New Delhi [India], October 7 (ANI): Beauty and fashion retailer Nykaa announced it has entered into an agreement to form a joint venture with Apparel Group, the largest lifestyle retail conglomerate in West Asia, to enter the Gulf Cooperation Council (GCC) market across the Kingdom of Bahrain, Kuwait, Sultanate of Oman, Qatar, Kingdom of Saudi Arabia and the UAE.

The JV will create a new omnichannel entity in West Asia, which will be focused on beauty brands. Nykaa will have 55 per cent stake and the balance will be held by Apparel.

For the time being, the announcement didn't reveal the exact investment size or any revenue-sharing plans. The deal is estimated to be closed by March 31, 2023.

"To us, the investment is not the main thing, the market, its potential and what we can do in those markets and the revenue potential is what we should get excited about," said Falguni Nayar, founder and chief executive officer of Nykaa during the announcement.

In India, Nykaa has 112 retail stores (as of June 30, 2022), catering to nearly 28,000 pincodes and offering over 4,500 brands across platforms.

With this pact, the beauty and fashion retailer aims to leverage Apparel's wide network of offline retail stores of about 2,000 across 14 countries that offer around 75 brands. Apparel Group, founded by Sima Ved in 1996, is an omnichannel retailer in West Asia based out of the UAE.

Apparel Group founderchairperson Sima Ved said, "Our omnichannel approach, which includes the first-ever physical store in the GCC region, has made us the partner of choice for a large plethora of brands. This alliance is going to be a new chapter in our expansion journey as we look forward to leveraging each other's strengths and offering a unique value proposition to our consumers in the GCC region." (ANI)