IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

FSN E-Commerce Ventures (Nykaa) / Equity Capital Markets

FSN E-Commerce Ventures (Nykaa) (NYKAA IN)

<p><a href="https://www.smartkarma.com/entities/fsn-e-commerce-ventures-nykaa" target="_blank" data-smartkarma-citation="entities:33796:1" rel="noopener">FSN E-Commerce Ventures (Nykaa) (1003622D IN)</a> provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. </p><p>Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. </p><p>Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. </p><div class="content-highlight"><p>Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.</p></div>

FSN E-Commerce Ventures (Nykaa) (1003622D IN) provides e-retailing of beauty and fashion products through two verticals Nykaa (beauty and personal care) and Nykaa Fashion (apparel and accessories). Nykaa is the largest speciality beauty and personal care platform in India as measured by the value of products sold in the FY21, according to RedSeer. Nykaa is looking to raise $500 million through an IPO in India, according to press reports. The IPO comprises a primary raise of Rs5,250 million ($70 million) and 43.1 million secondary shares. Nykaa has a large addressable market opportunity with the beauty and personal care opportunity currently worth $16 billion and the fashion opportunity currently worth $54 billion, according to RedSeer. At 8% penetration in FY21, beauty and personal care are one of the more underpenetrated e-commerce categories in India. Online penetration in fashion in India is slightly higher at 12% in FY21 but is still relatively low compared to mature e-tailing categories such as mobiles and electronics. Nykaa has a strong positioning in India’s e-commerce beauty products industry, underpinned by the strong brand recognition of the ‘Nykaa’ brand. It has been able to retain a large customer base, leading to repeat orders such that existing consumers accounted for 70% of GMV in FY21. Nykaa also has relationships with 2,476 brands but with no dependence on any brand or product. The financial performance is solid with strong growth, rising margins and cash generation. These characteristics should enable Nykaa to hold its own against intensifying competition. Overall, we think that Nykaa has attractive fundamentals.

FSN E-Commerce Ventures (Nykaa)

Nykaa IPO Initiation: Beauty Parade