Nykaa has acquired a majority stake in homegrown skincare brand Dot & Key, the first direct-to-consumer (D2C) beauty brand acquired by the IPO-bound beauty and fashion e-commerce platform.
This is the first D2C (direct-to-consumer) beauty brand acquired by Nykaa and following this investment by Nykaa, Dot & Key will join Nykaa’s stable of owned brands, Nykaa said in a statement on Friday.
While the company did not disclose the financial details, Nykaa’s red herring prospectus (RHP) shows it purchased 3,35,000 equity shares from the existing shareholders of Dot & Key for about Rs 46.9 crore and further subscribed to 3,57,143 equity shares for a consideration of about Rs 50 crore.
“On September 28, 2021, our company acquired 51 per cent of the outstanding equity shares of Dot & Key Wellness Private Ltd (Dot & Key) through the subscription and purchase of equity shares.
“Following this investment, Dot & Key became one of our owned brands and this investment will allow us to expand our skincare, personal care, and nutraceuticals offerings,” it added.
In tranche 2, a consideration of up to Rs 153 crore will be made to acquire up to 49 per cent stake of the promoters during FY2025 depending on performance and valuation, it said.
Dot & Key, which offers premium skincare products across serums, toners, cleansers, and face masks, became a subsidiary of the company on September 28, 2021, the RHP added.
Founded by Kolkata-based Suyash Saraf and Anisha Saraf, Dot & Key has recently expanded into nutraceuticals under the brand ‘IKWI’.
“We are excited to bring Dot & Key into the Nykaa family in time to serve the demand in high-quality skincare by Indian consumers.
“Dot & Key’s product range presents an exciting opportunity for Nykaa as it allows us to extend the brand’s reach to a larger landscape of consumers and enter the nutraceutical space as well,” Nykaa founder and CEO Falguni Nayar said.
Dot & Key co-founder Suyash Saraf added that Nykaa’s position in the beauty landscape in India and its resources will allow Dot & Key to grow further as a brand and scale to the next level.
Categories: Corporate M&A