Nykaa completes acquisition of additional 24.2% stake in Earth Rhythm

FSN E-Commerce Ventures, the parent company of online beauty retailer Nykaa, has finalized the acquisition of a further 24.2% share in beauty brand Earth Rhythm. The transaction, approved by the company's board on May 21, was valued at up to Rs 9.4 crore and completed on Saturday. The additional equity shares were registered in Nykaa's demat account, following the execution of all necessary transaction and procedural documents.

This move strengthens Nykaa's ownership in the clean beauty brand, which was initially acquired by the e-commerce giant in 2022 for an 18.5% stake in a $8 million Series A round. The latest investment follows a significant scaling-up of Earth Rhythm's stake in August 2024, when Nykaa increased its investment to up to Rs 44.5 crore, making Earth Rhythm a majority-owned subsidiary.

Earth Rhythm offers skincare, haircare, and makeup products, focusing on non-toxic and sustainable formulations. The acquisition aligns with Nykaa's strategy of expanding its portfolio of owned and acquired beauty brands, which includes Dot & Key, Earth Rhythm, and Kay Beauty. In the first quarter of FY27, Nykaa's beauty business, accounting for around 90% of overall revenue, grew 27.3% year-on-year, while consolidated GMV rose 34% to Rs 5,590 crore.