FSN E-Commerce Ventures, the parent of Nykaa, is in discussions to acquire a majority stake in actor Deepika Padukone's skincare brand 82°E, as the beauty retailer looks to deepen its "House of Nykaa" portfolio and scale newer labels. The potential deal, still under negotiation, comes as 82°E faces growth challenges in an increasingly crowded direct-to-consumer (D2C) beauty market. While financial details remain undisclosed, the move signals Nykaa's continued push to back and build premium beauty brands under its ecosystem.
Launched in 2022 as a premium skincare label, 82°E has struggled to gain traction. The brand reported a 30% year-on-year decline in revenue to Rs 14.7 crore in FY25, alongside a loss of Rs 12.26 crore, according to filings. Industry watchers point to a combination of premium pricing-around Rs 2,500 for a 50-ml product-diffused brand positioning, and rising competition from digital-first brands as key hurdles.
The company was last valued at about Rs 90 crore, with co-founder Jigar Shah previously holding a majority stake before stepping back from a full-time role. Padukone and Ranveer Singh together own a minority stake.
Nykaa's Playbook: Scale, Distribution, Repeat
For Nykaa, the potential acquisition fits squarely into its strategy of scaling brands through its distribution muscle and large consumer base-estimated at over 42 million beauty customers. The company has successfully executed similar playbooks before. Skincare brand Dot & Key has seen a sharp scale-up under Nykaa, while Kay Beauty, its joint venture with Katrina Kaif, reported 50% revenue growth to Rs 132.4 crore in FY25.
Nykaa is expected to leverage its omnichannel presence-spanning e-commerce and over 270 physical stores-to improve visibility, drive repeat purchases, and refine positioning for 82°E.
Celebrity Brands Seek Scale Partners
The move also reflects a broader trend of celebrity-led brands partnering with larger platforms to scale sustainably. While star power can drive initial trials, building a profitable standalone D2C brand remains capital-intensive and operationally complex. Across sectors, founders are increasingly opting for strategic partnerships-whether through stake sales or joint ventures-to unlock distribution, supply chain efficiencies, and marketing scale.
The talks come at a time when India's beauty and personal care market is expanding rapidly, with estimates pegging it to reach $34 billion by 2028, driven by rising discretionary spending and digital adoption. However, competition is intensifying, with players such as Reliance's Tira and global beauty retailers vying for market share.
ALSO READ: Dot And Key Is Driving Nykaa's Beauty Growth — Here's Why Macquarie Thinks That's A Risk
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