FSN E-Commerce Ventures subsidiary Nykaa E-Retail to raise Rs 125 crore

Beauty and fashion giant Nykaa’s parent company FSN E-Commerce Ventures plans to raise Rs 125 crore for its subsidiary business Nykaa E-Retail through non-convertible debentures. The move comes as Nykaa increasingly eyes international expansion.

The funds will be raised through a foreign portfolio investor, ET Tech reported, citing a filing by FSN E-Commerce Ventures on the stock exchange. To proceed with the investment, Nykaa’s board of directors has given the go ahead for the issuance of up to 12,500 non-convertible debentures, which have a face value of Rs 1 lakh each, enabling the business to raise Rs 125 crore on a private placement basis.
 
Nykaa has recently tweaked its business structure and approved the sale of its western wear and accessories business to FSN E-Commerce Ventures for a total of Rs 133 crore, the Economic Times reported. Illuminar Media Limited, a media-focused subsidiary of Nykaa, was merged with Nykaa Fashion, which operates its own clothing and accessories focused e-commerce platform.
 
As Nykaa continues to expand across India, the business is widening its gaze to the global market. The business debuted an e-commerce store dedicated to the UAE and Saudi Arabia in January this year and then launched its first brick-and-mortar store in the region in March in Dubai with plans for further global expansion.