ETF Database
is now
VettaFi.
Originally published by EMQQ Global.
Nykaa is India’s version of Sephora, an Indian eCommerce behemoth in the online beauty and personal care business that is using the strategy used by so many Chinese Internet pioneers and is investing its profits into the strategic stakes in several emerging brands in India. Nykaa has recently bought strategic stakes in Earth Rhythm, Nudge Wellness, and Kica Active according to an Indian stock exchange filing.
Earth Rhythm is an online beauty and wellness store and app that is focused on organic skincare and beauty products that are non-toxic and clinically effective. Earth Rhythm is India’s 1st homegrown brand that also invests in independent clinical trials and research for products it sells. According to Nykaa, this investment will further strengthen its product portfolio and will move it into the sustainable beauty segment, and will also improve its positioning in a growing market for products that are committed to efficacy as well as the planet.
At Earth Rhythm, they believe in Smart and Safe skincare. The products you use should work and be good for your skin and earth, with no exceptions. Each of their formulas is created in-house by trained Cosmetic Chemists and is made to be effective, safe, and backed by cited scientific research. As a women-owned firm, it is no surprise that Nykaa is investing in other women-owned businesses. Earth Rhythm’s Founder and CEO Harini Sivakumar built up the business that she now runs with her father as a partner.
According to Nykaa, this investment will further strengthen its product portfolio and will move it into the sustainable beauty segment, and will also improve its positioning in a growing market for products that are committed to efficacy as well as the planet.
Nykaa has acquired an 18.51 percent stake in Earth Rhythm.
The Nykaa acquisition of Nudge Wellness gives it access to the dietary supplements and nutricosmetics business. Taking the strategy one step further Nykaa has partnered with digital to consumer (D2C) brand incubator Onesta Labs which currently owns 100 percent of Nudge Wellness. Plus with the acquisition, they are in a position to further help and launch homegrown D2C brands and early-stage companies aimed at the beauty, personal care, and lifestyle business.
The acquisition of the KICA brand will boost Nykaa’s goal to strengthen its active-wear segment, providing greater variety and curation for the growing active-wear community of athletes and everyday fitness seekers. The KICA products will also augment the current Nykaa offerings under the company brand “Nykd”.
To gain exposure to Nykaa, EMQQ Global has three flavors of exposure to Nykaa also known as FSN E-Commerce Ventures LTD., Single Country Fund – (6.39% of the fund) INQQ – The India Internet & Ecommerce ETF, Emerging Markets X China (0.64% of the fund) FMQQ – The Next Frontier Internet & Ecommerce ETF and Broad Emerging Markets (0.10% of the fund) EMQQ – The Emerging Markets Internet & Ecommerce ETF.
For more news, information, and strategy, visit the Emerging Markets Channel.
