Indian beauty startup Nykaa eyes US$500m through IPO

Bengaluru

INDIAN e-commerce beauty company Nykaa plans to raise US$500 million through its initial public offering (IPO), a source with direct knowledge of the matter told Reuters, becoming the latest homegrown startup to pursue a listing on the domestic bourses.

Private equity firm TPG-backed Nykaa, based in Mumbai, sells cosmetics, grooming products and clothes. Nykaa said its IPO will consist of a fresh issue of shares of up to 5.25 billion rupees (S$95.49 million) and an offer for sale of up to 43.1 million shares, according to a copy of its draft red herring prospectus dated Monday.

The source said the 5.25 billion rupees will come from fresh shares issued to investors, while the rest will come from existing shareholders.

Nykaa's filing comes after food-delivery firm Zomato's stellar debut last month. Launched in 2012, Nykaa grew popular by selling cosmetics and grooming products on its website and apps, before expanding into fashion, pet care and household supplies. REUTERS