Seasoned investment banker-turned-entrepreneur Falguni Nayar became India’s richest self-taught woman after the meteoric debut of FSN E-Commerce Ventures, the parent company of fashion and cosmetics retailer Nykaa, on Wednesday. The listing price of 2,018 rupees, which is a whopping 79% premium over the issue price of 1,125 rupees, gives the company a valuation of $ 13 billion. Nayar’s 52.6% stake held with her husband Sanjay Nayar, who heads the Indian unit of US private equity firm KKR, and their twins is $ 6.8 billion.
Nayar, 58, founder, managing director and CEO of Nykaa, was dressed in a resplendent red saree during today’s listing ceremony on the Mumbai National Stock Exchange. She became a billionaire in a pre-IPO private placement in June that valued Nykaa at $ 2.3 billion, giving her a net worth of $ 1.1 billion. The increase in the list made her the richest self-taught woman in India, a title so far held by biotech entrepreneur Kiran Mazumdar Shaw with a current net worth of $ 3.6 billion. .
Nykaa’s IPO, which opened on October 28 and closed on November 1, was 82 times oversubscribed, the part reserved for qualified institutional buyers having been subscribed 92.3 times; 110 times non-institutional investors; the share of shops at 10.3 times and the employee segment at nearly 1.9 times. The Mumbai-based company had set a price range of between Rs 1,085 and Rs 1,125 per share.
The multi-brand cosmetics and clothing retailer has issued a new issue of 5.6 million shares in addition to the shares sold by a series of early stage investors. These include Hong Kong commodities billionaire Harry Banga; Rishab Mariwala, son of Indian consumer goods billionaire Harsh Mariwala and Sunil Kant Munjal, brother of automotive billionaire Pawan Munjal. The proceeds will be used to add new stores and warehouses and to improve brand visibility.
“The listing of Nykaa on the Indian stock exchanges today was a historic milestone and what makes it so impressive is that it is only just getting started,” says Angad Banga, son of Harry Banga, whose family office Hong Kong-based was an early investor and continues to hold a minority stake in Nykaa. “The unprecedented level of investor interest that we have seen is a true reflection of the passion and determination of the founder, the highly skilled and efficient management team that runs the company; and the great vision they have for the future.
Nykaa, which offers more than 4,000 brands on its beauty, personal care and fashion platforms, has 80 stores in 40 cities. But 97% of its gross merchandise value (GMV) comes from online sales with 63% contribution from Tier 2 and Tier 3 cities. About 70% of GMV comes from existing customers. He works with over 3,000 influencers, including Gen Z trend setters, lifestyle bloggers and celebrities.
Nykaa is a rare example of a startup that is already profitable. It has been Ebitda positive for the past three years and became profitable in fiscal 2021. Nykaa’s revenue increased to $ 334 million for the fiscal year ended March 2021, from $ 236 million. dollars for the previous year. The company reported net profit of $ 8 million in the same period compared to a net loss of $ 2 million in fiscal 2020.
For the three months ended June 30, 2021, Nykaa’s turnover was nearly 8.2 billion rupees ($ 110 million) with a net profit of 35.2 million rupees (474 000 dollars).
Nayar, who said in a 2019 interview with Forbes Asia, that she will only take her company public once it becomes profitable, has been true to her word.
Her entrepreneurial journey began in 2012 when she quit her job as an investment banker after spending 19 years at Kotak Mahindra Bank, founded by billionaire Uday Kotak. She had set up Kotak’s securities operations in the US and UK in addition to leading numerous IPOs in India.
In 2012, she invested $ 2 million to launch ‘Nykaa’, which is derived from the Sanskrit word ‘Nayaka’, which means one who is in the spotlight. Its aim was to provide Indian consumers with an array of international beauty brands, including Clinique and Bobbi Brown. She quickly spread to physical stores with the opening of the first in 2014. In 2015, she launched the in-house cosmetics brand Nykaa and started hosting the Nykaa Femina Beauty Awards. In 2016, she inaugurated the first luxury brand Estée Lauder.
Nayar runs Nykaa with her twins: Adwaita, co-founder and CEO of the fashion industry, and Anchit, CEO of the beauty and e-commerce industry. She also intends to take him abroad, first to the Middle East, then to Europe.