Omnichannel retailer Nykaa plans to scale up its fashion, beauty and consumer businesses over the next three years while increasing its presence in foreign markets, founder and CEO Falguni Nayar said during the company’s annual investor day on Friday. Nayar is also the executive chairperson of the company.
“Looking ahead, the beauty business’s ambition is to grow at a compounded annual growth rate of mid-to-late 20s till FY28,” Nayar said. “While Nykaa Fashion aims to grow to 2.5-3x over the next three years, aspiring to become Ebitda positive in the near future,” she added.
The firm says it has leveraged its omnichannel model to address the total addressable market in beauty and personal care (BPC). According to Nykaa, the BPC market is poised to become a $90-billion market over the next 15 years.
Nykaa’s BPC business saw revenue growth of 24% year-on-year (y-o-y) to Rs 1,389 crore in the March quarter. The gross merchandise value (GMV) of this segment increased 30% y-o-y to Rs 2,120 crore during the period. The fashion business revenue, on the other hand, grew 27% y-o-y to Rs 1,334 crore in Q4.
Nayar said recent investments in fashion and eB2B would help improve profitability of these segments in the future. “Both are expected to continue to expand margins rapidly in the next two to three years, leading to a positive improvement in Nykaa’s consolidated margins,” Nayar said.