Beauty and fashion platform Nykaa has completed a transaction to increase its ownership stake in personal care brand Earth Rhythm, according to a filing with the exchanges on Sunday. As part of the transaction, Nykaa has increased its stake in Earth Rhythm by around 25%, with the company receiving the newly issued shares.
Earlier, Nykaa’s board had approved the proposal to increase its ownership in Earth Rhythm in May.
Notably, Nykaa first invested in Earth Rhythm in April 2022, when it acquired an 18.51% stake in the personal care brand for Rs 41.65 crore. Subsequently, in November 2024, it was reported that Nykaa’s parent company had acquired a majority stake in the clean beauty and personal care brand.
Founded in 2015 by Harini Sivakumar, Sivakumar Varadarajan, and Arun Kumar, Earth Rhythm was formerly known as Soapworks India. Since its inception, the internet-first brand has built a portfolio of organic beauty products across skincare, haircare, and makeup.
However, Nykaa did not disclose the financial details of the latest transaction or specify its total ownership stake in Earth Rhythm following the deal.
Meanwhile, Nykaa has continued to invest in and acquire smaller beauty and wellness brands as part of its broader expansion strategy in India’s online retail market. For instance, in August, Nykaa’s board of directors approved the acquisition of a 51% stake in Mumbai-based skincare brand Aminu for Rs 32 crore.
Financially, Nykaa’s parent company reported a net profit of Rs 80 crore in the June quarter, compared with Rs 24 crore in the corresponding period a year earlier. Furthermore, its operating revenue increased 29% year-on-year (YoY) to Rs 2,782 crore in Q1 FY27, up from Rs 2,155 crore in the same quarter a year earlier.
Including other income of Rs 9.3 crore during the quarter, the company’s total income stood at Rs 2,791.3 crore.
