Indian E-commerce and cosmetics company Nykaa to acquire the local discovery and e-commerce platform Little Black Book (LBB).
Nykaa was in talk with the LBB to acquire their business for the past couple of months. The announcement by Nykaa is yet to be made. Dhruv Mathur’s company Little Black Book (LBB) is a dual-side facing marketplace for unique lifestyle products. The company deals with unique merchants at a local base. In September 2021, the company claimed to serve around 2.2 Crore customers across eight cities and had 10,000 merchants on its platform.
“The two companies have been in talks for the past couple of months and Nykaa has recently given a term sheet to LBB. The deal would strengthen Nykaa’s content game and complement its lifestyle and home decor categories,” said one of the sources.
The market giant Nykaa is acquiring noticeable stakes in the competitor companies in order to rule over the segment. The CEO of Nykaa, Falguni Nayar recently made investments in skincare products manufacturing companies, i.e Earth Rhythm, Nudge wellness and KICA.
Nykaa also added Pipa Bella and 20dresses.com to its portfolio. The company recently acquired a Kolkata-based skincare brand Dots&key just before there debut in the public market.
During the pandemic, several companies made fundraising to make business operations smoother. As per reports, LBB was unable to raise new funds for the new round. The pandemic had a strong, impact on Little Black Book’s business and this could be evident from the sharp fall in its sales during FY21. The company’s operating revenue dropped by 40.97% to Rs 8.63 crore in FY21 from Rs 14.62 crore in FY20. Meanwhile, it’s yet to file its annual financial report in FY22.