Nykaa’s newer businesses are performing well with these ventures contributing to almost one-third of the company’s GMV contribution in FY23 with all of them being built from scratch over the last 4 to 5 years. “Our success here comes from diligently finding product-market fit, executing well with speed, and driving only sustainable growth,” said the company’s Chairperson, Managing Director and Chief Executive Officer, Falguni Nayar, during the company’s 11th Annual General Meeting (AGM). Nykaa witnessed a consolidated GMV of over Rs 9,743 crore and a net revenue of Rs 5,143 crore, representing a revenue growth of 36 per cent over FY22 and a revenue growth of 191 per cent over the pre-covid year of FY20. The company achieved a gross profit of over Rs 2,278 crore and EBITDA of Rs 256 crore, with a healthy and improving EBITDA margin of 5 per cent.
Nykaa’s business spans across multiple digital platforms retailing over 6,200 brands to a customer base of 24 million and the company services customers in 98 per cent of the country’s pin codes. Nykaa has 150+ multi brand retail stores along with many EBOs and Store-in-store across third party outlets. Further, Falguni Nayar said that with strategic investments over years in technology, operational excellence, partnerships and people, Nykaa has complete faith in India’s consumption story that is set to play out over the coming years. She forecasted India’s growth as the world’s third largest consumer market by 2030.
“India’s entrepreneurial spirit, young and aspirational population makes it the best place to build consumer focused businesses and brands. I’m excited about what the future holds for Nykaa and for a young and unstoppable India,” Falguni Nayar said.
Nykaa’s Beauty and Personal Care Business
The beauty and personal care (BPC) segment in India is likely to register per capita consumption at $50 by 2030 from the current $15, said Falguni Nayar. Nykaa’s current per capita consumption is $80 in the BPC category, which is five times the national average. Nykaa’s BPC GMV stood at Rs 6,649 crore for FY23, up 33 per cent over the last year and when compared to pre-COVID, it stood at a strong 2.6 times of the FY20 GMV. Today, Nykaa retails over 3,400 brands from the biggest global brands such as L’Oreal, MAC & The Ordinary, Charlotte Tilbury to niche Korean Brands from Amore Pacific to homegrown beauty brands like Lakme, Mamaearth and Minimalist. “Nykaa has always believed in the power of omnichannel, and opened its first store, very early in its journey in 2014. As of FY23, Nykaa has expanded to 145 beauty specialty stores across different formats, including luxe stores, on-trend stores and kiosks across 60+ cities.
Nykaa’s Fashion Business
In terms of fashion, India’s per capita consumption stands at $54 and is expected to reach $160 by 2030, based on the trajectory of developed markets. Nykaa’s customer today spends $130 on fashion. The Fashion GMV stood at Rs 2,569 crore for FY23 and now constitutes over 26 per cent of Nykaa’s overall consolidated GMV. “This year, the number of brands available on the platform doubled from 1,500 brands to 2,850+ brands – across curation levers – National brands, Global Store, Hidden Gems, First in Fashion and the Responsible Collection,” Falguni Nayar said.
Nykaa’s Owned Brands
The BPC owned brands at Nykaa contribute to 11.9 per cent of the overall BPC GMV and fashion owned brands contribute 12.9 per cent to the overall fashion GMV. The company had launched Nykd, Nykaa Fashion’s lingerie brand just three years ago and it has built a national presence and is distributed through 4 EBOs, 900+ Point of Sales in GT/MT. Kay Beauty, the premium beauty brand launched in partnership with Katrina Kaif is present in 300+ offline stores and has witnessed year on year GMV growth, with a 2-year CAGR of 86 per cent and exceeding a GMV of Rs 127 crore in FY23. Nykd and 20 Dresses have now become sizable, crossing Rs 85 crore and Rs 150 crore in GMV sales for FY23 respectively.
Nykaa’s B2B Business
Superstore by Nykaa was launched in 2021 and has successfully onboarded 150,00 retailers in FY23. “Along with a growth in the number of retailers, Superstore witnessed an order growth of over 15 times in FY22. For FY23, over 84 per cent of the sales came from tier 2+ India,” the company said.
In terms of workforce at Nykaa, the company has been able to build a “diverse and inclusive workforce”. Women constitute 45 per cent of the employee base – with representation at all levels. Amongst the 188-person strong managerial leadership, 33 per cent are women, it said. Nykaa’s business, it further added, supports various segments and generates indirect employment across its logistics partners, brand partners, thousands of suppliers as well as hundreds of MSME vendors.