Nykaa forms strategic partnership with Apparel Group for distribution in Gulf countries

7 Oct 2022 , 11:26 AM

On October 6, the largest lifestyle retail conglomerate in the Middle East, Apparel Group, and omnichannel beauty and fashion retailer Nykaa announced their strategic partnership in order to enter the Gulf Cooperation Council (GCC) market, which includes the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates (UAE).

The new omnichannel company will have a new brand name and initially focus on beauty brands. It will be registered in the Abu Dhabi Global Market, with FSN International (a fully owned subsidiary of FSN E-commerce Ventures, which operates Nykaa) holding a stake of 55% and Apparel holding the remaining 45%. Estimated completion of the transaction is March 31, 2023.

Falguni Nayar, the founder and CEO of Nykaa, declined to specify the precise amount of investment or revenue sharing plans at this time, but she emphasized that both the market and the potential for revenue development are what excite her.

The news was made shortly after Nykaa’s lock-in period ended in November, one year after the company was listed.

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