Nykaa - Story of the Top Beauty Retail Platform of India

Purbalee Dutta Purbalee Dutta
Aug 3, 2021 7 min read
Nykaa - Story of the Top Beauty Retail Platform of India

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Nykaa.

Love using cosmetics right? Want to buy a few required products by today itself? "Mom, it's really very urgent for me!" Finally, mom says, "not today beta, any other day, please my angel!" And then you are like, "okay".

Girls, this is not going to happen anymore! You don't have to sit back quietly at your homes no more.

Nykaa is here now to just advice you and fulfil your wishes whenever you are unable to go out and shop. Read the Nykaa success story below, know more about your favourite company and get your hearts robbed for the lovely products available here at Nykaa.

Nykaa is looking for IPO by the end of this year or early 2022, and has already sanctioned the change of the company status to a public company limited by shares from a private company limited by shares. Furthermore, the holding company of Nykaa has also been renamed from FSN e-commerce Ventures Private Limited to FSN e-commerce Ventures Limited with only the filling of the Draft Red Herring Prospectus (DRHP) left, as of July 26, 2021. The brand is looking to raise around $539 million (Rs 4000 crores), as reported by the brand after filing the papers with SEBI on August 3, 2021.

Nykaa - Company Highlights

Startup Name Nykaa
Headquarters Mumbai, Maharashtra, India
Industry Online shopping; cosmetics
Founder Falguni Nayar
Founded 2012
Revenue $249.81 Million (FY2020)
Valuation $1.2 Billion (2020)
Parent Organization Kotak Mahindra Capital Company
Industry Ecommerce

Discover more about Nykaa Startup Story:

Nykaa - About
Nykaa - How Did It Start?
Nykaa - Founder And Team
Nykaa - Tagline, Slogan And Logo
Nykaa - Marketing Strategy
Nykaa - Business Model
Nykaa - Revenue Model
Nykaa - Funding And Investors
Nykaa - Growth
Nykaa - Future Plans
Nykaa - FAQs

Nykaa - About

Nykaa is a beauty retail company that sells cosmetic commodities both online and offline. It serves the customers of India and Nepal with a wide range of wellness and beauty products. The brand name 'Nykaa' is derived from the Sanskrit word 'nayaka', which means 'one in the spotlight'.

Nykaa - How Did It Start?

The company started its journey in the year 2012. It initially started as an online corporation. But eventually, it switched itself into an omnichannel strategy in its latter years. Based out of Mumbai, Nykaa is well-known for its popular eCommerce platform. Besides, it also handles around 76 stores by now in India.

Women usually work a lot, starting from dawn and ending to dusk. So, personal care is essential. This is why this company started years ago aiming towards making all simple women extraordinary in every aspect.

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Nykaa - Founder And Team

Falguni Nayar, CEO & Founder, Nykaa.com

Falguni Nayar is the founder of the team Nykaa, which is presently one of India's biggest lifestyle and fashion portal. She served for 20 long years as a venture investor and merchant with Kotak Mahindra Bank. Later, she resigned and announced her departure publicly to pursue her dream. She created Nykaa and it started creating history right from the beginning and hasn't stopped yet. She is a big example for the entire world that her age is just a number in case of entrepreneurship.

Nykaa Growth story

The company's tagline is 'Your Beauty, Our Passion'. There was a partnership between Nykaa and Peanut Butter where there was another slogan by their side, which is 'Beauty Anytime, Anywhere'.

"Company strives to curate products that suits consumer's fascination, says Falguni Nayar, CEO and Founder, Nykaa."

The brand colour was very carefully chosen because the brand targets the ladies and the colour red and pink would perfectly reflect a modern girl's flaws and vibrancy.

Nykaa logo
Nykaa logo

Nykaa - Marketing Strategy

This company's marketing strategy is the promotion of its beauty and wellness products. They advertise their products online on various pages, websites, blogs etc. In order to gain success, they collaborated with Femina to host the 'Nykaa.com' which is now very popular and known by all for its proper working and dealing with its consumers. Their marketing and content strategy is already built over the last seven years and it's strong indeed. Therefore it's one of the largest omnichannel beauty players in the nation.

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Nykaa - Business Model

All the dads, husbands, boyfriends and lovely ladies knows 'Nykaa' by its name very well. Didn't you people ever think that how is it running? Who is the mastermind behind the game being played? Here you will find all the answers!

So, Nykaa basically deals with high-end products like Lakme, MAC etc., which is why the commission also gets elevated. As you all know, cosmetic products have got a really high margin. So, it is a profitable business. Besides, the company has taken the entire thing to a different level!

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Nykaa - Revenue Model

It uses digital marketing as a means to market their website. The average cart size of Nykaa is Rs.1250 - Rs.1550. Quite affordable, as you may say.

It allows its users to purchase cosmetics, skincare, haircare and fragrances. The revenue produced by operations was recorded at $249.81 million (FY20). The platform follows an inventory-led model and has got its own private model. Expenditure is increasing more than double of the financial year's. However, the Mumbai-based online platform almost turned out to be beneficial and profitable for itself as well as for its consumers.

Nykaa - Funding And Investors

Nykaa's valuation stands now at around $1.2 billion. The total funding amount is around $341.9 million.

Date Round Amount Investors
April 23, 2018 Series D $10.07 million -
May 14, 2018 Series D $22.83 million -
September 2018 $14.77 million Lighthouse India Fund III
April 2019 Series E $13.43 million TPG Growth
December 1, 2019 Secondary Market $30 million Steadview Capital
March 31, 2020 Series F $13.43 million Steadview Capital
May 8, 2020 Series F $9 million Steadview Capital
June 2, 2020 Series F $196 million Hero Group’s Sunil Kant Munjal
October 16, 2020 Secondary Market - -
November 26, 2020 Secondary Market - Fidelity Management & Research Company


Nykaa - Growth

In the year 2019, the company had a growth rate of 78%. The online BPC retailer's growth rate has considerably got decreased over the years. However, the company obtained funding of net worth 14 million, to compensate. The Mumbai-based company says publicly that it's the consumers who have helped the company to build its empire. It was a 12-year journey for them in 2018, when it said that growth came to them slowly, as they started building stores, which were around 35 then. all over India.

Nykaa - Future Plans

The company is aiming towards expanding its offline business. It wants to expand its offline evidence by opening 180 stores by 2024. Nykaa - the multi-brand beauty product company will expand its physical existence by opening more than 180+ stores all over India and also it holds a dream of growing its offline business more and more in the upcoming years.

Nykaa is looking for IPO by the end of this year or in early 2022. The company has already turned into a public company limited by shares on July 16, 2021, and is just one step away from getting its Draft Red Herring Prospectus (DRHP) filed, which is a matter of days from now, as reported on July 26, 2021.

Nykaa has filed papers with the Securities and Exchange Board of India (SEBI), and is looking forward to raising around $539 million (Rs 4000 crores) via its upcoming IPO, as reported on August 3, 2021.

Nykaa - FAQs

Who is the founder of Nykaa?

Falguni Nayar is the founder and owner of Nykaa.

Why is Nykaa so famous?

Nykaa is India's biggest lifestyle and fashion portal with 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?

  • Purplle
  • FabAlley
  • Fabindia
  • LimeRoad
  • Craftsvilla

Is Nykaa an Indian brand?

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

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