FSN E-Commerce Ventures, the parent of beauty and fashion firm Nykaa, announced today that it is increasing its stake in Dot & Key, a cosmetic company, to 90 per cent from its current 51 per cent.
The company is paying Rs 256.3 crore for the transaction, according to regulatory filings. The acquisition is expected to be completed by September 30, 2024.
Dot & Key’s revenue for FY24 almost doubled to Rs 198.3 crore from Rs 57.7 crore in FY23.
Suyash and Anisha Saraf, the founders of Dot & Key, will continue to manage and drive the business and will retain an ownership stake in the company.
Adwaita Nayar, co-founder, Nykaa, and CEO, Nykaa Fashion and Beauty Brands, said, “We are thrilled to expand our partnership with Dot & Key. The Dot & Key success story is a testament to the collective strength of our partnership – driving excellence in unique formulations, constant innovation, energised marketing, and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand – across people and processes.”
Nykaa made its initial investment in 2021, and since then, the brand has grown multifold, while also achieving profitability since early 2023, with an annualised GMV run rate of over Rs 750 crore as of Q1FY25.
Nykaa also announced that it is acquiring Gurugram-based Earth Rhythm for Rs 44.5 crore, the company said in a filing.
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Nykaa had acquired a minority stake in the brand in 2022, and with this additional investment, it reaffirms its commitment. The brand offers over 250 SKUs across six categories. Earth Rhythm owns its R&D and manufacturing capabilities.
Nayar added, “Earth Rhythm represents an exciting addition to our owned brands portfolio, and it presents an opportunity to expand our play in the clean beauty space, a category with immense long-term potential.”