Nykaa parent FSN E-Commerce Ventures has completed the acquisition of an additional 24.2% stake in beauty and personal care brand Earth Rhythm for up to ₹9.4 crore.
FSN E-Commerce Ventures Ltd., the parent company of Nykaa, has completed the acquisition of an additional 24.2% stake in beauty and personal care brand Earth Rhythm, further increasing its ownership in the Gurugram-based company.
In a stock exchange filing dated September 5, FSN said it had completed the required transaction and procedural documents and that the corresponding equity shares had been credited to its demat account.
The latest transaction follows a call option exercised by Nykaa’s board in May 2026 to acquire 20,864 shares, representing approximately 24.17% of Earth Rhythm on a fully diluted basis. The acquisition was approved for a cash consideration of up to ₹9.4 crore. The completion filing did not disclose the final amount paid.
Nykaa Has Been Increasing Its Stake for Four Years
The latest acquisition is part of a broader investment strategy through which Nykaa has steadily increased its ownership of Earth Rhythm.
Nykaa first acquired a minority stake of around 18.5% in 2022, investing ₹41.65 crore in the beauty brand. Earth Rhythm was later brought further into the Nykaa portfolio through additional primary and secondary investments.
In August 2024, FSN’s board approved an investment of up to ₹44.5 crore to increase its stake and move towards making Earth Rhythm a subsidiary.
The first tranche of that investment, worth ₹39.5 crore, was completed in November 2024, taking Nykaa’s holding to 74.63% on a diluted basis and making Earth Rhythm a subsidiary.
Nykaa subsequently invested another ₹5 crore in June 2025, taking its converted holding to approximately 75.83%.
With the latest acquisition, Nykaa’s investor presentation identifies Earth Rhythm as one of its two successful beauty acquisitions alongside Dot & Key and shows the company’s stake increasing to roughly 76%.
What Is Earth Rhythm?
Earth Rhythm is a beauty and personal care company founded by Harini Sivakumar and headquartered in Gurugram.
The company sells products across categories including skincare, makeup, haircare and bath and body, with a focus on sustainable and natural beauty products. It sells through its own website as well as e-commerce channels.
Nykaa has positioned the brand around clean beauty and sustainable formulations, giving it a complementary role within the company’s broader portfolio of owned and acquired beauty brands.
The brand was incorporated in October 2020 and has built a multi-category product portfolio aimed at consumers looking for products positioned around efficacy, ingredients and sustainability.
Earth Rhythm’s Revenue Has Declined in Recent Years
Despite the continued investment, Earth Rhythm’s reported turnover has declined over the past three financial years.
According to Nykaa’s May 2026 disclosure, Earth Rhythm recorded revenue of ₹23.75 crore in FY2025-26, compared with ₹26.7 crore in FY2024-25 and ₹32.4 crore in FY2023-24.
| Financial year | Earth Rhythm turnover |
|---|---|
| FY2023-24 | ₹32.4 crore |
| FY2024-25 | ₹26.7 crore |
| FY2025-26 | ₹23.75 crore |
The latest investment therefore comes despite a smaller reported revenue base, suggesting Nykaa continues to see longer-term value in the brand’s category positioning and its ability to scale through Nykaa’s distribution and consumer ecosystem.
Nykaa Is Building a Larger House of Brands
Earth Rhythm is one part of Nykaa’s broader effort to build a portfolio of consumer brands alongside its core retail businesses.
In its FY2026 investor presentation, Nykaa highlighted 12 brands across beauty categories and different stages of growth, including acquired and in-house brands. The company specifically identified Earth Rhythm and Dot & Key as two successful acquisitions.
The strategy gives Nykaa greater control over product development and brand building while also allowing it to use its existing customer base, retail network and digital distribution to expand acquired businesses.
Nykaa said its beauty business served around 45 million customers in FY2026, while the company continued expanding both its physical store network and online assortment.
House of Nykaa Continues to Grow
The Earth Rhythm transaction comes as Nykaa’s own brand portfolio continues to expand.
The company’s FY2026 presentation reported ₹10,022 crore in consolidated revenue, up 26% year on year, while gross merchandise value reached ₹19,963 crore, up 28%. Net profit for the year stood at ₹204 crore, an increase of 183%.
Within its beauty business, Nykaa reported GMV growth of 27% in the fourth quarter of FY2026 and said the segment continued to deliver mid-20s growth.
The company has also continued adding international and domestic brands to its platform, alongside investments in its own brands and acquisitions.
Nykaa Targets Further Expansion in Beauty
The latest Earth Rhythm deal comes shortly after Nykaa’s board approved another acquisition in the beauty sector.
In August, FSN approved the acquisition of a 51% stake in premium skincare company Aminu for up to ₹32 crore, further expanding its presence in the premium skincare market.
Taken together, the transactions point to a strategy that extends beyond being a marketplace for beauty products. Nykaa is increasingly building a portfolio of brands that it can support through its retail stores, digital platform, marketing capabilities and distribution network.
For Earth Rhythm, the larger Nykaa stake could provide access to that ecosystem at a time when the brand is looking to strengthen its position across multiple beauty categories.
The latest acquisition also reinforces Nykaa’s longer-term strategy of owning and scaling selected consumer brands rather than relying entirely on third-party products sold through its platform.
