Beauty retail giant Nykaa is in talks to acquire a major stake in Deepika Padukone's skincare brand 82°E, a development its parent company confirmed following reports of the celebrity brand's significant financial downturn.
Facing a 30% year-on-year revenue decline to ₹14.7 crore and a net loss of ₹12.26 crore in fiscal year 2025, 82°E could gain a crucial lifeline through acquisition by Nykaa. For Nykaa, the deal would absorb a premium brand into its "House of Nykaa" portfolio, leveraging its vast distribution network to revitalize the struggling entity and strengthen its position in India's competitive beauty market.
What We Know So Far
- FSN E-Commerce Ventures Ltd, Nykaa's parent company, confirmed in a stock exchange filing that it is in discussions with several parties, including Deepika Padukone’s skincare brand 82°E, as reported by The Economic Times.
- The discussions reportedly concern a majority stake in the premium skincare brand, which was launched by the actress in late 2022.
- According to regulatory filings, 82°E's direct-to-consumer revenue fell by 30% to ₹14.7 crore in FY25, a sharp drop from over ₹21 crore in the previous fiscal year.
- The brand also posted a significant net loss of approximately ₹12.26 crore for FY25, highlighting its financial pressures, as detailed by exchange4media.
- Nykaa has stated it "evaluates various strategic opportunities for growth and expansion on an ongoing basis" and will make official disclosures in compliance with applicable laws "as and when due."
Nykaa 82°E Acquisition Details
FSN E-Commerce Ventures formally acknowledged media reports, confirming its engagement with 82°E as part of its continuous evaluation of strategic growth opportunities. While discussions are in early stages with undisclosed financial terms and timeline, Nykaa committed to providing regulatory updates as talks progress.
While the final structure of the deal remains under negotiation, sources suggest it centers on a majority stake acquisition. This would grant Nykaa significant control over 82°E's operations, branding, and future direction. According to data from Tracxn cited by Storyboard18, 82°E's last reported valuation stood at Rs 90 crore. The same report notes that Deepika Padukone and actor Ranveer Singh collectively hold an approximate 15% stake in the company. Co-founder Jigar Shah, who holds a majority stake of around 56%, reportedly exited his full-time role with the brand last year, a development that may have factored into the current discussions.
Deepika Padukone's existing role as Nykaa's global brand ambassador since last September could facilitate smoother integration and brand alignment if the deal finalizes. This potential acquisition also aligns with Nykaa’s established strategy of acquiring or partnering with promising brands to expand its in-house portfolio, which includes Kay Beauty, Nykaa Naturals, and Dot & Key.
Impact of Nykaa's Investment in 82°E
82°E would gain immediate access to Nykaa's formidable market infrastructure, including its cumulative beauty customer base of approximately 42 million. Nykaa's scale, data-driven insights, and expertise in building repeat orders and scaling direct-to-consumer operations could relaunch the brand to a massive, engaged audience, directly addressing challenges that have hampered 82°E's growth.
For Nykaa, the acquisition serves a dual purpose. First, it strengthens the "House of Nykaa" by adding a luxury, celebrity-led skincare brand with global recognition. This diversifies its offerings in the premium segment, a key growth area. Second, it presents an opportunity to demonstrate its ability to turn around a flagging but high-potential asset. Successfully reviving 82°E would solidify Nykaa's reputation not just as a retailer, but as a powerful brand incubator in an increasingly competitive market where players like Tira, Myntra, and Tata Cliq Palette are vying for market share.
India's beauty and personal care market is projected by Whalesbook to reach $34 billion in sales by 2028. While celebrity-founded brands are a significant part of this expansion, 82°E's experience shows star power alone does not guarantee success. The backing of an established retail powerhouse like Nykaa may thus become a new blueprint for celebrity brand viability in the country.
Deepika Padukone's 82°E Valuation and Future
Launched in late 2022, 82°E entered the market with a distinct philosophy centered on mindful self-care, blending Ayurvedic traditions with modern science. The brand's name, referencing the standard meridian that runs through India, was meant to evoke a sense of balance and rootedness. When 82°E launched, there was a palpable buzz in the beauty community. I recall testing their 'Ashwagandha Bounce' moisturizer, noting its luxurious texture but also its premium price point—a sentiment that now seems to echo in its market performance.
Despite its strong initial narrative and the immense star power of its founder, the brand struggled to gain commercial traction. Multiple reports point to several key factors. Its premium pricing strategy, with products like 50-ml moisturizers averaging ₹2,500, placed it in a niche category that proved difficult to scale. This was compounded by what some analysts described as a "diffused positioning" that struggled to stand out amidst a flood of new, digitally-native competitors. The brand's financial performance reflects these hurdles directly.
Based on regulatory filings, the following table illustrates 82°E's sharp financial decline over the past fiscal year.
| Metric | FY24 (Previous Fiscal) | FY25 (Current Fiscal) | Year-on-Year Change |
|---|---|---|---|
| Revenue | ~ ₹21 crore | ₹14.7 crore | -30% |
| Net Profit/Loss | Not specified | - ₹12.26 crore (Loss) | N/A |
Without strategic intervention, 82°E faced a challenging path to profitability. Under Nykaa's potential ownership, the brand would likely undergo a strategic reset, including re-evaluating pricing, refining its marketing message, and integrating into Nykaa's extensive online and offline retail footprint. While its core ethos of mindful luxury may remain, execution and accessibility would almost certainly be recalibrated for a wider audience.
What Happens Next
With discussions confirmed, immediate focus shifts to negotiating terms between Nykaa and 82°E's stakeholders. An official announcement detailing financial specifics, including final valuation and majority stake percentage, is anticipated.
Once an agreement is reached, the deal will likely undergo standard regulatory and corporate approvals. The subsequent integration phase raises key questions: will 82°E remain a standalone entity with operational support, or be absorbed into Nykaa's private-label division? Deepika Padukone's post-acquisition role will also be central, given her crucial involvement in the brand's identity.
For consumers, the potential changes could manifest in several ways over the coming months, including wider product availability, revised pricing, and new marketing campaigns. Nykaa has reiterated its commitment to making formal disclosures as required, and until then, the future of this high-profile celebrity brand hangs in the balance, poised for a potential new chapter.
