Nykaa is India`s first women led unicorn to hit the stock exchange. It priced its initial public offering at the top end of a marketed range, raising 53.5 billion rupees ($722 million). Nykaa`s market cap went past Rs 1 lakh crore after the stock started trading at nearly 80% premium to its issue price of Rs 1,125.
Founded in 2012, Nykaa has seen a steep rise in its customer base and has a huge fan following. Before Nykaa, most Indian women bought makeup, skinm and hair-care products at a normal drug and makeup stores where the selection was scanty. The startup has since grown to become the country’s leading beauty retailer, triggering online sales with demo videos by glamorous Bollywood act.
The new online product is targeted at the tech-savvy Indian women who are active on the net and mostly buy products online. How convenient it is to buy makeup now. The company also began selling clothes and household products in a bid to increase its portfolio for customers, called Nykaa Fashion.
Falguni Nayar, who is an ex-investment banker, says, “Nykaa was built to have a life in the stock markets. We knew we were building the business in the right and sustainable manner, and it would definitely have a long-term appeal. The IPO pricing took into account investors, analysts and banks and how they thought about the valuation”.