Nykaa plans to raise funds to expand business

Targeting Rs 80 to Rs 100 crores revenue by the end of next fiscal, online fashion and beauty products e-tailer Nykaa.com, plans to raise 8 to 10 million dollars (around Rs 49 to 60 crores) by June this year. The company plans to utilize the amount to open two new offline stores apart from launching its private label by March 2016.

Nykaa.com, owned by FSN E-commerce Ventures had earlier got funds worth Rs 20 crores from HNIs. The company runs on an inventory-led business model, where foreign direct investment is not allowed by the Indian government at the moment. With hybrid form of retailing emerging as the future of organized retail in India, Nykaa, which runs one physical store at the Delhi airport aims to add three more, over the next 18 months.

Nykaa would gradually turn into a marketplace offering women-centric fashion categories such as saris, fashion accessories and jewellery. Online retail is expected to be worth six billion dollars (over Rs 37,000 crores) this year, a 70 percent increase over 2014 sales of 3.5 billion dollars (over Rs 21,000 crores), according to Gartner research.