Nykaa and Policybazaar file for IPO

FSN Ecommerce Ventures Ltd (Nykaa), has filed draft red herring prospectus (DRHP) with SEBI for its proposed IPO. Better known in the market by its brand name Nykaa, the beauty aggregator platform is looking to raise funds through a combination of fresh issue and an offer for sale. 

Nykaa plans to raise Rs.525 crore through fresh issue of shares and will issue an additional 4.31 crore shares via OFS. The selling shareholders will include the promoters, Sanjay Nayyar Family Trust, as well as investors like TPG, Lighthouse, JM Financial, Sunil Kant Munjal and H S Banga. Overall size of the IPO is pegged at Rs.3,500 crore. The company is estimated to be seeking a valuation of close to $4 billion.

Nykaa offers online and offline aggregation platform for cosmetic and beauty solutions, including a host of marquee global brands. Nykaa has a total of 4.37 crore downloads across its various apps. In addition, it also has offline presence in the form of 73 stores spread across 38 Indian cities.

While Nykaa has a top line of over Rs.1,800 crore, it is still loss making. The success of the Zomato IPO has underlined the investor appetite even for loss-making digital IPOs. In its last fund raising about 18 months back, Nykaa was valued at $1.5 billion. Nykaa was promoted in 2012 by Falguni Nayyar, former head of investment banking at Kotak Mahindra Capital.

PB Fintech (Policybazaar.com) has filed its DRHP with SEBI for its proposed Rs.6,018 crore IPO. The IPO will comprise of a fresh issue of Rs.3,750 crore and an offer for sale of Rs.2,268 crore. Policybazaar.com boasts of marquee investors on its roster like Softbank, Temasek and Info Edge. Incidentally, Info Edge is also the largest shareholder in Zomato. The biggest selling shareholder in Policybazaar OFS will be the Softbank unit, SVF Python Fund.

Policybazaar is an insurance aggregator which allows potential customers to compare different insurance policies on a variety of parameters before deciding on which policy to buy. Policybazaar offers screening of insurance policies, comparison across originators and fulfilment or execution on the website itself. 

For FY21, Policybazaar had revenues of Rs.887 crore and net losses of Rs.153 crore. Net losses had nearly halved on yoy basis. Indian insurance industry is estimated to be worth $102 billion in terms of total premiums, so it is a huge market for Policybazaar.