Beauty brand Nykaa sues former top official for contract breach, poaching | Company News
Nykaa has not named Tata Digital in the petition.
According to the report, Nykaa alleged that he contacted former Nykaa employees, encouraging them to join Tata Cliq. Some of these employees have switched jobs over the past year.
Currently, Asthana heads Tata Cliq, the digital fashion business of the Tata Group. He was inducted into the company in July last year and has over 20 years of experience in the retail sector.
According to Asthana’s LinkedIn profile, he has previously worked with Future Group and Shoppers Stop, where he spent over 21 years. He was with Nykaa for more than three-and-a-half years, starting in November 2019.
In its lawsuit, Falguni Nayar-led Nykaa has sought a refund of approximately Rs 19 crore for employee stock options used by Asthana and an additional Rs 5 crore. On Wednesday, the Bombay High Court issued an interim order prohibiting Asthana from recruiting Nykaa executives for Tata Cliq.
Nykaa has not named Tata Digital in the petition.
Results of Nykaa and Tata Cliq
In the first quarter of the financial year 2024-25 (FY25), Nykaa’s consolidated gross merchandise value (GMV) increased by 25 per cent year-on-year to Rs 3,321 crore, driven by a 28 per cent rise in beauty sales and steady fashion performance, the company said. Its revenue from operations grew 23 per cent Y-o-Y to Rs 1,746 crore, and earnings before interest, taxes, depreciation, and amortisation (Ebitda) reached Rs 96 crore.
On the other hand, Tata Cliq generated a revenue of Rs 78.5 crore in FY23, according to Tata Sons’ annual report.
First Published: Sep 05 2024 | 9:15 AM IST
