Nykaa in Talks to Buy Majority Stake in Deepika Padukone's Skincare Brand 82°E

Why It Matters

The acquisition would give Nykaa a foothold in the high‑margin celebrity skincare segment and accelerate its consolidation strategy in India’s fast‑growing beauty market.

Key Takeaways

• Nykaa seeks majority stake in Deepika Padukone's 82°E brand.
• 82°E revenue fell 30% to $1.8M, loss $1.5M.
• Nykaa's net profit rose 156% to $8.2M in Q4 2025.
• Celebrity brands favor corporate partners for scale and profitability.
• India’s beauty market projected to reach $34B by 2028.

Pulse Analysis

Nykaa’s pursuit of a controlling interest in 82°E reflects a calculated push to deepen its premium skincare offering. The brand, launched in late 2022, struggled with steep pricing—about $30 per 50‑ml jar—and a 30% revenue drop to $1.8 million in FY25, posting a $1.5 million loss. By integrating 82°E, Nykaa can apply its robust logistics, digital marketing, and a 42‑million‑strong beauty consumer base to revive sales, while allowing Padukone to retain a minority share and brand visibility.

India’s beauty and personal‑care sector is on a rapid ascent, with a Redseer‑Nykaa report projecting market size to hit $34 billion by 2028, up from $20 billion this year. E‑commerce is the primary growth engine, driven by tier‑2 and tier‑3 city expansion and a youthful, aspirational shopper base. Nykaa’s recent quarterly results—net profit up 156% to $8.2 million and revenue climbing 27% to $346 million—underscore its ability to scale efficiently. The House of Nykaa strategy, already featuring acquisitions like Nudge Wellness and Earth Rhythm, positions the company as a one‑stop destination for both mass and luxury beauty, challenging rivals such as Reliance’s Tira and Sephora.

The move also highlights a broader trend: celebrity‑backed brands are gravitating toward corporate partnerships for operational expertise and profitability. While Kay Beauty, co‑owned with Katrina Kaif, generated $15.9 million in FY25, other star‑driven ventures—such as Alia Bhatt’s Ed‑a‑Mamma and Virat Kohli’s sportswear tie‑up—have similarly sought strategic investors. This pattern signals to investors that brand equity alone is insufficient; scalable infrastructure and distribution are now essential for sustainable growth in India’s beauty landscape.