Soon-to-be listed Nykaa plans to expand to Middle East and the UK

• The UK market will serve as the first step towards Nykaa’s expansion in the European market.
• Nykaa had registered a subsidiary in the UK, Nykaa International UK Limited, in 2020.
• Nykaa will flag off its ₹5,200 crore IPO on October 28 and will be listed in November 2021.

Beauty and fashion ecommerce platform Nykaa — which will launch its initial public offering (IPO) later this week — plans to use the proceeds for its international expansion, the company noted in its press conference earlier today (October 25).

The company soon wants to start its operations in the Middle East market as well as the United Kingdom (UK).

Falguni Nayar, the founder and chief executive of Nykaa, highlighted that the demand for Indian cosmetics in the Middle East market is quite high. Therefore, the company would like to take its house of brands — which includes Katrina Kaif’s Kay Beauty, Peppa Bella, 20Dresses, Dot & Key and other brands that Nykaa has set up or acquired — in this market.

Meanwhile, the UK market will serve as the first step towards Nykaa’s expansion in the European market.

“At the moment we are very keen to go into the Middle East, where we think there's a lot of opportunity for Indian consumption. In the Middle East we want to take many of our Indian brands. I will grant you only exposure to the markets… including Kay Beauty which will be able to do very well in the Middle Easter market,” Nayyar said.

Europe, is another area of opportunity that Nykaa is going to start with and then maybe consider expansion, she added.

According to its red herring prospectus (RHP), Nykaa had registered a subsidiary in the UK under the name Nykaa International UK Limited in 2020. The company is authorised to engage in the business of retail sale of cosmetics and toilet articles in specialised stores.

Nykaa will flag off its ₹5,200 crore IPO on October 28. The issue will close on November 1 and the listing will be in subsequent weeks.

The company intends to use this capital to add more retail stores to its network, acquire more brands and enter newer verticals.


*The amount utilised for general corporate purposes shall not exceed 25% of the net proceeds

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