Nykaa started out as a digital beauty platform, but over time it’s become so much more - a brand that now spans makeup, fashion, wellness, retail stores, and everything in between.
In 2021, Nykaa made a move that symbolised just how far it had come: it went public through a landmark IPO 🧨
In addition to being a milestone, this was also a signal to the market, to investors, and to consumers that the company was ready to enter the big leagues.
Also, Nykaa wasn’t alone. This IPO was a reflection of the momentum building across tech driven startups in India, and how many were ready to scale on the public stage.
Going Public
When Nykaa launched its IPO - Initial Public Offering - it was essentially opening its doors to anyone who wanted a piece of the company. Investors could now buy shares, and in return, Nykaa would raise money to fuel the next phase of its growth.
Why a brand like Nykaa went public in the first place? 📣
For a brand like Nykaa, listing on the stock exchange did a few important things:
it boosted credibility with customers, suppliers, and business partners
it gave the brand visibility far beyond its usual audience
it created liquidity, making it easier for existing investors to sell shares
it also opened the door to future funds through additional share offerings
What it Took 📋
Going public isn’t a quick process. Companies have to check a lot of boxes to list on the BSE and NSE: proving financial health, transparency, governance, etc.
And while some companies list on one stock exchange, Nykaa listed on both the NSE and BSE - doubling its visibility and reach.
The Cost of Going Public 💰
Listing on a stock exchange isn’t free though…
Companies pay listing fees to the exchange (both one-time and annual) depending on their size and the amount of capital they’re raising. Plus, there’s the lawyers, bankers, accountants, and even marketing.
This isn’t cheap – but for many companies, the long term benefits of visibility, credibility, liquidity, and easier access to capital outweigh the costs.
Nykaa’s IPO Success 🎯
In November 2021, Nykaa made its market debut by listing on both the NSE and BSE.
The IPO had a price band of ₹1,085 to ₹1,125 per share (the price range investors could bid within), with the final issue price fixed at ₹1,125 - thanks to strong demand.
The IPO was also set up with a lot size (a fixed number of shares you have to apply for) of 12 shares.
Investor demand was staggering - the IPO was oversubscribed 82x (investors wanted to buy 82 times more shares than were actually available).
Nykaa’s IPO window ran from October 28 to November 1, 2021.
The company raised over ₹5,000 crore, and this success helped turn founder Falguni Nayar into India’s richest self made female billionaire, according to Forbes.
The impact of this overall was huge. Post IPO, Nykaa:
Opened dozens of new physical stores across India, including Nykaa and Nykaa Luxe outlets (which focus on premium beauty brands)
Scaled up Nykaa Fashion
Launched new verticals in wellness, beauty-tech, & private labels
Pushed Nykaa-owned products across categories
Invested in events, pop-ups and collaborations
So Nykaa’s IPO wasn’t just a funding event - it helped the company transition into a more confident, visible, and multi-category brand.
Life after Listing 🔄
Once the company is listed, its shares start trading on stock exchanges.
Here’s what that would look like:
The stock price will move based on company performance, news, investor expectations, market sentiment.
Investors (from young professionals to mutual funds and institutions) can now buy or sell shares freely.
Being public = more eyeballs = more responsibility; it now has to report its earnings every quarter, follow stricter regulations, and keep investors in the loop.
Public opinion matters too: how the company is seen by investors and the media can impact everything – from its stock price to its future plans.
So life after listing means more public attention, but also more opportunities to grow, build trust, and attract long term investors.
The Broader Picture: Zomato, Paytm, etc 📲
Nykaa’s IPO wasn’t a one-off instance - it was actually part of a bigger wave of tech driven brands going public in 2021, a year that really changed the game for Indian startups.
Zomato was one of the first big names to go public, raising over ₹9,000 crore through its IPO and listing on both the NSE & BSE.
This funding helped Zomato transform into a broader platform by:
-Investing in delivery infrastructure & logistics
-Expanding on advertising & marketing
-Building on loyalty programs
-Acquiring Blinkit to enter the quick commerce space
Then came Paytm, Policybazaar, and others - a signal that a whole new generation of digital brands was ready to enter the public markets.
Why This Matters 💡
The IPO wave of 2021 – with Nykaa, Zomato, Paytm, etc – wasn’t just about headlines and sky high valuations; it marked a shift in how Indian startups grow, scale, and raise capital.
For everyday investors, it meant being able to own a piece of the brands they use and love. For companies, it signalled maturity - stepping into a space that demands more transparency, long term thinking, and public accountability.
Sources: SEBI, BSE, NSE, Forbes, LiveMint, BloombergQuint, Moneycontrol, The Economic Times, Business Standard, Zerodha Varsity.
Next week: something fun coming up…less market stuff, more strawberries and Centre Court! 🎾 Stay tuned 😉
Just a head’s up: I’m not an advisor or expert, just someone who’s curious, still learning, and trying to make sense of finance as I go. This isn’t financial advice - just good old thinking out loud.
Brilliant read Taannyaa! You’re doing an amazing job demystifying the world of finance for young minds. Keep it going!
I love the example of Nykaa makes it relatable! And the broader connect to the shift in India’s startup ecosystem is so fascinating