Beauty and fashion retailer Nykaa, operated by FSN E-Commerce Ventures and led by Falguni Nayar, is reportedly in talks with Deepika Padukone’s premium skincare brand 82°E to acquire a majority stake. This move comes as Nykaa continues to strengthen its House of Nykaa portfolio amid intensifying competition in the beauty and personal care market.
“The potential deal hinges on Nykaa’s market leadership position, cumulative beauty customer base of 42 million, and ability to build on repeat orders and scale, to help turn around the flagging 82°E,” one of the executives said.
Notably, Nykaa and Padukone already share a strategic relationship. The platform appointed the actress as its global brand ambassador in September last year, where she led marquee campaigns such as Pink Friday Sale and Nykaaland. However, both Nykaa and 82°E did not respond to queries regarding the ongoing discussions.
Meanwhile, 82°E is expected to retain a minority stake if the deal materializes. However, the brand has struggled to meet growth expectations. Its premium pricing strategy, with products averaging ₹2,500 for 50-ml jars, coupled with unclear positioning and rising competition from digital-first skincare brands, has weighed on performance. Consequently, the direct-to-consumer venture, launched in late 2022, reported a 30% decline in revenue to ₹14.7 crore in FY25, while losses stood at ₹12.26 crore, according to regulatory filings.
On the other hand, Nykaa continues to aggressively expand its footprint and portfolio. The company competes with players such as Reliance Retail’s Tira, Sephora, and Shoppers’ Stop Beauty. In line with its House of Nykaa strategy, the retailer has strengthened its offerings through acquisitions of brands like Nudge Wellness, Dot & Key, and Earth Rhythm.
Furthermore, the company has delivered strong financial performance. It reported a 156% year-on-year jump in net profit to ₹68 crore for the quarter ended December 31, 2025. At the same time, consolidated revenue rose 27% to ₹2,873 crore, driven by robust demand and improved margins. Additionally, Nykaa expanded its offline presence by adding 11 new stores and entering four new cities during the quarter, taking its total store count to 276.
At an industry level, a joint report by Nykaa and Redseer highlighted that India is the world’s fastest-growing beauty and personal care market. The report projected the sector to reach $34 billion by 2028, up from $20 billion last year. Moreover, e-commerce continues to lead growth within the segment, supported by increased access to global premium brands, rising discretionary spending, and strong demand from tier 2 and tier 3 cities, alongside a younger consumer base.
Nykaa’s potential investment in 82°E signals a strategic push to consolidate its leadership in India’s rapidly expanding beauty market. While the deal could provide 82°E with the scale and distribution it needs to revive growth, it also reinforces Nykaa’s long-term vision of building a diversified and competitive in-house brand ecosystem.
