Nykaa Earth Rhythm acquisition: 24.2% stake buy completed
FSN E-Commerce Ventures, Nykaa’s parent company, has completed the acquisition of an additional 24.2% stake in beauty and personal care brand Earth Rhythm. The Nykaa Earth Rhythm acquisition was approved for a cash consideration of up to Rs 9.4 crore.
FSN E-Commerce Ventures said in a stock exchange filing that it had executed the required transaction and procedural documents and that the additional equity shares had been credited to its demat account.
What the Nykaa Earth Rhythm acquisition adds
Nykaa’s board approved the proposed increase in its shareholding on May 21, allowing the company to acquire up to 24.2% additional equity in Earth Rhythm. The transaction was structured as a cash purchase of up to Rs 9.4 crore.
The latest stake buy further consolidates Nykaa’s ownership of Earth Rhythm, a clean beauty brand founded by Harini Sivakumar. The source does not state Nykaa’s resulting ownership percentage after this transaction.
Nykaa’s earlier investments in Earth Rhythm
Nykaa first invested in Earth Rhythm in 2022, acquiring an 18.5% stake for Rs 41.65 crore as part of an $8 million Series A round alongside existing investor Anicut Capital.
In August 2024, Nykaa announced a further investment of up to Rs 44.5 crore through a combination of primary and secondary transactions. Following that investment, Earth Rhythm became a majority-owned subsidiary of Nykaa.
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Earth Rhythm sells skincare, haircare and makeup products built around clean, non-toxic and sustainable formulations. The brand sells through its own website, third-party marketplaces and quick-commerce platforms.
How Earth Rhythm fits Nykaa’s beauty portfolio
The transaction comes as Nykaa expands its portfolio of owned and acquired beauty brands. Its House of Nykaa portfolio, which includes Dot & Key, Earth Rhythm and Kay Beauty, recorded a 49% year-on-year increase in annualised GMV run-rate in FY26.
Nykaa’s beauty business, which accounts for around 90% of overall revenue, grew 27.3% year-on-year in the first quarter of FY27. Consolidated GMV rose 34% to Rs 5,590 crore during the quarter.
The Earth Rhythm transaction also follows Nykaa’s broader strategy of adding and scaling new-age beauty and personal care brands. In August, the company announced plans to acquire a 51% stake in premium dermocosmetic brand Aminu for Rs 32 crore.
For Nykaa, the additional Earth Rhythm stake increases its ownership in a brand that is already part of its majority-owned beauty portfolio.
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