Nykaa Q1 Results: Profit Jumps 50%, Misses Estimates

The Mumbai-based e-commerce company will also acquire an additional 39% stake in Dot & Key Wellness Pvt. from its promoters, who are also existing shareholders of the company, for Rs 265.3 crore.

Nykaa will obtain 5.29 lakh shares of Dot & Key Wellness and after the completion of the transaction, the e-commerce company's stake will increase from 51% to 90%. Dot & Key will continue to remain a subsidiary of Nykaa.

Nykaa will also further invest in Earth Rhythm Pvt. via a combination of primary and secondary up to Rs 44.5 crore. It will receive 57,302 equity shares and 12,226 warrants and after the completion of the investment, Earth Rhythm will become a subsidiary of the company.

"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," Adwaita Nayar, chief executive officer at Nykaa Fashion and Beauty Brands, said.

"We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem," she said.