With an aim to become profitable by FY19, online beauty retailer Nykaa has raised Rs 75 crore (above $11 million) in its latest round of funding, valuing the six-year-old company at Rs 3,000 crore, reports ET. The fund-raise was part of a Rs 170 crore investment round, which was a mix of primary and secondary transactions that brought in about Rs 95 crore to some existing shareholders.
The round was led by existing investors including Sunil Munjal’s family office, consumer goods maker Marico’s Mariwala family office and Dalip Pathak, special limited partner at private equity firm Warburg Pincus, along with other existing and new high net worth individuals.
This is the fourth round of fund-raising by Nykaa, which last raised about Rs 100 crore in 2016 from Max Ventures and Industries, the Sunil Munjal family office and Harsh Mariwala. With this, the company has raised a total funding of about Rs 255 crore.
Nykaa, launched in July 2012, will use the latest funding to enhance retail distribution so as to boost its private label, which currently forms less than 10% of the revenue pie. The company plans to expand its offline presence from 17 stores currently to about 55 stores by FY19-end.
With this funding, at least three investors in the company are said to have sold part of their stakes in this round, including TVS Capital Funds, which invested in Nykaa in 2015.