Indian beauty startup Nykaa to raise US$500 million through IPO
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Indian e-commerce beauty company Nykaa plans to raise US$500 million through its initial public offering (IPO), a source with direct knowledge of the matter told Reuters, becoming the latest homegrown startup to pursue a listing on the domestic bourses.
Private equity firm TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products, and clothes. Nykaa said its IPO will consist of a fresh issue of shares of up to 5.25 billion rupees (S$95.49 million) and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus dated Monday.
The source said the 5.25 billion rupees will come from fresh shares issued to investors, while the rest will come from existing shareholders.
Nykaa’s filing comes after food-delivery firm Zomato’s stellar debut last month. Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website and apps, before expanding into fashion, pet care, and household supplies.
Questions & Answers
Q.What is the total amount Nykaa aims to raise through its initial public offering?
What is the total amount Nykaa aims to raise through its initial public offering?
Nykaa plans to raise US$500 million through its initial public offering. This move makes them the newest homegrown startup to seek a listing on the domestic stock exchanges.
Q.How will the funds from the IPO be sourced, according to the draft prospectus?
How will the funds from the IPO be sourced, according to the draft prospectus?
The IPO will comprise a fresh issue of shares worth up to 5.25 billion rupees, with the remaining funds coming from existing shareholders. This information is detailed in their draft red herring prospectus.
Q.What product categories does Nykaa currently sell, beyond its initial offerings?
What product categories does Nykaa currently sell, beyond its initial offerings?
Nykaa initially gained popularity selling cosmetics and grooming products on its platforms. It has since expanded its offerings to include fashion, pet care, and household supplies for customers.
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