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Indian beauty e-comm Nykaa to raise $500M through IPO

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It was an extraordinary moment for female entrepreneurs in India as e-commerce beauty startup Nykaa reportedly announced to have grab $500 million through its initial public offering (IPO), becoming the latest homegrown startup to get listed.

The TPG-backed, Mumbai-based Nykaa sells cosmetics, grooming products, and clothes online, and was formally known as FSN E-Commerce Ventures Ltd. Further, its IPO will consist of a fresh issue of shares of up to 5.25 billion rupees ($70.63 million) and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus.

Founded in 2012, Nykaa became successful by selling cosmetics and grooming products on websites and apps, eventually expanding into fashion, pet care, and household supplies.

Nykaa has cumulative downloads of 43.7 million+ across all its mobile applications and has an offline presence comprising 73 physical stores across 38 cities in India.

Apart from TPG, the company also includes financial services company Fidelity and famous Indian bollywood actress Alia Bhatt is also among its investors. Nykaa will be using the IPO proceeds to set up new retail shops, fund capital investment and repay debts, according to the prospectus. Meanwhile, Morgan Stanley, BofA Securities and Citigroup are among the lead book running managers of the IPO.

Its filing comes after food-delivery firm Zomato Ltd’s (another Indian homegrown company), which marked a stellar debut last month. Further, Berkshire Hathaway Inc-backed Paytm, ride-hailing firm Ola and hospitality company Oyo Hotels, both backed by SoftBank, are among other Indian startups set to enter markets.

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