Nykaa Raises Stake in Earth Rhythm to 75.83%
By Ankur Chandra | Updated at: Jun 10, 2025 11:21 AM IST
FSN E-Commerce Ventures Ltd (NSE: NYKAA | BSE: 543384) has completed the second tranche of its planned investment in Earth Rhythm Private Limited (ERPL), infusing ₹5 crore through subscription of 4,072 Series A Optionally Convertible Redeemable Preference Shares.
With this, Nykaa now holds approximately 75.83% stake in ERPL on a converted basis, strengthening its position in the clean beauty segment.
What Is the Investment Structure and How Has Progress Unfolded?
The ₹5 crore investment marks the second and final tranche under the Share Subscription and Shareholders Agreement (SSHA) and Share Purchase Agreement (SPA) executed in August and November 2024. The initial tranche, completed on November 26, 2024, had already elevated ERPL to a subsidiary status within Nykaa’s portfolio.
Shareholding Snapshot
| Tranche | Investment Amount | Stake Post-Tranche | Date Completed |
|---|---|---|---|
| 1st Tranche | Not disclosed | Not disclosed | November 26, 2024 |
| 2nd Tranche | ₹5 crore | ~75.83% (converted) | June 9, 2025 |
Securities Subscribed
| Security Type | Quantity | Face Value | Purpose |
|---|---|---|---|
| Series A OCRPS | 4,072 | ₹10 | Working capital needs |
What Is the Strategic Rationale Behind the Move?
Nykaa’s incremental investment reflects a long-term conviction in ERPL’s growth prospects. Earth Rhythm has garnered significant consumer trust with its sustainable, clinically-backed beauty products, including innovative offerings like sunscreen sprays and shampoo bars. The capital infusion will fuel ERPL’s working capital and portfolio expansion, while leveraging Nykaa’s robust ecosystem spanning product innovation, marketing, and omnichannel distribution.
What Does the SEBI Filing Confirm About the Second Tranche?
The disclosure was made under Regulation 30 of the SEBI (LODR) Regulations, 2015, confirming the conclusion of the second tranche as per the terms of the SSHA and SPA.
FSN E-Commerce Ventures Share Performance
Shares of FSN E-Commerce Ventures have gained 18% in the last year, 21% in the year-to-date, and 0.82% in the last month.
About FSN E-Commerce Ventures
FSN E-Commerce Ventures Ltd, listed on NSE and BSE under the symbol “NYKAA”, is India’s leading omnichannel beauty and lifestyle retailer. Through its proprietary brands and marketplace, Nykaa offers a curated platform spanning beauty, fashion, and wellness categories.
REF: https://nsearchives.nseindia.com/corporate/NYKAA_09062025193745_SEIntimation.pdf
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