Nykaa CFO resigns to pursue other opportunities in tech space

Arvind Agarwal, the chief financial officer of omnichannel fashion and beauty retailer Nykaa has resigned to pursue other options in the technology space.

Nykaa said on Tuesday that it was in the process of appointing a new CFO.

“Arvind Agarwal, Chief Financial Officer of FSN E-Commerce Ventures Ltd (Nykaa’s parent entity) will be leaving the company, effective close of business hours on November 25, 2022, to pursue other opportunities in the digital economy and startup space,” the company said in a filing to the BSE.

Nykaa founder and chairperson Falguni Nayar credited Agarwal for his crucial role in the company’s emergence as a listed and profitable startup. “While we do regret losing him, we are conscious of his personal dreams, and wish him all the luck,” she said.

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

Food delivery platform Zomato has also seen top-level exits in recent days with cofounder Mohit Gupta, head of new initiatives Rahul Ganjoo and its intercity food delivery head Siddharth Jhawar announcing their exits.

Agarwal’s resignation comes barely a month after shares slipped below their issue price.

Tech stocks have faced a rout this year, with equity prices of multiple companies such as Zomato, Paytm, and Delhivery falling below their issue price.

Nykaa was among the best-performing ones as it had nearly doubled on listing day in November last year.

Investors have been selling Nykaa shares over rising competition and because of scepticism over the prospects of tech companies not only in India but around the world.

Nykaa shares fell 4.5% on Tuesday to close at Rs 175.20 on the BSE.

Nykaa earlier this month reported a 344% year-on-year jump in its September quarter net profit, at Rs 5.2 crore. Revenue from operations rose 39% YoY to Rs 1,230.8 crore.

In the beauty and personal care segment, Nykaa's Gross Merchandise Volume (GMV) grew 39% YoY to Rs 1,630 crore in the second quarter while the fashion business recorded a GMV growth of 43% YoY to Rs 599.1 crore.

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