The promoter family of beauty and fashion start-up Nykaa will continue to hold a 51 per cent stake in the company following the proposed IPO. The promoter family has three members in the top management team: founder Falguni Nayar, daughter Adwaita. The latter is the CEO of Nykaa Fashion and son Anchit, CEO of the beauty e-commerce platform.

They will continue to play a critical role in running the business. The company has a diversified range of investors, which include Fidelity, TPG, Steadview Capital, Sunil Munjal, and Bollywood star Katrina Kaif, among others.
Beauty platform company Nykaa is likely to be the first profitable company from the startup space, putting its IPO plans on the fast track. Sources told Moneycontrol that Nykaa would file its DRHP with the market regulator SEBI in the next few days.

Sources suggest that Nykaa is eyeing a valuation of approx. $4-5 billion in its proposed IPO, but it depends on market condition, investor appetite and global peer comparison. Nykaa’s public offering could be around half a billion dollars which are likely to be primarily a secondary sale of shares. TPG Growth, Steadview Capital, Fidelity, Hero Group’s Sunil Kant Munjal are likely to sell their shares as part of the IPO.

A small portion of the IPO issuance is expected to be primary, around 70-75 million dollars. The company is profitable and does not need cash to grow, a source with direct knowledge suggested.