Lighthouse India Fund buys out TVS Shriram Growth Fund stake in Nykaa for Rs 113 crore.

Lighthouse India Fund III has bought out stake held by TVS Shriram Growth Fund in Nykaa by investing Rs 113 crore. TVS Shriram was part of the Series B and Series C fund-raise by the Indian beauty retailer back in 2015 and 2016. Founded by Falguni Nayar, Nykaa had earlier this year raised Rs 160 crore through a combination of primary and secondary transactions with participation from existing investors.

An affiliate of Lighthouse Advisors, a leading consumer-focused private equity manager, Lighthouse India Fund III is now a shareholder in Nykaa. According to Sean Sovak, co-founder of Lighthouse, “What Falguni and team have created is nothing short of brilliant, completely disrupting the personal care market in India, by focusing on ease of access and superior customer experience. We are excited by the opportunity ahead for the company.”

Nykaa achieved revenues of Rs 570 crore in the financial year (FY) 2018 and has been Ebitda (earnings before interest, tax, depreciation and amortisation) positive for two quarters in a row. The retailer is on a path to 100% revenue growth in the current financial year.

Its current portfolio comprises over 1,000 brands across makeup, skincare, haircare and wellness offering a one-stop, personalised product availability and solutions to consumers across India. The company has chalked out a new phase of growth wherein it will look to expand the portfolio with the launch of exclusive brand partnerships and increase its offline footprint to 90 stores across India by 2020.

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Falguni Nayar, founder and CEO, Nykaa.com, said, Lighthouse joins the shareholder base as the company launches into the next phase of growth. “We believe they will bring to bear their expertise in the retail sector, propelling Nykaa to even greater heights. Over the past six years, our customers have come to trust brand Nykaa with our focus on bringing the best products, content and shopping convenience together. We will continue to build on meaningful experiences that engage our customers.”