Nykaa Acquires Additional 24.2% Stake in Earth Rhythm for Rs 9.4 Crore
In 2026, FSN E-Commerce Ventures, parent company of Nykaa, acquires an additional 24.2% stake in Earth Rhythm for Rs 9.4 crore, consolidating its clean beauty brand portfolio.
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30 SEC SUMMARY
In 2026, Nykaa, through its parent company FSN E-Commerce Ventures, completes the acquisition of an additional 24.2% stake in Earth Rhythm, a clean beauty brand, for Rs 9.4 crore. This move further strengthens Nykaa's portfolio of beauty brands, including Dot & Key and Kay Beauty.
TABLE OF CONTENTS
Introduction
In a significant development in the beauty industry, FSN E-Commerce Ventures, the parent company of Nykaa, has finalized the acquisition of an additional 24.2% stake in Earth Rhythm, valued at up to Rs 9.4 crore. This strategic move underscores Nykaa’s commitment to expanding its clean beauty brand portfolio.
About Earth Rhythm
Earth Rhythm, founded by Harini Sivakumar, is a clean beauty brand that offers a range of skincare, haircare, and makeup products. The brand is known for its non-toxic, sustainable, and eco-friendly formulations. Earth Rhythm’s products are available through its own website, third-party marketplaces, and quick-commerce platforms.
Nykaa’s Investment Strategy
Nykaa’s investment in Earth Rhythm began in 2022 when it acquired an 18.5% stake for Rs 41.65 crore as part of an $8 million Series A round. This initial investment was followed by further acquisitions in 2024, where Nykaa announced an additional investment of up to Rs 44.5 crore, making Earth Rhythm a majority-owned subsidiary.
Growth of Nykaa’s Beauty Business
Nykaa’s beauty business, which constitutes around 90% of its overall revenue, has shown robust growth. In the first quarter of FY26, the company’s beauty business grew by 27.3% year-on-year. The consolidated GMV rose by 34% to Rs 5,590 crore. The House of Nykaa portfolio, which includes Earth Rhythm, Dot & Key, and Kay Beauty, recorded a 49% year-on-year increase in annualized GMV run-rate in FY26.
Future Plans
The acquisition of Earth Rhythm aligns with Nykaa’s broader strategy of adding and scaling new-age beauty and personal care brands. In August 2026, Nykaa announced plans to acquire a 51% stake in Aminu, a premium dermocosmetic brand, for Rs 32 crore. This strategic expansion aims to further consolidate Nykaa’s position in the beauty industry.
FAQs
What is Earth Rhythm?
Earth Rhythm is a clean beauty brand that offers skincare, haircare, and makeup products with non-toxic, sustainable, and eco-friendly formulations.
Why did Nykaa acquire Earth Rhythm?
Nykaa acquired Earth Rhythm to expand its portfolio of clean beauty brands and leverage Earth Rhythm’s strong market presence in the clean beauty segment.
What is the significance of this acquisition for Nykaa?
This acquisition further consolidates Nykaa’s ownership in Earth Rhythm and strengthens its position in the clean beauty market, contributing to the overall growth of its beauty business.
Conclusion
Nykaa’s acquisition of an additional 24.2% stake in Earth Rhythm for Rs 9.4 crore in 2026 is a strategic move that underscores the company’s commitment to expanding its clean beauty brand portfolio. This move is expected to drive further growth in Nykaa’s beauty business, reinforcing its leadership in the industry.
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Sources
This story is an original summary and analysis written by LazyFounders from the reporting listed above. Facts are attributed to their original publishers; sections marked as analysis are LazyFounders's opinion. Where a source is in another language, facts were machine-translated and quotations are reported, not reproduced. Read the original coverage via the links.
