Nykaa on Friday announced that it has made strategic investments in three companies including beauty brand Earth Rhythm, Delhi-based dietary supplements company Nudge Wellness and athleisure brand KICA. The investments were approved by the board of directors of Nykaa on April 22, 2022.
The company established by Falguni Nayar in 2012, has acquired 18.51 per cent stake in science-focused beauty brand Earth Rhythm for Rs 41.65 crore.
Earth Rhythm, formerly known as Soapworks India, was launched in 2015, in a humble home-based set-up by Harini Sivakumar. The company it clocked a revenue of ₹18.5 crore (unaudited) in fiscal year 2022 that ended last month. This is nearly a four-fold jump from ₹ 5.6 crore earned by the company in the last fiscal.
“Entering into a share subscription agreement, share purchase agreement and shareholders’ agreement by the company to acquire by way of subscription and/or purchase of compulsory convertible cumulative preference shares and/or equity shares, up to 18.51% of the fully diluted share capital of Earth Rhythm Private Limited,” the company said in a statement.
Nykaa also bought 60% stake in Nudge Wellness at a consideration of ₹3.6 crore. This acquisition marks Nykaa’s entry into dietary supplements and nutricosmetic products.
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Nykaa said its partnership with Onesto Labs to create Nudge Wellness is one among a slew of its recent partnerships with homegrown D2C brands, aimed at bolstering the early-stage beauty and lifestyle ecosystem and building the next generation of brands specializing in sustainable and inclusive products.
Further, Nykaa also acquired athleisure brand ‘KICA’ for Rs 4.51 crore. Kica is an active wear athleisure brand that offers garments on their own website and other ecommerce platforms. The company was founded by Aneesha Labroo in September 2016.
