Cosmetics startup Nykaa, which is backed by private equity firm TPG, is reportedly gearing up to go public in early 2022 with a target valuation of more than $3 billion. This move comes as several Indian companies, including Burger King India, Mrs. Bectors Food, and Mindspace Business Parks REIT, have experienced successful initial public offerings.

Established in 2012 and based in Mumbai, Nykaa initially made a name for itself by selling cosmetics and grooming products through its online platform and apps. However, the company has since broadened its offerings to include fashion, pet care, and household supplies, expanding its reach and increasing its potential customer base.

According to sources, Nykaa is currently working with advisors to prepare for a share sale in Mumbai. In addition to TPG, the startup also enjoys support from India’s Hero Enterprise and Fidelity Management and Research Co. However, both Nykaa and TPG have chosen not to comment on the IPO plans at this time.

The cosmetics industry in India has experienced notable growth in recent years, driven by factors such as rising disposable incomes, evolving beauty standards, and the influence of social media influencers. This favorable market environment has allowed companies like Nykaa to thrive and capitalize on the increasing demand for cosmetics and grooming products.

By going public, Nykaa aims to further expand its business and solidify its position as a leading player in the Indian cosmetics and personal care market. The IPO not only provides the company with additional funds for growth and potential acquisitions, but it also offers a platform for Nykaa to gain wider recognition and attract a larger customer base.

The decision to tap into the public markets demonstrates Nykaa’s confidence in its future prospects and the belief that investors will eagerly invest in the rapidly growing Indian beauty industry. With an ambitious target valuation of over $3 billion, Nykaa’s IPO has the potential to become one of the largest listings in India’s consumer goods sector.

Overall, Nykaa’s plans for an IPO showcase the company’s drive and determination to capitalize on the flourishing cosmetics market in India. As the demand for beauty and grooming products continues to soar, Nykaa aims to establish itself as a key player in this lucrative industry. Backed by TPG and other investors, the company is well-positioned to achieve its goals and create value for both its shareholders and customers.

Useful links:
Nykaa website
TPG website