 "Nykaa acquires majority stake in clean beauty brand Earth Rhythm")
Beauty and fashion brand Nykaa announced on Wednesday that it has completed the acquisition of a majority stake in Earth Rhythm, a home-grown clean beauty and personal care brand.
Nykaa had previously acquired a minority stake in the company in 2022 through a combination of primary and secondary transactions.
Nykaa said in a statement that it will help Earth Rhythm unlock further growth potential across categories by leveraging innovation, marketing, and omnichannel distribution capabilities while preserving the brand’s core values and distinct proposition.
“Earth Rhythm represents an exciting addition to our owned brands portfolio, and it presents an opportunity to expand our play in the clean beauty space, a category with immense long-term potential,” said Adwaita Nayar, co-founder of Nykaa and chief executive officer (CEO) of Nykaa Fashion and Beauty Brands.
“We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem,” Nayar added.
Founded in 2019, Earth Rhythm offers a range of beauty and personal care products that are certified organic, plant-based, and 99 per cent plastic-free. Its best-selling products include Lip and Cheek Tint, Shampoo Bars, Sunsticks, and Hydrating Sunscreens. The brand offers more than 250 stock keeping units (SKUs) across six categories.
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“Nykaa has a comprehensive and strong distribution platform that can be leveraged by brands, allowing them to grow profitably. Nykaa’s 360-degree marketing across social media, influencer networks, and content allows brands to thrive in an otherwise competitive market,” said Harini Sivakumar, founder and CEO of Earth Rhythm.
Nykaa recently reported a 67 per cent year-on-year (Y-o-Y) increase in net profit to Rs 13 crore for the second quarter ended September 30, compared to Rs 7.8 crore in the same period last year. However, profits fell four per cent sequentially from Rs 13.6 crore in the previous quarter, according to regulatory filings.
The company’s consolidated revenue from operations grew 24 per cent Y-o-Y to Rs 1,875 crore, up from Rs 1,507 crore a year ago and Rs 1,746 crore in Q1 FY25. Meanwhile, Nykaa’s earnings before interest, taxes, depreciation, and amortisation (Ebitda) grew 29 per cent Y-o-Y to Rs 103.7 crore in Q2 FY25.