Private equity manager Lighthouse Advisors’ affiliate Lighthouse India Fund III has invested Rs1.13bn ($15m) to acquire a minority stake through a secondary share sale in Indian online beauty retailer Nykaa.

The deal will see TVS Capital Funds exiting the online beauty retailer, following after the venture capital establishment sold part of its shares in 2016.

Through its TVS Shriram Growth Fund, TVS Capital Funds also invested around Rs300m ($4.16m) in Nykaa both in 2015 and 2016.

In April this year, Nykaa was able to raise a capital of Rs1.6bn ($22m) through primary and secondary share sales to existing investors.

“Nykaa has been a stellar bet for us, reflective of the entrepreneurial ability of a seasoned professional like Falguni Nayar.”

TVS Capital Funds is believed to have profited more than four times its original investment in the online beauty retailer, reported Economic Times citing market sources.

TVS Capital Funds founder Gopal Srinivasan told the publication: “Our second fund is coming to a close so it was a logical decision to exit at this stage for us. Nykaa has been a stellar bet for us, reflective of the entrepreneurial ability of a seasoned professional like Falguni Nayar.”

Nykaa is estimated to hold a third-share in the country’s online beauty space. Its net revenue grew more than twice to touch Rs5.7bn ($79m) in the financial year ending 2018 from Rs2.14bn ($29m) in 2017.

The latest two quarters are claimed to be earnings before interest, tax, depreciation and amortisation (EBITDA) positive and the company now expects its revenues to reach Rs10bn ($138m) in the fiscal year ending 2019.

Nykaa intends to expand its portfolio through some sole brand partnerships and support its offline presence to reach 90 stores by 2020.

It sells more than 1,000 brands on its platform and claims to have a customer repeat rate of more than 60%.