Nykaa’s IPO valuation gets super-sized


Madhav Chanchani

121 reads

Madhav Chanchani

121 reads

The omni-channel beauty products seller has bumped up its valuation expectation to over $7 billion as it prepares to hit the street next week. It has also acquired direct-to-consumer brand Dot & Key

October 22, 2021


After the successful listings of Zomato in India and Freshworks in the US, the next set of India’s most valued internet companies is gearing to tap the capital markets. 

The News: Nykaa is targeting a valuation of over $7 billion, sources inform The CapTable, as it gets ready to hit the public markets next week. The company has also increased its primary issue by 20%, the maximum permissible amount, from Rs 525 crore ($70 million) to Rs 630 crore ($84 million). 

A majority of the IPO, around Rs 4,700 crore (nearly $630 million), is by way of offers for sale by existing shareholders, who collectively own about 41.97 million shares, according to Nykaa’s draft IPO prospectus. Overall, the IPO is pegged at Rs 5,330 crore ($712 million). 

Nykaa increased the valuation target for its IPO after meeting with potential investors. When the company, owned by FSN E-Commerce Ventures, filed for its IPO in August, indications were that it would target a valuation of $4-5 billion, and leave enough upside for incoming investors for a “pop” after the listing. 

Zomato, which was the first homegrown Unicorn to go for an IPO, has seen its share price nearly double from its IPO price. 

Still More Upside: “(Nykaa is) now targeting a $7-billion-plus valuation for the public offering,” said one source briefed on the matter. “The bankers pushed them to go for a valuation as high as $9 billion, given the demand.” 

Read this article for free

Sign in using


Sign in using your email

Don't have an account?

Forgot Password?

By signing up for The CapTable you agree to the

Terms of Service


Privacy Policy

of the platform.

Smart Information, Better Decisions

We report on the latest and most important developments in India’s biggest tech companies and disruptive startups so you can make better decisions.

Inside View with Org Charts

Know the key decision-makers with Org Charts. We thrive on decoding boardroom conversations so we can bring you a 360° view of what's happening at India's high-growth companies.

Seasoned Team

Tracking the highs and lows of India’s biggest internet companies over the past decade has given us access to the right decision-makers to interpret the latest state of play.

Inside View

We thrive on inside scoops and decoding boardroom conversations so we can bring you a 360° view of what’s happening at India’s high-growth companies.

For subscribers only

Premium Reads


View More >>

Deeply reported and objective news on the country´s fastest-growing companies and the people behind them.