FSN E-Commerce Ventures Ltd. owns Nykaa, an Indian startup in cosmetics. Its profit dropped 96% in quarters preceding its initial public offering. This was due to increased marketing costs. The stock market plunged Monday. Nykaa stock fell as high as 7.4% at Rs 2,185 on Monday. However, it recovered some of its losses and traded 3.28 percent lower.
After a Sunday market launch, Nykaa reported a net profit of 11.7 millions rupees ($157.306.69) in its first earnings reports.
It was 274.7 millions rupees for the September quarter, as opposed to 274.7 million rupees last year. The gross merchandise value of Nykaa’s beauty, personal care and fashion sections increased by 38 percent. However, its GMV nearly tripled in the same quarter. The company had eight new locations as of September 30, bringing the total number to four.
Falguni Nayar (Cee), Chief Executive Officer, stated that “We have maintained growing momentum within our cosmetics industry, advanced our fashion company, and focused on building Nykaa’s brand through great marketing campaigns.” The IPO made Falguni Nayar India’s richest female billionaire. She now owns almost half of the company.