Asia-focused hedge fund Steadview Capital has invested an additional Rs 67 crore in online beauty retailer Nykaa, as the Ravi Mehta-led investment firm continues its deal-making spree this year.
The latest capital infusion follows the Rs 100 crore Steadview Capital invested in the Mumbai-headquartered company in April.
That had reportedly valued the company at about $1.2 billion, in the process catapulting it into the unicorn club, or those startups that command a valuation of $1 billion and upwards.
According to documents filed by the eight-year-old company, accessed by business intelligence platform Tofler, FSN E-commerce Pvt Ltd, the parent entity which owns and operates Nykaa, has allotted an additional 1,09,986 equity shares at Rs 6,049.56 per share to Steadview Capital Mauritius Ltd.
Steadview Capital has now invested close to Rs 170 crore in the company and holds a 3% stake in the venture.
This is the latest deal struck by the Hong Kong and London-based investment firm in the current calendar year.
Since January, the firm, which first came into prominence in 2014 after it invested in India’s largest online retailer Flipkart, has backed wealth management platform INDWealth, logistics Software as a Service company LogiNext, ed-tech venture Unacademy and fintech company BharatPe, through a mix of primary and secondary deals.
The capital infusion comes at a time when risk capital investment activity has almost ground to a halt because of the spread of the Covid-19 pandemic across the globe, which, in turn, has forced vertical ecommerce companies such as Nykaa to conserve cash, given the steep plunge in discretionary spending by consumers.
The latest investment also comes almost a year after the company, which was founded by former merchant banker Falguni Nayar, closed a Rs 100 crore Series E financing round led by TPG Growth, the mid-market investment arm of private equity firm TPG Capital, valuing it at about $730 million at the time.
Nykaa’s focus on customer service and capital efficiency stands out in the Indian e-commerce space, Ravi Mehta, founder of Steadview Capital, had said last month.
For the financial year ended March 31, 2019, the company’s revenue rose to Rs 1,228.8 crore, Tracxn data shows, compared with Rs 578.08 crore in the previous fiscal year. Its post-tax loss narrowed to Rs 21.08 crore against a loss of Rs 28.18 crore.