Nykaa has not disclosed the details of the financials of the deal.
The transaction is subject to a variety of regulations, will be expected be completed within 60 days.
LBB was initially an local platform for discovery before moving into the realm of social commerce
The beauty e-commerce platform Nykaa on Friday (August 5) announced that it had was granted board approval to purchase the digital media platform Little Black Book (LBB) in a cash-only deal.
The company that was listed has not disclosed the terms of the deal’s financials. The transaction, which is subject to regulatory approvals, is anticipated to be completed in 60 days.
we are pleased to inform that Board of Directors of the Company at its meeting…has approved the acquisition of 100% of the dilute share capital of Lluminar Media Private Limited (known as ‘ Little Black Book ‘) Nykaa stated in an regulatory document.
The acquisition will allow Nykaa to benefit from LBB its brand discovery and delivery platform. This move will also let Nykaa utilize LBB’s creator networks to boost the retention of customers and engagement, as well as to expand operations. The move will also enhance the platform’s curation-driven services and its discovery-driven shopping experience.
We are thrilled by the synergies that we have with LBB as, like Nykaa they’ve been focussed on accelerating the discovery process and highlighting promising local brands on their channels from the beginning, a Nykaa spokesperson told me.
The company was founded in 2015 in 2015 by Suchita Salwan, Dhruv Matur, LBB began as a local discovery platform , and later moved into the realm of social commerce. It is a crossroads of commerce, content, and community, and provides items ranging from shoes to snacks. It is mostly focused on urban millennials and claims to have over 70 million users through its various channels.
In the regulator’s report, LBB had a turnover of INR 19.44 Cr during the financial year 2021-22. This was an increase of the INR 9.12 Cr during FY21.
The acquisition was announced in the exact same week that Nykaa released its results for the quarter. The unicorn that is listed has reported an increase of 42% over the previous year growth in its net profit consolidated up to INR 5 Crore as revenue increased 41% YoY, to the figure of INR 1,148.4 Cr for the initial quarter of the financial period 2022-23 (FY23).
In the segment of social commerce and content-to-commerce, LBB competes with the likes of Meesho, Good Glamm Group as well as many other companies.
Based on Statista Statista, India’s social commerce market is expected to be worth of $7 billion by 2022. This figure is predicted to increase to $84 Bn in 2030.