FSN E-Commerce Ventures, the parent company of Nykaa, has completed the acquisition of an additional 24.2 percent stake in clean beauty brand Earth Rhythm. The company confirmed in a stock exchange filing that all transaction documents were executed and the new equity shares were credited to its demat account. This step finalises a board-approved transaction and strengthens Nykaa's ownership position in the brand.
Completion Details
The September 5 filing confirms that Nykaa has secured the additional equity stake in Earth Rhythm, a business it already controlled as a majority-owned subsidiary. The transaction was authorised by the board on May 21, with a maximum cash consideration of Rs 9.4 crore. Although the final amount paid was not disclosed in the latest update, the completion clears the way for full operational control.
A Multi-Year Investment Path
Nykaa began its association with Earth Rhythm in 2022 by acquiring an 18.5 percent stake for Rs 41.65 crore as part of a Series A round. In August 2024, it invested up to Rs 44.5 crore through a combination of primary and secondary transactions, making Earth Rhythm a majority-owned subsidiary. The latest acquisition of 24.2 percent completes a staged ownership journey that spanned several years.
Strategic Rationale
Earth Rhythm positions itself as a clean beauty brand offering skincare, haircare, makeup, and bath products with sustainable formulations. Full ownership allows Nykaa to align product development, marketplace placement, store distribution, and marketing strategy without external shareholder friction. It also enables closer integration with Nykaa's wider portfolio of owned and acquired beauty labels.
Financial and Operating Context
Earth Rhythm's reported turnover declined from Rs 32.4 crore in FY2024 to Rs 23.75 crore in FY2026, according to disclosures referenced in the filing. This performance makes execution and recovery central to the value of the acquisition. At the same time, Nykaa's beauty business grew 27.3 percent year-on-year in the first quarter of FY27, suggesting the parent platform retains broader momentum.
Portfolio Expansion
Nykaa has been expanding its owned brand portfolio through labels such as Dot & Key, Kay Beauty, and Earth Rhythm, with the House of Nykaa portfolio recording a 49 percent year-on-year increase in annualised GMV run-rate in FY26. In August, the company also announced plans to acquire a 51 percent stake in premium dermocosmetic brand Aminu for Rs 32 crore. These moves reinforce a strategy of adding specialised labels that can benefit from Nykaa's distribution and consumer reach.
What Comes Next
The completion settles the ownership question and shifts attention to operating results rather than transaction paperwork. Nykaa can now focus on improving Earth Rhythm's product focus, customer retention, and contribution margins through its distribution network. Future financial disclosures will show whether the brand can stabilise revenue and convert platform access into repeat demand.
Nykaa's acquisition of the remaining stake in Earth Rhythm reflects a broader strategy of owning and scaling new-age beauty brands. The transaction gives the parent company greater control over a label that fits its clean beauty focus, but it also concentrates responsibility for the brand's performance. As Nykaa moves from deal completion to operational integration, the effectiveness of that execution will be the key measure of success.