FSN E-Commerce Ventures Limited, the parent company of beauty and fashion retailer Nykaa, has completed the acquisition of a majority stake in clean beauty and personal care brand Earth Rhythm.
The company that had bought 18.51% in Earth Rhythm Pvt Ltd in 2022 said in August that its board approved a proposal to acquire a majority stake. The approval was to purchase both new shares and those held by existing shareholders and make Earth Rhythm a subsidiary, FSN E-Commerce said in an exchange filing Tuesday.
Founded in 2015 by Harini Sivakumar, Sivakumar Varadarajan, and Arun Kumar, Earth Rhythm—formerly known as Soapworks India—is an internet-first brand offering a range of organic beauty products spanning skincare, haircare, and makeup. Its product lineup includes face masks, toners, hair oils, shampoos, conditioners, lipsticks, and lip balms.
The brand claims to offer products that are vegan, cruelty-free, biodegradable, and free of artificial fragrances.
According to data from Tracxn, Earth Rhythm has raised $9.1 million to date, with Anicut Capital among its investors. The company was last valued at $28.8 million in 2022.
This majority stake acquisition comes as Nykaa accelerates its quick commerce initiatives, focusing on a segment of its inventory comprising fast-moving everyday stock-keeping units (SKUs), including essential beauty products, with delivery timelines ranging from 30 minutes to three hours.
The company has also piloted a 10-minute delivery service in Borivali, Mumbai, as reported by ET.
For the quarter ended September, Nykaa reported a 24% year-on-year (YoY) increase in operating revenue to Rs 1,875 crore. Its consolidated net profit surged 66% to Rs 13 crore during the same period.
Nykaa shares closed at Rs 170.3 on the BSE on Wednesday.
Source: Economic Times