Beauty, cosmetics and apparel e-commerce giant Nykaa’s founder Falguni Nayar’s net worth jumped to $6.5 billion as she entered into the world’s richest club post the IPO of her startup. Mrs. Nayar owns about half of her own started venture Nykaa.
On November 10, the company was finally listed on the stock exchanges of the country with a blockbuster response The company’s shares surged as high as 89% the day it started trading.
Thanks to the massive surge, Nayar became the India’s richest self-made female billionaire. Shares of her company opened at Rs. 2,018 on Tuesday, giving a 79.4% premium as it was anticipated to fetch a price of Rs. 1,125.
Background
A new dawn is emerging for Indian tech startups. While earlier these startups sought investments through multiple rounds of fundings from venture capitalist companies, now Indian startups are venturing into a whole different ballgame – the IPO.
In India several tech startups have been reported to have filing for IPOs or planning for the same at least. Earlier this year, food delivery giant Zomato forayed into the stock markets and had its IPO. It’s also being widely speculated that fintech giant Paytm, hotel-aggregator Oyo and cab-hailing platform Ola are planning to file IPO.
Meanwhile, Nykaa – cosmetics, apparel and lifestyle products e-commerce platform had its initial public offering today, giving its subscribers a blockbuster response.
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The Facts of the Matter
Online cosmetic marketplace Nykaa – the sanskrit word for a heroine – recently forayed into the Indian stock market after its stocks were traded on the Bombay and National Stock Exchanges. The startup, which works as a brand under the umbrella of FSN E-Commerce Ventures, saw a magnificient high on the share market. As of 1.30 PM, the company’s shares were surging 96% higher than the original issue price. FSN’s market capitalization thanks to the blockbuster IPO has already crossed Rs. 1 lakh crore.
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Nykaa Founder Adds $6.5 Billion in Net Worth
Meanwhile, Nykaa founder Mrs. Falguni Nayar also entered the world’s richest club post the IPO. She owns about half of the shares of the startup she started back in 2012. As the day progressed, she ended up adding a whopping $6.5 billion as her net worth. According to the Bloomberg Billionaires Index, she is currently the richest self-made female billionaire in India.
Katrina Kaif Graces Nykaa’s IPO Event
On the occasion of the company being listed on the markets, the company’s investor Katrina Kaif was also seen making an appearance at the event. Reportedly, Katrina Kaif is also an investor in Nykaa and has her own beauty line Kay Beauty on Nykaa.
Mrs. Falguni Nayar was asked about Katrina Kaif’s presence and was quoted in an NDTV report saying, “We own a brand jointly with Katrina Kaif called Kay Beauty. It’s a brand that we started together and she’s been very instrumental in helping us build the brand.”
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Who is Falguni Nayar? What is Nykaa’s Story?
Nykaa’s story is nothing short of the fulfilment of the ‘Indian Dream’ where age is no bar and the only thing that matters is your vision, your patience and your hard work. Nykaa was founded in 2012 by Falguni Nayar, an investment banker who had already turned 50 and was doing quite well for her in her professional career.
The IIM-A graduate wanted to foray into the e-commerce business – a sector which was largely dominated by the likes of Amazon and Flipkart. However, what separated Mrs. Falguni’s vision was that instead of being a A-Z product supplier, she focused on creating a niche.
Her brand started off by selling cosmetic brands from across the world to a fashion-conscious Indian population. In about 8 years, the company achieved profitability – in 2020 it was announced that Nykaa was profitable for FY 2019.
The same year, the company ended up getting the unicorn status and was valued at $1.2 billion.
