Nykaa, a leading Indian e-commerce platform for beauty and lifestyle products, announced two significant strategic moves today, further enhancing its position in the beauty industry.
The company has increased its ownership in Dot & Key, a rapidly growing skincare brand, to 90%, up from its previous majority stake of 51%.
Additionally, Nykaa has acquired a majority stake in Earth Rhythm, a prominent homegrown clean beauty brand.
Nykaa will pay Rs. 265 crores to acquire an additional 39% stake in Dot & Key, bringing its total ownership to 90%.
The founders, Suyash and Anisha Saraf, will continue to manage the brand while retaining a minority ownership stake.
Since Nykaa’s initial investment in 2021, Dot & Key has experienced exponential growth, achieving profitability in early 2023.
The brand’s annualized Gross Merchandise Value (GMV) run rate has surpassed Rs. 750 crores, making it one of the most successful Indian beauty brands of the past decade.
“We are thrilled to expand our partnership with Dot & Key. The Dot & Key success story is a testament to the collective strength of our partnership – driving excellence in unique formulations, constant innovation, energized marketing and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand – across people and processes.” said Adwaita Nayar, Co-founder of Nykaa and CEO of Nykaa Fashion and Beauty Brands.
In a parallel move, Nykaa has acquired a majority stake in Earth Rhythm, a brand known for its clean and sustainable beauty products.
Founded in 2019, Earth Rhythm has quickly gained momentum with a diverse product range and a strong commitment to sustainability.
Nykaa initially invested in Earth Rhythm in 2022 and has now deepened its involvement, with the brand set to become a subsidiary of FSN E-Commerce Ventures Limited, Nykaa’s parent company.
Harini Sivakumar, Founder and CEO of Earth Rhythm, expressed enthusiasm about the partnership, stating, “I am thrilled beyond words that Earth Rhythm has received a powerful affirmation from Nykaa in our journey and the impact we’re making. Nykaa has a comprehensive and a strong distribution platform that can be leveraged by brands, allowing them to grow in a profitable manner. Nykaa’s 360-degree marketing across social media, influencer network and content allow brands to grow in an otherwise competitive market. With this deepened partnership, Earth Rhythm can continue to innovate and grow, bringing even more value to our existing customer base while expanding our reach. I’m incredibly excited for what lies ahead.“
These acquisitions underline Nykaa’s strategy to strengthen its portfolio of owned brands, focusing on high-growth, innovative companies that align with the evolving preferences of Indian consumers.
