Beauty and fashion e-commerce firm FSN E-commerce Ventures that operates the Nykaa brand plans to double its physical retail footprint by FY30, targeting over 500 beauty stores across more than 100 cities as part of its expansion strategy, according to management commentary in its FY25 annual report.
The company, which closed FY25 with 237 outlets in 79 cities, also said it will continue to invest in deepening its omnichannel presence while scaling its portfolio of owned brands.
In-house brands and premium beauty drive growth
“Our focus is to maintain leadership in premium beauty and continue building differentiated verticals in fashion and B2B,” Falguni Nayar, executive chairperson, managing director and chief executive, said. She added that the next phase of growth will be driven by technology-led innovation, faster delivery, and premiumisation.
Nykaa spent Rs 128 crore in capital expenditure in FY25 —up 11% year-on-year — primarily on store expansion, tech, and automation. The company noted that its peak capex phase was in FY22 and FY23, and that it now expects to improve return metrics. Return on capital employed rose to 11.3% in FY25, from 7.5% a year ago.
Nykaa’s beauty business contributed Rs 11,775 crore in gross merchandise value in FY25, a 30% year-on-year rise.
The segment also saw growing traction for Nykaa’s in-house brands such as Dot & Key, Nykaa Cosmetics, and Kay Beauty. Together, these brands generated Rs 1,695 crore in GMV in FY25 — up 55% year-on-year — and are now sold across 38,000+ offline points of sale in addition to the company’s app and website. This includes general trade and multi-brand retail outlets other than Nykaa’s exclusive retail outlets.
For its fashion vertical under Nykaa fashion, the firm plans to widen its scope in FY26 by scaling up its offerings in men’s, kids’, and home categories.
The company said these segments hold significant headroom for growth and will apply the same curation-led approach that has helped it build a loyal base in women’s fashion.
“So far, we have primarily been over-indexed on women’s fashion. While that will continue as the majority focus, this next year we will also accelerate the men’s, kids’ and home categories with the same ethos of curation,” said Adwaita Nayar, CEO of Nykaa Fashion.
Nykaa is also expanding rapid delivery with ‘Nykaa Now’, which offers two-hour shipping in seven major cities via a network of 40 dark stores. The company said faster fulfilment and personalisation—backed by AI tools—will remain a key investment area in FY26.
Gen Z, AI at core of Nykaa’s future: Falguni Nayar
Nykaa will continue to focus on strengthening its leadership in beauty and fashion while investing in technology, customer experience, and its portfolio of owned brands, according to Falguni Nayar, executive chairperson, managing director and chief executive officer of FSN E-Commerce Ventures.
In her letter to shareholders, Nayar described Nykaa as a portfolio of synergistic yet distinct businesses built with long-term vision and deep consumer insight.
She noted that India is entering a phase of aspirational consumption, led by rising incomes and a digitally native Gen Z population. “They expect brands to be inclusive, socially aware and constantly innovating. At Nykaa, we are building with and for Gen Z,” she said.
Nayar also highlighted that customer value increases significantly over time, with average spend rising 8.5x by the tenth year of a Nykaa shopper’s journey. “We see each customer not as a transaction, but as a long-term relationship that matures, evolves and deepens,” she said.
Nykaa has also embedded artificial intelligence across its value chain—from search and discovery to product development and customer service. “With a clear focus on the consumer and a strong foundation of governance, we are well-positioned to shape the next chapter of beauty and lifestyle retail in India,” Nayar said.