FSN E-Commerce Ventures, the parent company of Nykaa, has completed the acquisition of an additional 24.2% stake in clean beauty brand Earth Rhythm for a cash consideration of up to ₹9.4 crore.
The latest transaction further strengthens Nykaa’s ownership of Earth Rhythm as the beauty and personal care platform continues to expand its portfolio of owned and acquired brands.
Nykaa disclosed the completion of the transaction in a stock exchange filing, stating that the required transaction and procedural documents had been executed and that the additional equity shares had been credited to its demat account.
Nykaa’s Additional Investment in Earth Rhythm
Nykaa’s board had approved the proposed increase in its shareholding in Earth Rhythm on May 21.
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Add INDYASTORY on GoogleUnder the approved transaction, FSN E-Commerce Ventures was authorised to acquire up to an additional 24.2% equity stake in the beauty brand for a cash consideration of up to ₹9.4 crore.
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With the transaction now completed, Nykaa has further consolidated its ownership of Earth Rhythm.
The move is part of Nykaa’s broader strategy of building a portfolio of beauty and personal care brands alongside its core e-commerce business.
Nykaa’s Earlier Investments in Earth Rhythm
Nykaa first invested in Earth Rhythm in 2022.
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The company acquired an 18.5% stake for ₹41.65 crore as part of Earth Rhythm’s $8 million Series A funding round, which also included existing investor Anicut Capital.
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Add INDYASTORY on GoogleNykaa subsequently increased its investment in the brand.
In August 2024, the company announced an investment of up to ₹44.5 crore in Earth Rhythm through a combination of primary and secondary transactions. Following that transaction, Earth Rhythm became a majority-owned subsidiary of Nykaa.
The latest acquisition further increases Nykaa’s ownership in the company.
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Add INDYASTORY on GoogleWhat Is Earth Rhythm?
Founded by Harini Sivakumar, Earth Rhythm operates in the beauty and personal care segment, with products spanning:
- Skincare
- Haircare
- Makeup
The brand positions its products around clean, non-toxic and sustainable formulations.
Earth Rhythm sells through its own online platform as well as third-party marketplaces and quick-commerce channels.
Its positioning gives Nykaa exposure to a segment of India’s beauty market where consumers are increasingly seeking specialised, ingredient-focused and sustainability-oriented products.
Nykaa Continues to Build Its House of Nykaa Portfolio
The Earth Rhythm transaction comes as Nykaa continues to develop its portfolio of owned and acquired beauty brands.
Its House of Nykaa portfolio includes brands such as Dot & Key, Earth Rhythm and Kay Beauty.
According to company-reported figures, the portfolio recorded a 49% year-on-year increase in annualised GMV run-rate in FY26.
The growth reflects Nykaa’s strategy of using its platform, distribution network and customer base to scale brands beyond its core marketplace operations.
Beauty Business Remains Nykaa’s Core Revenue Driver
Nykaa’s beauty business continues to account for the majority of the company’s overall revenue.
In the first quarter of FY27, the company’s beauty business grew 27.3% year-on-year, according to company-reported results.
Consolidated gross merchandise value, or GMV, increased 34% to ₹5,590 crore during the quarter.
The figures highlight the scale of the market in which Nykaa is expanding its portfolio of brands.
Nykaa’s Acquisition Strategy Extends Beyond Earth Rhythm
The Earth Rhythm deal is also part of a wider effort by Nykaa to add newer beauty and personal care brands to its ecosystem.
In August, the company announced plans to acquire a 51% stake in premium dermocosmetic brand Aminu for ₹32 crore.
Such investments allow Nykaa to participate not only in online beauty retail but also in the development and scaling of individual brands.
The strategy gives the company a portfolio approach to the beauty market, combining its marketplace infrastructure with ownership stakes in selected brands.
What the Earth Rhythm Deal Means for Nykaa
The additional 24.2% stake gives Nykaa greater ownership of a brand that operates across several important beauty categories.
For Earth Rhythm, access to Nykaa’s distribution, customer reach and digital ecosystem can provide additional avenues for scaling its products.
For Nykaa, the transaction adds to its growing collection of beauty brands while strengthening its exposure to the clean beauty and personal care segment.
The latest investment therefore fits into Nykaa’s broader strategy of expanding beyond being a beauty marketplace and building a larger portfolio of brands within the sector.
Nykaa–Earth Rhythm Deal: Key Facts
| Particular | Details |
|---|---|
| Parent company | FSN E-Commerce Ventures (Nykaa) |
| Brand | Earth Rhythm |
| Additional stake acquired | 24.2% |
| Transaction value | Up to ₹9.4 crore |
| Founder | Harini Sivakumar |
| Initial Nykaa investment | 18.5% for ₹41.65 crore |
| Initial investment year | 2022 |
| 2024 investment | Up to ₹44.5 crore |
| Product categories | Skincare, haircare, makeup |
| Nykaa portfolio | House of Nykaa |
| Other portfolio brands | Dot & Key, Kay Beauty |
| Latest Aminu deal | 51% stake for ₹32 crore |
