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Nykaa Investment | Nykaa reveals strategic investments in clean beauty, athleisure and more

Nykaa Investment | Nykaa reveals strategic investments in clean beauty, athleisure and more

Mumbai: Omnichannel beauty retailer Nykaa has made strategic investments in brands across categories such as clean beauty, athleisure and neutri-cosmetics.

The listed entity said it had acquired 18.51{adb1ce361e4d115852a5ecc77da1fcd21e68b5d23904b1abbfd33825d7fe0fb5} of Earth Rhythm, a clean beauty and personal care cosmetics brand, for Rs 41.65 crore. It further said it had taken a 60{adb1ce361e4d115852a5ecc77da1fcd21e68b5d23904b1abbfd33825d7fe0fb5} stake in Nudge Wellness, a dietary supplement and nutricosmetics products maker, for Rs 3.6 crore.

The beauty e-tailer also said it had acquired Kica, an activewear athleisure brand, for Rs 4.51 crore. Kica will be housed under its fashion vertical Nykd, the company said in regulatory filings.

“In the last few years, consumer brands have taken centre-stage and we are committed to serving our customers across the spectrum,” said Falguni Nayar, founder and chief executive, Nykaa.

Earth Rhythm, formerly known as Soapworks India, was launched in 2015 by Harini Sivakumar. “We are looking at developing more brands and products along with Nykaa,” Sivakumar said. The transaction is part of the company’s Series A funding round, which also saw participation from Anicut Capital.

Nykaa will partner with D2C brand incubator Onesto Labs to create a new category of nutraceuticals and wellness products under Nudge Wellness Private Ltd. Onesto Labs was founded by Rohit Chawla, Sifat Khurana and Vimal Bhola in 2018, and owns brands such as Chemist at Play, Bare Anatomy, and SunScoop SPF.

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“This partnership with Onesto Labs is one of its kind because we are now entering the ‘edible beauty’ category as we reimagine what clean and green beauty and wellness could look like in the coming years,” said Anchit Nayar, CEO, ecommerce beauty, Nykaa.

The partnership is one among a slew of Nykaa’s recent partnerships with homegrown D2C brands and is aimed at bolstering the early-stage beauty and lifestyle ecosystem and building the next generation of brands specialising in sustainable and inclusive products, the company said.

“There has been a visible and conscious shift in consumer mindsets, with wellness taking centre stage, especially post-pandemic, towards health solutions that offer long-term payoffs. The combined advantages of Nykaa’s experience in creating meaningful brands and our passion for science-forward beauty solutions will translate into Nudge Wellness,” said Rohit Chawla, founder, Onesto Labs.

Nykaa Fashion, the firm’s fashion vertical, has acquired Kica, which was founded by Aneesha Labroo in 2017.

Kica offers active-wear and athleisure apparel.

“With a strong vision to empower women to lead an active lifestyle, Kica is a brand that brings equal passion to product and community both,” said Adwaita Nayar, cofounder of Nykaa and CEO of Nykaa Fashion.

Kica, along with other consumer brands such as Nykd, Pipa Bella, Twenty Dresses, RSVP, Gajra Gang, IYKYK, and Likha, is now housed under Nykaa Fashion.

“Kica has found strong synergies with Nykaa Fashion’s positioning within the ecommerce landscape and its engagement with a wide network of customers around the country,” Labroo said.

Nykaa listed on the Indian bourses in November.

The stock closed 0.5{adb1ce361e4d115852a5ecc77da1fcd21e68b5d23904b1abbfd33825d7fe0fb5} higher at Rs 1,830.25 apiece on the BSE Friday, hitting a market capitalisation of Rs 86,773 crore.

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