Synopsis
Nykaa is negotiating to buy a majority stake in Deepika Padukone's skincare brand 82°E. This move aims to strengthen Nykaa's portfolio in a competitive market. 82°E has faced challenges with pricing and competition. Nykaa, a leading beauty retailer, is actively pursuing strategic acquisitions to grow its business. The Indian beauty market is experiencing rapid growth."The potential deal hinges on Nykaa's market leadership position, cumulative beauty customer base of 42 million and ability to build on repeat orders and scale, to help turn around the flagging 82°E," one of the executives said.
They didn't comment on the size of the expected deal.
Nykaa and 82°E didn't respond to queries.
82°E, which is expected to continue holding a minority stake, did not grow as expected, with steep prices of ₹2,500 for 50-ml jars on average, diffused positioning and stiff competition from digital-first brands. The direct-to-consumer (D2C) business, which was started by Padukone in late 2022 as a premium skincare label, saw revenue decline to ₹14.7 crore in FY25, down 30% from the year before, with a loss of ₹12.26 crore, regulatory filings showed.
Nykaa, which competes with Reliance Retail's Tira, Sephora and Shoppers' Stop Beauty, has been actively pursuing a House of Nykaa strategy by bolstering its portfolio through strategic acquisitions. Some of these include Nudge Wellness, Dot & Key skincare and clean beauty label Earth Rhythm. The retailer reported a 156% year-on-year increase in net profit to ₹68 crore for the quarter ended December 31, 2025, driven by strong demand and margin expansion, with consolidated revenue up 27% to ₹2,873 crore. The ecommerce and offline retailer added 11 new stores and expanded business to four new cities in the quarter, taking its overall count to 276 beauty stores, it said.
In contrast to 82°E, actress Katrina Kaif's makeup brand Kay Beauty, which operates as a joint venture with Nykaa, reported a revenue of ₹132.4 crore in FY25, up 50% year-on-year. Nykaa holds 51% of Kay Beauty, with the remaining stake held by Kaif and a minority investment by Matrix.
Most celebrity brands prefer to align with corporates for scale and profitability, instead of building challenging standalone businesses, as star power only enables trials, analysts said. Alia Bhatt sold a 51% stake in her sustainable kids and maternity wear brand, Ed-a-Mamma to Reliance Retail Ventures (RRVL) about three years after launch, while Virat Kohli partnered with sportswear firm Agilitas as investor and partner. Ranveer Singh is co-investor in SuperYou proteins and co-owns sexual health brand Bold Care.
A Nykaa-Redseer report estimated India to be the world's fastest-growing beauty and personal care (BPC) market, forecasting it to touch sales of $34 billion by 2028, up from $20 billion last year. The report said that within the beauty segment, ecommerce is the fastest growing, fuelled by easier access to global premium beauty labels, higher discretionary spending, aspirational demand from tier 2 and 3 cities and a younger consumer base.
