FSN E-Commerce Ventures Limited — Capital/Financing Update 2024

Aug 13, 2024

FSN E - Commerce Ventures Limited

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August 13, 2024

National Stock Exchange of India Limited

Symbol: NYKAA

BSE Limited Scrip Code: 543384

Dear Sir,

Subject: Press Release

Please find enclosed the Press Release titled as follows:

NYKAA EXPANDS STRATEGIC OWNERSHIP IN DOT & KEY AND EARTH RHYTHM

We request you to take the above information on records.

Thanking You,

Yours faithfully, For FSN E-Commerce Ventures Limited

NEELABJA Digitally signed by NEELABJA CHAKRABARTY CHAKRABARTY Date: 2024.08.13 16:27:35 +05'30'

Neelabja Chakrabarty Company Secretary & Compliance Officer

Registered Office: 104 Vasan Udyog Bhavan | Sun Mill Compound | S. B. Marg | Tulsi Pipe Road | Lower Parel (W) | Mumbai – 400013 Website: www.nykaa.com | Phone: +91 22 6614 9696 | Email – companysecretary@nykaa.com CIN: L52600MH2012PLC230136

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NYKAA EXPANDS STRATEGIC OWNERSHIP IN DOT & KEY AND EARTH RHYTHM

Nykaa increases ownership in beauty brand Dot & Key to 90%

India, 13 August, 2024: Nykaa today announced that it is increasing its existing majority stake of 51% in Dot & Key to 90% by acquiring the additional stake of 39% for a consideration amount of Rs. 265 Crores.

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Suyash and Anisha Saraf, the founders of Dot & Key, shall continue to manage and drive the business and will continue to have an ownership stake in the company

Nykaa’s investment in Dot & Key is a testament to the strength and performance of the brand, its long-term potential as well as the key strategic role it plays in Nykaa’s growing owned brands portfolio. Dot & Key is a fruit-forward skincare brand focused on providing high quality skincare products that promise efficacy. The brand ensures all its products are clinically tested and certified safe. With over 75 unique formulations that combine the best of nature & power of science, the brand has served over 5 million Indian customers.

Nykaa had made its initial investment in 2021 and since then the brand has grown over multifold, while also achieving profitability since early 2023. With an annualized GMV run rate of over 750 crores as of Q1FY25, the brand today represents one of the biggest success stories for Indian beauty brands of the last decade. Dot & Key has significantly outperformed the industry growth and its rankings on marketplace platforms across categories is a testament to its rapid growth.

Over the years, Dot & Key has won tremendous customer love, specifically with Millennials & Gen-Z consumers owing to its unique customer proposition. This is driven through differentiated

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assortment, continuous innovation basis customer feedback and unique formulations. The brand’s proposition combined with Nykaa’s expertise as well as marketing and distribution strength has led to a successfully scaled beauty brand.

The increased ownership of the high-growth, profit accretive brand will drive further alreadyproven synergies with Nykaa’s strengths, allowing Dot & Key to accelerate its next phase of growth.

Adwaita Nayar , Co-founder, Nykaa, CEO Nykaa Fashion and Beauty Brands “We are thrilled to expand our partnership with Dot & Key. The Dot & Key success story is a testament to the collective strength of our partnership – driving excellence in unique formulations, constant innovation, energized marketing and holistic distribution. Entering this new phase, we plan to continue to invest deeply in the brand – across people and processes.”

Suyash Saraf , Co-founder and CEO, Dot & Key “Dot & Key has seen exponential growth over the last 2 years and the Indian beauty scenario looks bright for us to continue the robust growth momentum. We are excited to harness the power of the strong online and offline distribution capabilities of Nykaa to expedite our growth journey.”

Nykaa acquires majority stake in Earth Rhythm

India, 13 August, 2024: Nykaa today announced that it is acquiring a majority stake in Earth Rhythm, a leading homegrown clean beauty brand, founded in 2019.

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Nykaa had acquired a minority stake in the brand in 2022 and with this additional investment, the company affirms its commitment to the long-term opportunity presented by Earth Rhythm which has been built with the ethos of transparency, efficacy and sustainability.

The brand develops clean and clinically effective beauty and personal care products that are safe for both people and the planet, through responsible use of resources and plastic neutral practices.

The five-year old brand has seen immense developments in a short span of time, displaying strong momentum in key parameters of sales growth, customer acquisition, category depth, innovation and brand awareness.

The brand offers over 250 SKUs across 6 categories. Earth Rhythm proudly owns its R&D and manufacturing capabilities, leading to in-house quality control through testing and stability studies, allowing the brand to ensure efficacy of formulations and drive innovation to meet customer needs.

While preserving Earth Rhythm’s distinct proposition, core strengths and values, Nykaa through its ecosystem and expertise will be able to further unlock the young brand’s massive potential across categories through its innovation, marketing and omnichannel distribution capabilities.

The company will be acquiring the additional stake through a combination of primary and secondary transactions. Following this, Earth Rhythm will become a subsidiary of FSN E- Commerce Ventures Limited.

Adwaita Nayar , Co-founder, Nykaa, CEO Nykaa Fashion and Beauty Brands “Earth Rhythm represents an exciting addition to our owned brands portfolio, and it presents an opportunity to expand our play in the clean beauty space, a category with immense long-term potential. The brand’s truly unique formulations and commitment to sustainability across the supply chain – from ingredients to packaging to processes – have struck a chord with its loyal consumer base. We look forward to expanding the reach and accessibility of the brand, ramping up growth by leveraging operational synergies with the Nykaa ecosystem.”

Harini Sivakumar , Founder and CEO, Earth Rhythm “I am thrilled beyond words that Earth Rhythm has received a powerful affirmation from Nykaa in our journey and the impact we’re making. Nykaa has a comprehensive and a strong distribution platform that can be leveraged by brands, allowing them to grow in a profitable manner. Nykaa’s 360-degree marketing across social media, influencer network and content allow brands to grow in an otherwise competitive market. With this deepened partnership, Earth Rhythm can continue to innovate and grow,

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bringing even more value to our existing customer base while expanding our reach. I’m incredibly excited for what lies ahead.”

About Nykaa

At Nykaa, we share one vision- to bring inspiration and joy to people everywhere, every day. Born out of a desire to make beauty a mainstream choice, the Nykaa journey began in 2012 as a digitally native, consumer-tech company. Falguni Nayar’s entrepreneurial leap with Nykaa, tapped into an underserved beauty retail market, disrupting the ecosystem and putting India in the global spotlight. Today, Nykaa has expanded its offerings to include lifestyle and B2B by introducing online platforms Nykaa Fashion, Nykaa Man, and Superstore.

Over the years, Nykaa has steadily captured the hearts of Indian consumers, ushering visits to both its online and 198 offline destinations and building loyal communities through engaging and educational content.

Nykaa continues to build its house of brands with a sharp focus on innovation and consumer delight. Beauty brands such as Kay Beauty, Nykaa Naturals, Nykaa Cosmetics, and Wanderlust and fashion brands such as Nykd, Gajra Gang, Likha, RSVP and Pipa Bella, have become household names, as they consistently deliver on inspiration and high performing products to the consumers.

Nykaa’s unwavering commitment to authenticity and customer centricity has made it the retailer of choice for international brands entering India. Nykaa’s Global Store, a gateway into the world of coveted international brands, leverages the company’s proven supply chain and marketing capabilities to offer a truly seamless shopping experience.

For its role in building India’s beauty and lifestyle retail markets, Nykaa has been awarded several Indian and International accolades and was proudly featured in the TIME100 Most Influential Companies List.