Nykaa buys digital lifestyle platform Little Black Book

Nykaa, operated by FSN E-commerce Ventures Ltd., will acquire the content-based shopping platform in an all-cash deal “at a mutually agreed pre-money valuation, subject to closing adjustments,” according to a statement. The transaction is expected to be completed in 60 days.

LBB is backed by venture capital firms such as Bloom Ventures, Chirate and Dream Incubator.

Online beauty and personal care and fashion company reported net profit 4.5 crore for the quarter ended June, a growth of 32.4% 3.4 crore a year ago on higher income from sources other than its core business.

other income increased to 8.4 crore 4.7 crore a year ago.

June quarter revenue up 41% to 1,148.4 crore 817 crores. On the operational front, Nykaa performed relatively well with its EBITDA expanding to over 70% 45.9 Cr vs. 26.9 crores.

The company’s EBITDA margin increased to 4% from 3.3% a year ago.

However, tax spending increased Credits of 2.7 Crore Vs. 37 lakh yo. Nykaa’s stock fell 1.7% on Friday 1,420 on NSE.

Despite the hostile and challenging macroeconomic environment, our business continues to grow vertically, demonstrating the strength of our business fundamentals. “The beauty vertical, online and offline, is witnessing strong growth momentum while building efficiencies across the value chain,” said Falguni Nair, Managing Director and Chief Executive, Nykaa.

The company’s beauty and personal care vertical has increased its Gross Merchandise Value (GMV) by 39%. 1,489 crores from a year ago, while its fashion GMV increased by 59% 582 crores.

Commenting on the investment in the new growth vertical, Nair said in a statement, “We continue to invest in building a customer proposition in fashion, with growth in platform experience and depth in assortment. The gradual growth of the fashion vertical in Q3 and Q4 is a result of these, along with a revival in factors such as mobility and travel.”

Nykaa claims to offer over 4,000 brands and 3.1 million product stock-keeping units (SKUs) through its website and mobile app. “We are focused on investing in the growth engine, especially Superstore, Nykaa Man and international operations,” Nair said in the statement.

On a sequential basis, Nykaa’s net profit saw a decline of 42.3% quarter-on-quarter, while the topline and operating figures each saw a growth of over 18%.

In a separate filing on the acquisition of Little Black Book, Nykaa said the move is in line with Nykaa’s content-first approach to engage with its loyal consumer base. The filing does not disclose the financial details of the transaction, which is expected to be completed within 60 days of its execution.

LBB, which is powered by Illuminar Media Pvt. Ltd, was founded in 2015 by Suchita Salwan and Dhruv Mathur. The startup focuses on audience engagement through content and discovery. It claims to have over 70 million users. The startup posted a revenue of approx. 19.5 crore in the financial year 2020-21.

In LBB’s last major funding round in 2019, the startup raised $5 million in a Series A round led by Inventus India and IAN Fund in April 2019. Japanese investors Dream Incubator and Akatsuki Entertainment Technology Fund also contributed, as did existing investors including Bloom Ventures. ,

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