Key Takeaways: 

• The deal is the latest in a series of investments by Nykaa.
• In 2022, the retailer took an 18.51% stake in Earth Rhythm before acquiring a majority stake in November 2024. 
• The acquisition comes as Nykaa expands its portfolio of consumer brands.

The Indian retailer Nykaa made a third investment in clean beauty brand Earth Rhythm.

WHO: Founded in 2019 by Harini Sivakumar, Sivakumar Varadarajan, and Arun Kumar, Earth Rhythm has emerged as a digital-first brand specializing in organic, vegan, and cruelty-free products. Its portfolio includes skincare, haircare, makeup, and lip care products made domestically at its own manufacturing facility in Gurugram, Haryana, India.

Nykaa founder and CEO Falguni Nayar, a former Managing Director at Kotak Investment Banking, founded Nykaa as an e-commerce platform for beauty and wellness products in 2012. The Mumbai-headquartered company launched offline operations in 2015. Nykaa's IPO in November 2021 raised Rs 5,350 crore ($722 million) through the sale. The business has become an omnichannel beauty destination.

DETAILS:

• Nykaa bought an additional 24.2% stake in Earth Rhythm according to a September 5 filing on the Indian National Stock Exchange by the retailer’s parent company, FSN E-Commerce Ventures Limited.
• In 2024, Nykaa acquired a majority stake in Earth Rhythm through a mix of primary and secondary transactions 
• In 2022, Earth Rhythm raised $8 million in a Series A round led by Nykaa. Existing investor Anicut Capital also participated in this round. Nykaa acquired an 18.51% stake in Earth Rhythm for Rs 41.65 crore ($4.41 million).
• In July 2021, Earth Rhythm raised $1.2 million in a seed funding round from...