According to recent reports, Nykaa, the Omnichannel lifestyle retailer is preparing for its initial public offering (IPO) as it has converted itself into a public limited company.
Nykaa, founded in 2012, has recently renamed itself to FSN e-commerce Ventures Limited from FSN e-commerce Ventures Private Limited. The shareholders of Nykaa passed a resolution to this effect on July 16. This step by Nykaa keeps it on the path to an IPO, and the retailer is expected to file its draft red herring prospectus (DRHP) very soon.
Nykaa now joins the list of other companies which are now planning to go public, including Paytm, PolicyBazaar, MobiKwik, and CarTrade. According to latest industry reports, Nykaa is looking to raise about $700 million at a valuation of $4.5 billion in its IPO. With Nykaa’s news the Indian startup ecosystem is breathing a new whiff of growth, with IPOs ruling the aisle like never before.
While we wait for Nykaa’s official debut, the next big IPO from this ecosystem to watch out for will be Paytm, which has lined up Rs 16,600 crore and indications are that it is likely to hit the market in October this year.
IPOs also signals the movement of the Indian economy away from the foreign investments and drives the point home to Atmanirbhaar Bharat.