Nykaa CFO Arvind Agarwal resigns

Nykaa, one of India’s leading beauty and wellness e-commerce platforms, today announced the resignation of Chief Financial Officer Arvind Agarwal. Nykaa’s owner, FSN E-Commerce Ventures Ltd, announced this on November 22.

On November 25, Nykaa announced that Agarwal will be leaving the company to explore other ventures in the digital economy and start-up space.

The company is in the process of appointing a new Chief Financial Officer (CFO), according to the regulatory filing. Agarwal’s exit comes after over two years with Nykaa; he was originally brought on as CFO July 2020.

Agarwal said of his resignation-

“I wish Nykaa the very best for the growth path ahead and will always be a part of the Nykaa family.”

He further added-

“It has been great to be a part of the incredible Nykaa journey thus far. All my learning and experiences to date, have set me up for pursuing different personal growth opportunities in the digital economy and start-up space.”

Falguni Nayar, Nykaa founder and chairperson, was grateful for Agarwal’s role in the company’s success. “We do regret losing him,” she stated, “but we understand his personal aspirations and wish him all the best.”

Agarwal has been in the industry for over 20 years and counting. Before joining Nykaa, he was the FP&A Leader & Business Controller at Amazon India from August 2017 to June 2020. Prior to that, Agarwal spent 5 plus years with Vodafone India. He also has experience working for Tata Teleservices, Adani Port, and YOU Telecom.

As stated in the Nykaa’s draft red herring prospectus for their initial public offering last year, Agarwal held 1, 20,000 employee stock options. Furthermore, they added that in the financial year 2021 he was paid a total remuneration of Rs 19.58 million.

Agarwal’s resignation from Nykaa occurs after the company’s lock-in period ended on November 10, allowing promoters and investors to cash out of their pre-IPO securities. As much as 67 percent of Nykaa’s shareholding became liquid with the end of restrictions.

Since the expiration of the lock-in period, high net worth individuals such as Narotam S Sekhsaria and Mala Gaonkar, as well as PE/VC funds like Lighthouse India have sold some of their company holdings.

Since early November, Nykaa’s shares have been plummeting as the lock-in period for its IPO expired. For those unaware, during a lock-in period promoters and investors cannot sell their pre-IPO securities.

Investor selling tends to push stock prices down after a lock-in expires, as was the case with Nykaa. There have been multiple bulk deals since the end of the lock-up period.

96,89,240 Nykaa shares were sold last week by Lighthouse India Fund III at an average price of Rs 171 per share. On November 15th, Segantii India Mauritius sold 33,73,243 shares at an average price of Rs 199.

Nykaa’s shares ended at Rs 175.20 on the BSE on Tuesday, which was 4.55% lower than the previous day’s closing value.

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