Little Black Book, a Chiratae-backed digital content platform, is acquired by Nykaa
According to the company's filing, Little Black Book's acquisition will help Nykaa improve content distribution and promote brand discovery.
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In an all-cash transaction, FSN E-Commerce Ventures Ltd, which owns and operates the online retailer of beauty products and accessories known as Nykaa, acquired a 100 percent ownership in Little Black Book, a platform for digital content sponsored by Chiratae Ventures.
According to Nykaa's filing, the acquisition's value will be determined by a pre-money appraisal that both parties will agree upon. Little Black Book, or lluminar Media Pvt Ltd, was valued at $17.1 million as of January 2021, when it recently secured a $890,000 round from Inventus Capital and Chiratae Ventures, according to data from Tracxn Technologies.
According to the company's filing, Little Black Book's acquisition will help Nykaa improve content distribution and promote brand discovery. According to Nykaa, the transaction is anticipated to close within 60 days after execution.
Urban millennials can browse and shop on the lifestyle discovery portal Little Black Book, which Suchita Salwan and Dhruv Mathur created in 2015. For the fiscal year that ended in March 2021, the company generated revenues of Rs 19.44 crore.
The purchase of a digital content company by Nykaa is reminiscent of the purchases of Momspresso by Mamaearth, ScoopWhoop and Miss Malini by The Good Glamm Group, and Momspresso by Mamaearth. To increase the visibility of their brands, goods and commerce firms are increasingly buying content companies.
Anchit Nayar, CEO of Nykaa Beauty, stated in a recent interview that the company's premium clientele has not been significantly impacted by rising inflation.
"As a store, we haven't yet noticed any appreciable effects of inflation on our numbers. Perhaps it's because our customers are little less impacted than those at the bottom of the funnel because we are slightly on the more premium end, according to Nayar.
On August 5, Nykaa announced that its June quarter profit had increased by 42% year over year to Rs 5.01 crore. Additionally, the company's revenue increased by 41% year over year to Rs 1,148 crore. Gross Merchandise Value (GMV) for Nykaa increased by 47% year over year to Rs 2,155.8 crore.
