Nykaa increases ownership in beauty brand Dot & Key to 90%
Bengaluru: Nykaa today announced that it is increasing its existing majority stake of 51% in Dot & Key to 90% by acquiring the additional stake of 39% for a consideration amount of Rs. 265 Crores.
Suyash and Anisha Saraf, the founders of Dot & Key, shall continue to manage and drive the business and will continue to have an ownership stake in the company
Nykaa’s investment in Dot & Key is a testament to the strength and performance of the brand, its long-term potential as well as the key strategic role it plays in Nykaa’s growing owned brands portfolio. Dot & Key is a fruit-forward skincare brand focused on providing high quality skincare products that promise efficacy. The brand ensures all its products are clinically tested and certified safe. With over 75 unique formulations that combine the best of nature & power of science, the brand has served over 5 million Indian customers.
Nykaa had made its initial investment in 2021 and since then the brand has grown over multifold, while also achieving profitability since early 2023. With an annualized GMV run rate of over 750 crores as of Q1FY25, the brand today represents one of the biggest success stories for Indian beauty brands of the last decade. Dot & Key has significantly outperformed the industry growth and its rankings on marketplace platforms across categories is a testament to its rapid growth.
Over the years, Dot & Key has won tremendous customer love, specifically with Millennials & Gen-Z consumers owing to its unique customer proposition. This is driven through differentiated
assortment, continuous innovation basis customer feedback and unique formulations. The brand’s proposition combined with Nykaa’s expertise as well as marketing and distribution strength has led to a successfully scaled beauty brand.
The increased ownership of the high-growth, profit accretive brand will drive further already- proven synergies with Nykaa’s strengths, allowing Dot & Key to accelerate its next phase of growth.
Adwaita Nayar, Co-founder, Nykaa, CEO Nykaa Fashion and Beauty Brands “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, energized marketing and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand – across people and processes.”
Suyash Saraf, Co-founder and CEO, Dot & Key “Dot & Key has seen exponential growth over the last 2 years and the Indian beauty scenario looks bright for us to continue the robust growth momentum. We are excited to harness the power of the strong online and offline distribution capabilities of Nykaa to expedite our growth journey.”
Nykaa acquires majority stake in Earth Rhythm
India, 13 August, 2024: Nykaa today announced that it is acquiring a majority stake in Earth Rhythm, a leading homegrown clean beauty brand, founded in 2019.
Nykaa had acquired a minority stake in the brand in 2022 and with this additional investment, the company affirms its commitment to the long-term opportunity presented by Earth Rhythm which has been built with the ethos of transparency, efficacy and sustainability.
The brand develops clean and clinically effective beauty and personal care products that are safe for both people and the planet, through responsible use of resources and plastic neutral practices.
The five-year old brand has seen immense developments in a short span of time, displaying strong momentum in key parameters of sales growth, customer acquisition, category depth, innovation and brand awareness.
The brand offers over 250 SKUs across 6 categories. Earth Rhythm proudly owns its R&D and manufacturing capabilities, leading to in-house quality control through testing and stability studies, allowing the brand to ensure efficacy of formulations and drive innovation to meet customer needs.
While preserving Earth Rhythm’s distinct proposition, core strengths and values, Nykaa through its ecosystem and expertise will be able to further unlock the young brand’s massive potential across categories through its innovation, marketing and omnichannel distribution capabilities.
The company will be acquiring the additional stake through a combination of primary and secondary transactions. Following this, Earth Rhythm will become a subsidiary of FSN E- Commerce Ventures Limited.
Adwaita Nayar, Co-founder, Nykaa, CEO Nykaa Fashion and Beauty Brands “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. The brand’s truly unique formulations and commitment to sustainability across the supply chain – from ingredients to packaging to processes – have struck a chord with its loyal consumer base. We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem.”
Harini Sivakumar, Founder and CEO, Earth Rhythm “I am thrilled beyond words that Earth Rhythm has received a powerful affirmation from Nykaa in our journey and the impact we’re making. Nykaa has a comprehensive and a strong distribution platform that can be leveraged by brands, allowing them to grow in a profitable manner. Nykaa’s 360-degree marketing across social media, influencer network and content allow brands to grow in an otherwise competitive market. With this deepened partnership, Earth Rhythm can continue to innovate and grow,
bringing even more value to our existing customer base while expanding our reach. I’m incredibly excited for what lies ahead.”
