Falguni Nayar, veteran investment banker-turned-entrepreneur, has become India’s new Billionaire ahead of her beauty retailer Nykaa’s IPO launch. In June, a pre-IPO private placement valued Nykaa at $2.3 billion that made Nayar’s net worth $1.1 billion and put her in the three-comma club.
The founder, managing director and CEO of the Mumbai-based online seller of cosmetics and apparel, Nayar, and her husband Sanjay Nayar, India CEO of US private equity giant KKR owns 54% shares in Nykaa. The company has recently turned profitable, attracting several investors because of the IPO.
At an estimated $4.5 billion or more, the listing would be a massive windfall for Nayar, propelling the worth of her initial $2 million investment further.
The nine-year-old company is looking to raise $71 million through a fresh issue of shares. Nykaa is also proposing to sell 43.11 million shares to existing shareholders. The IPO is expected to result in a massive payoff for Nykaa’s early investors like consumer goods billionaire Harsh Mariwala and Harindarpal Singh Banga, a Hong Kong-based commodities billionaire.
During the pandemic causing lockdowns, consumers binge-shopped online, ordering cosmetic products like lipsticks, mascaras, skin care creams, etc. This has generated Nykaa’s annual revenue of $334 million from $236 million. It has reported a net profit of $8 million in the fiscal year ended March 2021 versus a net loss of $2 million in fiscal 2020.
Nayar is looking to open new warehouses and stores through the IPO launch. She is also trying to deepen Nykaa’s presence on the ground as more Indians are relying on beauty products. Nykaa that created a niche by selling luxury beauty brands such as Estee Lauder, Clinique, Bobbi Brown, etc., has 73 stores across 38 cities in India and distributes around 1,350 brands to date. Another source of sales for this beauty product seller is its private-label range from fragrances to fashion apparel. However, the bulk of sales come from its website and apps.