective strength of our partnership - driving excellence in unique formulations, constant innovation, energized marketing and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand - across people and processes," said Adwaita Nayar, Co-founder of Nykaa and CEO of Nykaa Fashion and Beauty Brands. 

FSN E-Commerce Ventures also announced the acquisition of additional stake in homegrown clean beauty brand Earth Rhythm through a combination of primary and secondary transactions.

After the transaction, Earth Rhythm will become a subsidiary of FSN ECommerce Ventures.

“Earth Rhythm represents an exciting addition to our owned brands portfolio, and it presents an opportunity to expand our play in the clean beauty space, a category with immense long-term potential... We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem," Nykaa's Nayar added. 

Nykaa had acquired a minority stake in the brand in 2022.

Founded in 2019, Earth Rhythm develops clean and clinically effective beauty and personal care products that are safe for both people and the planet, through responsible use of resources and plastic neutral practices, FSN E-Commerce Ventures said. 

Earlier on Tuesday, Nykaa shares ended 4.0 per cent lower at Rs 186.6 apiece on BSE amid an overall weak session on Dalal Street.

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