Nykaa -Top Beauty Retail Platform of India

Nykaa -Top Beauty Retail Platform of India
Nykaa -Top Beauty Retail Platform of India

The demand for beauty goods, especially from teens and young people, is driving the cosmetics industry's extraordinary rise. The industry's fast digitalization has accelerated its growth even more.

Nykaa becomes a major force in this thriving market, providing physical and virtual customers with a wide selection of beauty, fashion, and wellness products. In addition to its current standing, Nykaa's deliberate foray into the women's and men's innerwear markets with Nykd and GLOOT signifies its goal to leave a lasting impression in the personal care industry.

Nykaa is positioned for even greater success in the rapidly changing cosmetics industry because of the intersection of consumer trends and digital innovation.

Read all about Nykaa Founders and Team, Funding and Investors, Marketing Strategy, Business Model, Revenue Model, Growth, Acquisitions, Future Plans, and more.

Nykaa - Company Highlights

STARTUP NAME NYKAA
Headquarters Mumbai, Maharashtra, India
Sector Cosmetics, Beauty, Personal Care
Founder Falguni Nayar
Founded 2012
Website nykaa.com

Nykaa - About
Nykaa - Industry
Nykaa - Founder and Team
Nykaa - Startup Story
Nykaa - Mission And Vision
Nykaa - Name, Tagline and Logo
Nykaa - Business Model
Nykaa - Revenue Model
Nykaa - Challenges Faced
Nykaa - Funding and Investors
Nykaa - Investments
Nykaa - Acquisitions
Nykaa - IPO
Nykaa - Growth
Nykaa - Marketing Strategy
Nykaa - Advertisements and Social Media Campaigns
Nykaa - Awards and Achievements
Nykaa - Competitors
Nykaa - Future Plans

Nykaa - About

Nykaa is a beauty retail company that sells cosmetic commodities and fashion products, including men's innerwear, both online and offline. The company also offers comprehensive content that includes product reviews, beauty how-to videos, expert-written articles, and even an e-beauty magazine.

The Nykaa helpline is designed to help its customers choose products and services that are tailored to their needs. The products that beauty and wellness brand boasts of are sourced directly from the manufacturing brands and are therefore authentic, and are also available for delivery!

Nykaa - Industry

Based on an estimate by Statista, the Beauty & Personal Care market in India is expected to generate US $31.51 billion in revenue by 2024, indicating significant growth ahead. With a projected compound annual growth rate (CAGR) of 3.00% from 2024 to 2028, the market exhibits a positive trend.

The Personal Care area is the largest in this dynamic landscape, with an expected market volume of US $14.31 billion in 2024. This data highlights the strong potential and changing dynamics of the Beauty & Personal Care market in India and comes from Statista's extensive study analysis.


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Nykaa - Founder and Team

Nykaa was founded by Falguni Nayar (Co-Founder and CEO).

Falguni Nayar

Falguni Nayar, Co-Founder and CEO of Nykaa
Falguni Nayar, Co-Founder and CEO of Nykaa

Falguni Nayar, the Co-Founder and CEO of Nykaa, is a very successful women with an excellent background in both education and work. At Sydenham College, she pursued a Bachelor of Commerce (B.Com.) degree with an emphasis on accounting and business/management. After that, she continued her education at the esteemed Indian Institute of Management Ahmedabad, where she graduated with a Master of Business Administration (M.B.A.) and a General Finance concentration.

As a Manager at A F Ferguson & Co., Falguni began her professional career by sharing her knowledge. She held important positions at Kotak Securities as the Head of International Business and, subsequently, as the Director and Head of Institutional Equities Business. Her wealth of skills combined with her spirit of entrepreneurship resulted in the establishment of Nykaa in 2012.

Falguni Nayar is a notable example of someone who has achieved amazing success. She is regarded as the richest self-made woman in India, in 2022 at that her wealth grows by 345% and ranked fifth among the Top 10 Biggest Gainers List. Her remarkable rise in fortune is a testament to her outstanding business sense and market leadership in the cosmetic and beauty sectors.


Nykaa Growth Story

Nykaa has about 1,001-5,000 employees as per LinkedIn.

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Nykaa - Startup Story

Nykaa was established in 2012 by Falguni Nayar in reaction to the disparities she saw in the Indian market for cosmetics. Falguni Nayar found the gaps in product availability across the country, motivated by the huge demand for beauty and cosmetic products in India and inspired by the flourishing marketplaces in nations like France and Japan. These differences served as the impetus for the creation of Nykaa, which aims to fulfill unmet customer needs.

With just three workers, Falguni Nayar started Nykaa with little experience in the retail, beauty, or IT sectors. The business completed about 60 orders in its first few days of operation because it was steadfast in its belief that quality should come before quantity. Falguni Nayar said something that summed up her thinking perfectly: "We’d rather sell the proper shade of lipstick at full price than the wrong shade at half price."

Nykaa was first created as an online platform and then switched to an omnichannel approach. With its headquarters located in Mumbai, Nykaa has gained recognition for offering a wide variety of fashion, intimate apparel, and beauty and cosmetic products. Enhancing women's extraordinary in all facets of their lives is Nykaa's objective, which it pursues through its physical stores, app, and online platform.

Nykaa - Mission And Vision

The mission on the company's website states, "To create a world where our consumers have access to a finely curated, authentic assortment of products and services that delight and elevate the human spirit."

The vision on the company's website states, "Bring inspiration and joy to people, everywhere, everyday."

Nykaa Logo
Nykaa Logo

The brand name 'Nykaa' is derived from the word 'nayaka', which means 'one in the spotlight' in Sanskrit. The Nykaa parent company name is Fsn E-Commerce Ventures Ltd.

Nykaa - Business Model

Nykaa is a D2C consumer products eCommerce brand, that relies on an inventory-based business model. The company purchases its products directly from the manufacturers and keeps them in its designated warehouses located in New Delhi, Mumbai, and Bangalore. These products are sold either on the website of Nykaa or through its 3 offline store formats: Nykaa Luxe, Nykaa On Trend, and Nykaa Kiosks.

The inventory-led model of business of the company helps the company witness high-profit margins and has resulted in a profitable business. Besides, the company also ensures the authenticity of products and follows competitive pricing.

Nykaa experienced a major growth in 2015, moving from an online-only business model to an omnichannel strategy. This change allowed the business to sell things through physical stores as well as its website and apps. Enhancing consumer reach and engagement has been made possible by the implementation of the omnichannel approach.


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Nykaa - Revenue Model

Nykaa earns its revenues through the below-mentioned means.

Sale of products

The brand sells its own products and the products of its partnered brands, which is the primary source of revenue for the brand.

The banner advertisements of the company also help it bring in a lot of traffic, many of which turn into sales.

Discount income, income from commissions, and miscellaneous income are some other sources of revenue for the brand.

Nykaa - Challenges Faced

Being a relatively young player in the cosmetics industry, Nykaa has faced several difficulties in this fiercely competitive field. Prominent entities like Ajio and Myntra pose intense competition, contributing to the intricacy of Nykaa's market dynamics. It becomes essential to create a unique USP in the fashion industry in order to successfully navigate this fiercely competitive climate.

Nykaa experienced technical difficulties in its early stages, with its website routinely crashing as order volume increased. Overcoming these difficulties particularly the early system outages at 100 orders showcased Nykaa's tenacity and dedication to improving its platform for a flawless client experience.

Nykaa has become a dominant force in the Indian beauty e-commerce market, but it is important to recognize that competition is always changing. Rivals like as Ajio and Myntra are constantly launching new products, offering tempting promotions, and improving the general consumer experience. Nykaa faces a variety of obstacles as a result of its competitors' constant evolution, necessitating constant innovation and tactical adjustment.

Every rival, including Nykaa, has established a distinct market niche for itself in the cosmetics industry by catering to a range of client demands and preferences. Although this diversity makes Nykaa's problems more complex, it also fosters healthy competition that benefits customers. The competition creates a market with lots of options, affordable prices, and better services, which eventually improves the Indian consumer's entire experience shopping for beauty products.

Nykaa - Funding and Investors

Nykaa has raised a total of $215.4 million in 15 rounds of funding.

Here are the funding details:

Date Funding Round Amount Investors
Nov 22, 2022 Post-IPO Secondary Rs 336 crore Aditya Birla Sunlife Mutual Fund
Nov 10, 2022 Post-IPO Equity - Aberdeen Standard Investments
Nov 26, 2020 Secondary Market Fidelity
Oct 16, 2020 Secondary Market
Jun 2, 2020 Series H Rs 196 million Sunil Kant Munjal
May 8, 2020 Series F Rs 67 crore Steadview Capital
Mar 31, 2020 Series F Rs 100 crore Steadview Capital
Dec 1, 2019 Secondary Market $30 million Steadview Capital
Apr 1, 2019 Series E $ 14 million TPG Growth
Sep 5, 2018 Secondary Market Rs 113 crore Lighthouse Funds

Nykaa - Investments

Nykaa has made an investment in Earth Rhytm on April 22, 2022.

Nykaa - Acquisitions

Nykaa has acquired six companies to date.

Here are the details:

Date Company Name Amount
Aug 4, 2022 Little Black Book -
Apr 22, 2022 Nudge Wellness $471.71K
Apr 22, 2022 Kica $590.94K
Oct 22, 2021 Dot & Key Wellness -
Apr 12, 2021 Pipa.Bella -
Mar 22, 2019 20Dresses -

Nykaa - IPO

Nykaa opened its IPO on October 28, 2021, and it was not just an IPO but a real test for an Indian eCommerce player. It attracted 82X subscriptions in 3 days. The bids that Nykaa shares attracted were worth around $32.53 billion.

Nykaa shares are listed at a premium of nearly 80%. On the BSE, the shares of Nykaa were listed at Rs 2,001, at a premium of 77.87% over its issue price of Rs 1,125. On the other hand, the scrip was listed at Rs 2,018 on the NSE at a premium of 79.38%. The Nykaa shares were open for subscription from October 28 to November 1, 2021.

Nykaa - Growth

Some of the growth milestones of Nykaa are:

  • It has 1900+ brands with 1.2 lakh+ products as of January 2024.
  • Nykaa has occupied more than 5 million square feet of warehouse space as of January 2024.
  • Nykaa claims to have $21 million users as of November 2023.
  • It has a total of 141 store counts as of 2022.
  • It has 40 fulfillment centers in 18 cities as of 2022.
  • It has 105 stores across India as of 2022.
  • It has 23 warehouses across 11 Indian cities.

Financials

Nykaa Financials
Nykaa Financials
Nykaa Financials FY21 FY22 FY23
Operating Revenue Rs 2,441 crore Rs 3,744 crore Rs 5,144 crore
Total Expenses Rs 2,386 crore Rs 3,753 crore Rs 5,135 crore
Profit/Loss Profit of Rs 61.6 crore Profit of Rs 41.3 crore Profit of Rs 21 crore
Cash from Ops Surplus of Rs 133 crore Deficit of Rs 354 crore Deficit of Rs 140 crore
Nykaa Financials Quarterly Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23
Operating Revenue Rs 1,148 crore Rs 1,231 crore Rs 1,463 crore Rs 1,301 crore
Profit/Loss Profit of Rs 5 crore Profit of Rs 5.2 crore Profit of Rs 8.5 crore Profit of Rs 2.3 crore

Expenses

Nykaa total expenses rise from Rs 3,753 crore in FY22 to Rs 5,135 crore in FY23.

EBITDA

Nykaa Financials FY23
EBITDA Margin 5.53%
Expense/Rupee of ops revenue Rs 1
ROCE 6.45%

Nykaa - Marketing Strategy

Nykaa has stood as one of the most competent players in the beauty and fashion space due to its robust marketing strategy, which is carved with digital marketing at its core. The brand not only focuses on marketing in the Tier 1 cities but also pitches all the potential customers from the Tier 2, 3, and 4 cities.

Social Media Marketing

Nykaa has 4 social media accounts for the marketing of its in-house brand My Nykaa, Nykaa beauty for the promotion of its e-commerce platform, Nykaa fashion to promote its e-commerce apparel store, and Nykaa beauty book, which helps the audience with numerous beauty and makeup tips.

The company has its accounts on diverse social media platforms to extensively promote the brand on social media. The brand is also engaged in posting the content created by its influencers via its social media handles. Therefore, influencer marketing plays an important part in the promotion of Nykaa.

YouTube Marketing

Nykaa has a full-fledged YouTube marketing strategy. The brand refrains from focusing on selling its products via its YouTube channel but concentrates more on offering consumable content, including beauty, personal care tips, makeup hacks, and much more, to its target audiences.

Furthermore, the brand also runs YouTube ads from time to time to target its customers. Thus, the YouTube marketing of Nykaa is fueled with quality content that keeps the audience engaged and relevant ads.

Content Marketing

Nykaa relies majorly on its content marketing. The D2C beauty and fashion marketplace offer a variety of consumable content to the audience, which helps them convert into its customers.

Nykaa has its own blog, “Nykaa beauty book,” which the brand uses to publish blogs on beauty, makeup, and personal care. Furthermore, the brand is also engaged in creating video content like makeup tutorials, DIYs, and more.

Event Marketing

Event marketing is another important marketing strategy that Nykaa leverages to pitch the target customers at the right time and right place.

Nykaa has successfully sponsored the popular Femina Miss India event, one of the largest beauty events in India on a number of occasions, and is still tied to the same event.

Besides, Nykaa also sponsors numerous college fests and events like the Red Brick Summit, 2019 IIM Ahmedabad, and the Mumbai college fest, Mood Indigo.


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Nykaa - Advertisements and Social Media Campaigns

Nykaa Campaign

Nykaa's campaign, which consists of four powerful films, skillfully evokes strong feelings in viewers. Scripted by creative powerhouse The Script Room and directed by acclaimed ad filmmaker Prasoon Pandey, the campaign opens with "Kya Khoob Lagte Ho."

This ad skillfully weaves a tapestry of sincere emotions to depict the essence of relationships and daily living. The movies have a deep message: genuine praises have a special ability to soften hearts and for feelings to bloom. The campaign, which has its roots in authenticity, embraces the notion that, especially in the eyes of those closest to oneself, one's true, unguarded self is frequently the most beautiful one.

Nykaa - Awards and Achievements

Nykaa won several awards and achievements. Some of the prominents one are listed below:

Isidoro Alvarez Lifetime Achievement Medal (Spain, 2023): Falguni Nayar, the creator of Nykaa, was honored with the esteemed Isidoro Alvarez Lifetime Achievement Medal in Spain for her noteworthy contributions to the field.

Falguni Nayar was honored in the FMCG category of the 2023 DNA Women Achievers Awards, which is a testament to her extraordinary accomplishments as the creator of Nykaa Cosmetics.

Asia's Best Integrated Report Category (Bronze Award) at the 2023 Asia Integrated Reporting Awards (AIRA): At the 8th Asia Integrated Reporting Awards (AIRA), Nykaa was recognized for its proficiency in integrated reporting with a bronze award in the Asia's Best Integrated Report category.

Nykaa - Competitors

The top Nykaa competitors are:

Nykaa - Future Plans

Nykaa, a prominent participant in the e-commerce industry, is proactively molding its future through the expansion of its multichannel reach, with the objective of flawlessly merging customers' online and offline purchasing experiences. As part of its plan for the future, Nykaa is dedicated to improving its physical footprint even with the expenses that come with opening new locations.

Nykaa's commitment to fostering stronger client relationships and offering a variety of channels for customers to access its vast array of health, fashion, and beauty items is exemplified by this progressive approach. Setting lofty objectives, such as the intended opening of 180 stores throughout India by 2024 a substantial advancement in its brick-and-mortar expansion strategy the company hopes to build a strong future.

FAQs

Who is the founder of Nykaa?

Falguni Nayar is the founder of Nykaa.

Why is Nykaa so famous?

Nykaa is India's biggest lifestyle and fashion portal with a collection of cosmetics, skincare, haircare, fragrances, bath and body, personal care, and wellness products for both women and men.

Who are the competitors of Nykaa?

Some of the prominent competitors of Nykaa are:

  • Purplle
  • Myntra
  • Tata Cliq

Is Nykaa an Indian brand?

Yes, Nykaa is an Indian lifestyle retail brand of beauty, wellness, and fashion products with headquarters in Mumbai, Maharashtra, India.

How to sell on Nykaa?

Selling on Nykaa is easy. You just have to go to www.nykaa.com/sellonnykaa and then you need to go to fill up a form where you need to enter the Name of your company, Company Website, Pincode, Address, Product Categories, Brand Name, and other details, and then you would be ready to sell on Nykaa.

Who is Nykaa CEO?

Falguni Nayar is the Founder and CEO of Nykaa.

Where is the Nykaa headquarters?

Nykaa headquarters is in Mumbai, Maharashtra.

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