Beauty and life omni- channel company Nykaa said on Friday it has acquired skincare brand Fleck & Key for an undisclosed sum. This is the first direct-to-consumer (D2C) beauty brand acquired by Nykaa, following which Fleck & Key will join Nykaa’s troop of possessed brands.
Operated by Fleck & Key Wellness Pvt Ltd, the brand was innovated by Suyash Saraf and Anisha Saraf, and offers ultraexpensive skincare products similar as serums, face masks, colors, and cleaners. The brand has lately expanded into nutraceuticals under the brand‘IKWI’, whose products the company claims to be are dermatologically tested and atrocity-free. CEO Falguni Nayar said Fleck & Key will allow Nykaa to extend the brand’s reach to a larger geography of consumers and enter the nutraceutical space as well.
Nykaa has been expanding its fashion business with a couple of accessions over the once two times. In 2019, it acquired women baptizing platform20Dresses.com. In April, Nykaa acquired jewellery etailer Pipa Bella, a brand that targets 22-35-year-old civic women. Pipa Bella had secured backing from early- stage adventure capital establishment Fireside Gambles in 2018 and preliminarily in 2015, it had secured$ in apre-Series A round led by LionRock Capital.
The accession also comes at a time when Nykaa is gearing up towards its original public immolation (IPO). Nykaa which is operated by FSNE-Commerce Gambles Ltd will open its IPO subscription on 28 October and close on 1 November. The establishment plans to raise as much as Rs crore and anchor placement will open on 27 October for Rs crore, two persons familiar with the deal said on condition of obscurity.
Nykaa will be allocating Rs 35 crore from the issue to invest in its arms FSN Brands and Nykaa Fashions for funding the setup of new retail stores. Another Rs 35 crore and Rs 130 crore will be used for capital expenditure and prepayment of debt. Presently, Falguni Nayar Family Trust and Sanjay Nayar Family Trust hold22.33 and25.72 stake, independently, in the establishment. The company will also use Rs 200 crore for expenditure to enhance the visibility and mindfulness of its brands.
Nykaa was set up in 2012 by investment banker- turned-entrepreneur Falguni Nayar, who was a managing director at Kotak Mahindra Capital. Its online business sells products for both women and men in orders including skincare, haircare, spices, bath and body, and luxury products. The company has come an omnichannel life retailer with over 17 million yearly active druggies, over 70 stores across India, and fulfilling over1.5 million orders a month. It offers brands and over3.1 million product stock- keeping units (SKUs) through its website and mobile operations as of August 31, 2021.