Nykaa raises Rs 100 crore from Steadview

Online cosmetics and beauty products retailer Nykaa has raised Rs 100 crore (US$ 14.31 million) from existing investor Steadview Capital. Although, the company has suspended operations due to the lockdown to tackle the Covid-19 pandemic in India.

Retail stores and offices have been shut down. Nykaa informed the vendors that due to the impact on their cash flow and income there will be a delay in making payments of outstanding invoices.

According to the statement of Nykaa to vendors, "The spread of covid-19 across the globe has caught everyone unprepared...Most of the state governments have issued directives to temporary shutdown establishments, retail stores, logistics, business operations, etc. We are adhering to every instruction of the government and the health department and will continue to do so. Thus, we have suspended our operations and temporarily shut down all our retail stores, our corporate offices, warehouses pan India."

"The lockdown has already impacted business across industry, and this will have significant impact on the business cycle including cash conversion cycle. Like all consumer-facing businesses, we now face a situation where our cash flow and income are impacted, but on the other hand, our expenses remain constant. In light of this, we find it prudent to update you that there will be a delay in making payments of outstanding invoices to all vendors and partners," it added.

"Please note we are only accepting prepaid orders for now on daily essentials. We have started deliveries to select pin codes in Mumbai, Pune, New Delhi and Bangalore. However, there might be some delays due to local constraints. We are doing our best to restart deliveries to other cities," it said.

“We are very grateful to achieve this significant milestone. We deeply value the trust and support of our investors, customers and brand partners who have been instrumental to our success. In the midst of this unprecedented global crisis we are working to ensure all our stakeholders are well served and that Nykaa emerges as a leading retail player in the industry," Ms Falguni Nayar, founder and CEO of Nykaa, said, in the statement on the latest fund raise.

“We are excited to deepen our partnership with Nykaa. Nykaa has transformed the beauty industry in India and has established a very strong brand. We believe the company is poised for a strong growth trajectory in the years to come. The company’s focus on customer service and capital efficiency stands out in the Indian ecommerce space," Mr Ravi Mehta, founder and CIO of Steadview Capital, said

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.