Arvind Agarwal, CEO of Nykaa, resigns in 2022.
Bengaluru: FSN E-Commerce Investments Ltd 2022., the firm that owns the online retailer Nykaa for clothing and accessories, announced on Tuesday that its chief financial officer, Arvind Agarwal, had left the company.
The company announced in a statement with the stock markets that Arvind Agarwal, its Chief Financial Officer, would be departing the organization as of the end of business on November 25, 2022, to pursue other possibilities in the start-up and digital economy sectors. In July 2020, Agarwal switched from Amazon to Nykaa. The online beauty merchant platform has not yet appointed a replacement for Agarwal.
“Arvind deserves praise for his crucial role in Nykaa’s transformation into a listed and successful start-up. While we regret losing him, we are aware of his personal goals and wish him luck, said Nykaa founder and CEO Falguni Nayar as she left the building. Not all new economy companies have experienced CXO departures in recent weeks, including Nykaa.
This month is the third major departure of a senior executive from a leadership position, following Siddharth Jhawar, the former chairman of Intercity Legends service, and Rahul Ganjoo, the new initiatives head food delivery platform Zomato’s co-founder Mohit Gupta announced his resignation last week.
Agarwal’s departure coincides with a decline in Nykaa stock after the company’s pre-offer investors’ needed lock-in period ended on November 10. Promoters and investors are unable to sell any pre-IPO securities they own during the lock-in period. Up to 67% of Nykaa’s shares will be freed from lock-in restrictions.
Today’s closing price for Nykaa shares was $175.20, much less than the company’s listing price but marginally higher than the day’s low. Following the expiration of the lock-in period, several major shareholders, including American PE investment TPG Investment, Light India, and Segantii Kerala Mauritius, in many others, reduced their ownership of the e-retailer.
According to Arvind Agarwal, being a member of the fantastic Nykaa adventure has been amazing. My up to this point education and experiences have equipped me to explore a variety of opportunities for personal growth in the start-up & digital economy sectors. I’ve been a part of the Nykaa Family since the beginning, and I wish Nykaa every success as it continues to expand.
Falguni Nayar, Nykaa’s owner, and chairwoman remarked that Arvind “deserves credit for the important role he has undertaken in Nykaa’s evolution as a recognized and profitable start-up.”Even if we regret losing him, we know his separate goals and wish him luck. According to Nykaa, the company is currently recruiting a brand-new CFO and will notify the stock markets once the new CFO starts.
Agarwal is one of the critical managerial persons (KMP) that oversaw the company’s initial public offering. He joined Nykaa through Amazon in July 2020. Nykaa shares decreased 4.6% on Tuesday to settle at Rs 175 a share. In the September quarter, Nykaa reported a 344% year-over-year (YoY) increase in net profit to 52 million, while operating revenue increased by around 39% to 12,308 million.
Nayar launched Nykaa. The company has over 5,500 brands available in the fashion and cosmetics categories, and its website receives roughly a billion hits every month. The firm had a valuation of over $13 billion when it made its public market debut the other year. Its market value as of right now is just over $6.6 billion.
Agarwal has over 20 years of expertise, and from August 2017 to June 2020, he served to be the FP&A Director & Business Director at Amazon India. Previously, he spent more than five years working for Vodafone India. The seasoned professional had even worked for Tata Teleservices, YOU Telecom, and Adani Port.
According to Nykaa, till the date of the draft red herring brochure for the first public offering last year, Agarwal possessed 1 20,000 worker stock options. He received a total compensation of Rs 19.58 million for the fiscal year 2021, it continued.
Agarwal’s departure from Nykaa comes shortly after the company’s lock-in period, which had allowed investors and promoters to sell their pre-IPO holdings, ended on November 10.
With the expiration of the restricted period, around 67 percent of Nykaa’s stock was released from lock-in. Since the lock-in period expired, high net-worth persons like Mala Gaonkar and Narotam S. Sekhsaria and PE/VC companies like Lighthouse Asia have sold a portion of their stakes in the company.
edited and proofread by nikita sharma