Online beauty and fashion platform Nykaa is negotiating to take a controlling interest in actress Deepika Padukone’s upscale skincare brand, 82°E. This strategy is part of Nykaa’s efforts to bolster its House of Nykaa portfolio in response to intensifying market competition, as indicated by a report from the Economic Times.
According to the report, the potential acquisition is currently being deliberated. Nykaa’s substantial scale, its leadership position in the market, and its extensive beauty customer base of 42 million are seen as crucial elements that could boost growth and foster repeat purchases for 82°E. This initiative also seeks to rejuvenate the brand, which has had difficulties in meeting its growth targets.
Launched in late 2022, 82°E operates as a direct-to-consumer skincare brand. If the deal goes through, it is anticipated that Deepika Padukone will continue with a minority stake. The brand has encountered obstacles due to its premium pricing, which averages around Rs 2,500 for 50 ml products, unclear market positioning, and tough competition from digital-first enterprises. According to regulatory filings, 82°E experienced a 30% decrease in revenue year-on-year, amounting to Rs 14.7 crore in FY25, with losses reported at Rs 12.26 crore.
Nykaa and Padukone already have an established partnership, with the actress assuming the role of global brand ambassador in September of the previous year. She spearheads promotional campaigns such as the Pink Friday Sale and Nykaaland.
This development occurs amidst a wave of consolidation within the direct-to-consumer sector, where larger entities are acquiring emerging brands to diversify their portfolios. Recent media reports suggest that French beauty giant L’Oréal is in advanced conversations to secure a majority stake in Innovist.
In February, pharmaceutical company USV obtained a 79% stake in Wellbeing Nutrition, while Marico acquired a 60% stake in plant-based protein startup Cosmix for a valuation of Rs 375 crore. Additional notable transactions include Marico purchasing 4700BC, ITC acquiring Yoga Bar, and Honasa, the parent company of Mamaearth, taking over Reginald Men. The trend reflects the consolidation witnessed last year, such as HUL’s acquisition of skincare brand Minimalist at a pre-money valuation of Rs 2,955 crore.