SUMMARY
- Nykaa finalizes the acquisition of a majority stake in Earth Rhythm, a clean beauty and personal care brand, expanding its owned brands portfolio.
- The deal will focus on enhancing Earth Rhythm’s growth potential via Nykaa’s innovation, marketing, and omnichannel capabilities.
- Earth Rhythm, known for its organic and eco-friendly products, offers over 250 SKUs across six categories.
Nykaa, the leading beauty and fashion brand, has acquired a majority stake in Earth Rhythm, a homegrown clean beauty and personal care brand. The move marks Nykaa’s expanded commitment to tapping into the clean beauty market, which has witnessed significant growth in recent years.
Having acquired a minority stake in Earth Rhythm in 2022, Nykaa aims to drive category innovation and market expansion while preserving Earth Rhythm’s core values of sustainability and eco-consciousness.
Adwaita Nayar, Co-founder of Nykaa and CEO of its Fashion and Beauty Brands division, expressed optimism about the acquisition, “Earth Rhythm represents an exciting addition to our owned brands portfolio. It provides an opportunity to expand our play in the clean beauty space, a category with immense long-term potential.”
The partnership will leverage Nykaa’s marketing expertise, distribution network, and innovation strategies, ensuring Earth Rhythm scales efficiently within its niche.
Founded in 2019, Earth Rhythm is recognized for its certified organic, plant-based products that boast being 99% plastic-free. Its popular offerings include:
Lip and Cheek Tint
Shampoo Bars
Sunsticks
Hydrating Sunscreens
The brand currently offers over 250 SKUs spanning six categories, catering to eco-conscious consumers who value sustainability.
Nykaa’s financial performance further underscores its ability to support brand growth:
Q2 FY25 net profit rose 67% YoY to ₹13 crore, compared to ₹7.8 crore last year.
Consolidated revenue from operations grew 24% YoY to ₹1,875 crore, up from ₹1,507 crore in the same period.
EBITDA saw a 29% YoY increase, reaching ₹103.7 crore
Nykaa’s robust distribution platform and 360-degree marketing approach provide a competitive advantage for brands like Earth Rhythm to flourish in a crowded marketplace.
The clean beauty segment is poised for sustained growth as consumers increasingly prioritize eco-friendly, cruelty-free, and sustainable products. Nykaa’s strategic investments in this domain position it as a key player catering to evolving consumer preferences.
