Nykaa on Tuesday announced that it is increasing its existing majority stake of 51 per cent in Dot & Key to 90 per cent by acquiring the additional stake of 39 per cent for a consideration amount of Rs 265 crore. Per the agreement, Suyash and Anisha Saraf, the founders of Dot & Key, shall continue to manage and drive the business and will continue to have an ownership stake in the company
Nykaa had made its initial investment in 2021 and since then the brand has grown multifold, while also achieving profitability since early 2023. Adwaita Nayar, Co-founder, Nykaa, CEO, Nykaa Fashion and Beauty Brands, said, “The Dot & Key success story is a testament to the collective strength of our partnership – driving excellence in unique formulations, constant innovation, energized marketing and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand – across people and processes.”
Further, Nykaa also announced that it is acquiring a majority stake in Earth Rhythm, a homegrown clean beauty brand, founded in 2019. Nykaa had acquired a minority stake in the brand in 2022. The brand offers over 250 SKUs across 6 categories. The company will be acquiring the additional stake through a combination of primary and secondary transactions. Following this, Earth Rhythm will become a subsidiary of FSN ECommerce Ventures Limited.
Adwaita Nayar said, “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. The brand’s truly unique formulations and commitment to sustainability across the supply chain – from ingredients to packaging to processes – have struck a chord with its loyal consumer base. We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem.”