The board of directors of FSN E-Commerce Ventures had approved further investments in Earth Rhythm Private Limited (ERPL) through primary and secondary rounds, in one or more tranches, resulting in ERPL becoming a subsidiary of the company, Nykaa said in a stock exchange filing.
Nykaa had initially announced plans for this majority stake acquisition during its first quarterly earnings report for FY25. This follows the company’s earlier acquisition of an 18.51% minority stake in Earth Rhythm in 2022.
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 notable investors including Anicut Capital. The company was last valued at $28.8 million in 2022.
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Nykaa has been actively increasing its stake in its portfolio brands. Recently, it acquired an additional 39% stake in skincare brand Dot & Key Wellness for Rs 265 crore.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.
Also Read: Ecommerce looks to cut delivery timelines as quick commerce competition looms
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.
Also Read: Quick commerce is taking demand from neighbourhood stores: Nykaa’s Falguni Nayar