Nykaa completes purchase of an additional 24.2% stake in Earth Rhythm

Nykaa has completed the acquisition of an additional 24.2% stake in clean beauty brand Earth Rhythm for up to Rs 9.4 crore, extending its push to build a larger owned-brand beauty portfolio.

— Source publishedSat, 5 Sept, 2026, 17:54 IST·First seen Sat, 5 Sept, 2026, 18:02 IST·Source YourStory · Capital

What happened

Nykaa completed acquisition of an additional 24.2% stake in clean beauty subsidiary Earth Rhythm for up to Rs 9.4 crore, further consolidating ownership as it

Key facts

  • 24.2% additional stake
  • up to Rs 9.4 crore cash consideration
  • 18.5% stake acquired in 2022 for Rs 41.65 crore
  • $8 million Series A round
  • up to Rs 44.5 crore investment announced in August 2024
  • 49% year-on-year increase in House of Nykaa annualised GMV run-rate in FY26
  • 27.3% year-on-year beauty business growth in Q1 FY27
  • 34% increase in consolidated GMV to Rs 5,590 crore
  • 51% Aminu stake planned for Rs 32 crore

Why this matters

This follow-on acquisition signals Nykaa’s preference for consolidating promising portfolio brands, making Earth Rhythm a clearer candidate for deeper integration and scaled distribution.

What to watch

  • Nykaa's disclosed post-transaction ownership level, board rights and whether it moves toward majority control.
  • Earth Rhythm GMV, revenue growth, repeat-purchase metrics and contribution margin in subsequent Nykaa disclosures.
  • Expansion into Nykaa physical stores, rapid-delivery channels or offline third-party retail.
  • Changes in promotional discounting, SKU assortment, product launches and customer ratings.
  • Evidence of supply-chain consolidation, improved availability or margin expansion within Nykaa's owned-brand portfolio.
  • Competitive moves from Purplle, Mamaearth/Honasa, Minimalist, Foxtale and other ingredient-led beauty brands.
  • Increase Earth Rhythm visibility across Nykaa's app, website, stores, beauty events and influencer ecosystem.
  • Integrate demand forecasting, fulfillment and customer data to reduce stock-outs and improve inventory turns.
  • Refresh Earth Rhythm's core categories such as hair care, skin care and body care, emphasizing clinically legible efficacy alongside clean-beauty claims.
  • Use bundled routines, Nykaa loyalty offers and cross-selling with adjacent House of Nykaa brands to raise basket size and repeat rates.
  • Consider further stake purchases, governance changes or operational integration if performance milestones are met.

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