Nykaa, an Indian e-commerce beauty company backed by private equity firm TPG, has applied for an initial public offering (IPO), becoming the latest local startup seeking to list on a domestic exchange.

Nykaa’s application was submitted after the food delivery company Zomato made its debut last month. Berkshire Hathaway-backed Paytm, hotel company Oyo Hotels, and ride-hailing company Ola are all backed by SoftBank and are other Indian startups preparing to enter the market.

Nykaa, officially known as FSN E-Commerce Ventures, stated that its initial public offering will include the issuance of new shares, up to a maximum of Rs. According to a draft Red Herring prospectus released on Monday, a sale offer of Rs 525 crore and a maximum of 43.1 million shares.

Mumbai-based Nykaa was launched in 2012 and became popular by selling cosmetics and beauty products on its website and apps, and then expanded to fashion, pet care, and household goods.

As of March 31, the cumulative number of downloads of all the company’s mobile applications was 43.7 million. The prospectus shows that it also has offline operations, including 73 physical stores in 38 cities in India.

In addition to TPG, the company’s investors include financial services company Fidelity and popular Indian film actress Alia Bhatt. According to the prospectus, Nykaa will use the IPO proceeds to set up new retail stores, fund capital expenditures and repay debt.

Morgan Stanley, Bank of America Securities and Citigroup are the main managers of the IPO.

© Thomson Reuters 2021


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