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Cosmetic e-commerce startup Nykaa announced on Tuesday that it has secured INR 100 crore from existing investor Steadview capital. No other investor apparently participated in the latest funding round.
Times of India report claims that Nykaa has raised the latest funding at an approximate valuation of $1.2 Bn, making the Mumbai headquartered startup the latest Indian unicorn startup. However, the company still hasn’t confirmed the valuation figures yet.
Coincidentally, on the same day last year Nykaa had raised exactly the same amount of money from the US based TPG Growth. Soon after, it acquired fashion & styling e-commerce platform 20Dresses.
However, NyKaa’s latest funding assumes great importance given that it has come amid a massive lockdown period, which has invariably dried the funding taps across the entire Indian startup ecosystem. With 100 crore funding boost, the company is likely to be much better placed to tackle impending economic challenges in the aftermath of lockdown period.
Like all other companies, even NyKaa’s business is massively suffering due to COVID 19 lockdown. On Tuesday, .i.e. on the same day it raised funds, the company informed all the vendors that it is suspending all the operations and all its retail stores will be shutting down during the lockdown period.
In a mail send to online vendor association, NyKaa said “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.” The mail was first accessed by business publication Mint.
