FSN E-Commerce Ventures, the parent company of beauty and fashion firm Nykaa, stated today that it will increase its interest in Dot & Key, a cosmetic brand, to 90% from 51%. The business would pay Rs 256.3 crore for the acquisition, according to regulatory records. The deal is planned to be finalized on September 30, 2024.
Dot & Key's revenue for FY24 then quadrupled to Rs 198.3 crore, up from Rs 57.7 crore in FY23. Dot & Key's founders, Suyash and Anisha Saraf, will continue to manage and lead the firm, and they will keep an ownership position.
Adwaita Nayar, Co-founder and CEO of Nykaa Fashion and Beauty Brands, stated, "We are excited to expand our cooperation with Dot & Key. The Dot & Key success story demonstrates our partnership's overall power, which drives excellence in unique formulas, ongoing innovation, energetic marketing, and comprehensive distribution. As we enter this new era, we intend to make significant investments in the brand, both in terms of people and processes."
Nykaa made its initial investment in 2021, and the brand has expanded multifold since then, hitting profitability in early 2023, with an annualised GMV run rate of more than Rs 750 crore as of Q1 FY25. Nykaa also announced the acquisition of Earth Rhythm, situated in Gurugram, for Rs 44.5 crore, according to a filing.
Nykaa already bought a minority ownership in the brand in 2022, and this current investment reinforces its commitment. The brand has around 250 SKUs in six categories. Earth Rhythm owns the R&D and production capability.
Nayar continued: "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."
