Entrackr News: October 2021

Friday, October 22, 2021

Nykaa Updates Its Latest Equity Offer to Raise 630 Crore in IPO

Nykaa IPO News

A marketplace that is primarily focused on beauty, Nykaa has updated its red prospectus for herrings (DRHP) to boost the value of its new offering by Rs 100 crore. Based on regulatory reports, Nykaa is now seeking to raise around 630 crore in IPO.

In August, the company stated within the DRHP, that it planned to raise 525 crore through the forthcoming Initial public offer (IPO). According to media reports, Nykaa could raise $500 million (Rs 4000 crore) however, the company did not reveal the exact amount of its IPO it had announced in the DRHP at a price of between $4.5-5 billion (Rs 35,000-40,000 crore).

According to sources in the industry the company has been granted acceptance from SEBI for the public listing of its stock and will likely be listed at the exchange before the end of the month.

Planning of lower stakes in Nykaa IPO

Nykaa will use the fresh funds to open warehouses and stores as well as to fund operations online and also repay its borrowers. Promoter Sanjay Nayar Family Trust and Nykaa's investors: Lighthouse, TPG Growth, Sunil Munjal among others will lower their stakes in the planned Nykaa IPO.

If the company is listed at $4.5-5 billion, it would be a 2.5X increment from the $1.8 billion value in November of 2020 when Massachusetts-based Fidelity Investments had picked up additional shares of the Mumbai-based company.

Contrary to most companies that are preparing for public listing, Nykaa is a profitable venture. Based on its DRHP report, the company reported the sum of Rs 61.94 crore in profit and operating revenues of 2440.89 crore for the fiscal which ended March 2021.

Also read: Licious becomes India’s first unicorn company in the D2C segment

The fact that promoters are a part of Nykaa differs from other IPO-bound businesses. Falguni along with Sanjay Nayar, along with their trusts of family members hold 53 percent of the company with a variety of rights that are favorable.

Nykaa is also older than the other internet-based consumer businesses that are preparing to go public. It was founded in 2012 by Nayyar back in the year 2012 Nykaa is able to fulfill more than 60,000 daily orders it claims that they have more than 15 million users registered. There are 73 physical stores spread across 38 cities across India with three stores at the close of FY21.

If you want to stay updated with the latest ongoings in the start-up industry, then visit our official website “Entrackr”.

Wednesday, October 13, 2021

Dream 11 suspended its operations post FIR registered against them in Karnataka

Fantasy sports website Dream11 has suspended operations for customers in Karnataka after a first Information Report (FIR) was made against Dream11's founders for violating the law prohibiting betting and wagering on games played online.

Dream11 continued to be operational throughout the state, until the beginning of Sunday, even though its rivals such as Mobile Premier League (MPL), Paytm First Games and RummyCircle have been unable to offer their services to users of Karnataka following the fact that the state legislature adopted a law prohibiting betting and wagering platforms and money betting.

"In order to allay our users' concerns, we have decided to suspend operations in Karnataka," stated Dream11 in a press release.

According to the company, they have been informed by Federation of Indian Fantasy Sports (FIFS) that the Karnataka Police (Amendment) Act 2021 is not applicable to its members Fantasy Sports Operators. "The FIFS format of Fantasy Sports has been upheld by the courts of India as not amounting to gambling, betting or wagering," the statement reads.

The app was withdrawn soon after an FIR was registered against the co-founders of Dream 11 in the Annapoorneshwarinagar Police Station in West Bengaluru.

Wednesday, October 6, 2021

Licious becomes India's first unicorn company in the D2C segment

Latest Startup Funding News

Licious becomes India’s first D2C unicorn

Direct-to-consumer seafood and meat brand Licious became the first Indian unicorn in the D2C segment when the brand raised $52 million under the guidance of IIFL's Late Stage Tech Fund. It is also the 29th company that has achieved the status of a unicorn in 2021 .

As of June this year, Bengaluru's firm was able to raise $192 million in the Series F round of funding that was led by Temasek and Multiples Private Equity. Brunei Investment Agency and existing investors 3one4 Capital, Bertelsmann India Investments, Vertex Growth Fund as well as Vertex Ventures Southeast Asia and India were also part of the round.

"Even though the funding for the D2C sector has grown significantly, FMCG is still not considered the most attractive category," said Vivek Gupta and Abhay Hanjura who co-founded Licious.

"The fresh meats and seafood sector is still largely underserved and unorganised that holds a vast opportunity of $40 billion," they said.