BENGALURU: Beauty retailer Nykaa on Friday announced investments in beauty brand Earth Rhythm and activewear brand Kica. It is also entering into the nutraceutical space by partnering with D2C brand incubator Onesto Labs. The Falguni Nayar-led Nykaa will form a new category of nutraceuticals and wellness products under Nudge Wellness.
In an exchange filing, the company said it is acquiring 18.51% stake in Earth Rhythm for Rs 41.65 crore. This investment will strengthen Nykaa's product portfolio into a sustainable beauty segment. Earth Rhythm, formerly known as Soapworks India, was launched in 2015, by Harini Sivakumar. Its revenue in FY21-22 was Rs 18.56 crore.
Anchit Nayar, CEO, E-commerce Beauty, Nykaa said, “We are proud to partner with a promising early-stage start-up and help them achieve their potential by leveraging Nykaa's expertise and ecosystem.”
With an aim to strengthen its active-wear play, Nykaa Fashion, the brand's fashion vertical, also announced the acquisition of activewear brand Kica, founded by Aneesha Labroo in 2017, for Rs 4.51 crore. This acquisition is to strengthen its active-wear play, Nykaa said in the filing.
Kica will be an integral part of Nykaa Fashion's market expansion this year, along with other consumer brands like Nykd, Pipa Bella, Twenty Dresses, RSVP, Gajra Gang, IYKYK and Likha.
Nykaa's partnership with Onesto Labs is aimed at bolstering the early-stage beauty and lifestyle ecosystem. It is acquiring 60% of Nudge Wellness, a nutricosmetics wellness company, for Rs 3.6 crore. Nykaa aims to become the first mover in the nutraceuticals category in India. Nudge will be in the business of manufacturing and selling dietary supplement products, the company said.
Also, the investment will mark Nykaa's entry into owned brand of dietary supplement and other nutricosmetics products.