Nykaa batting for strong growth, optimistic about leading the future of Beauty and Fashion in India

Nykaa batting for strong growth, optimistic about leading the future of Beauty and Fashion in India

Bengaluru – June 14, 2024: Nykaa, India’s largest omnichannel beauty and fashion retailer, has unveiled its remarkable growth trajectory and ambitious future plans at the Annual Investor Day 2024. At the event, Nykaa’s senior management took the analyst and investor community on a journey of Nykaa’s robust present and plans for the future. With a relentless focus on innovation, customer-centric strategies, and expanding market reach, Nykaa continues to solidify its leadership position in the beauty and fashion industry.

Falguni Nayar, Executive Chairperson, Founder and CEO Nykaa said, “Nykaa’s success so far has been rooted in driving quality growth by foreseeing the potential in the lifestyle ecosystem and making future-forward investments. Our conviction and efforts in beauty over the last decade is now reflected in a market bound to become a 90 billion-dollar market over the next 15 years, with Nykaa continuing its industry-leading growth. The results of our more recent investments in Fashion and eB2B are reflected in the past year through the much improved profitability in both businesses. 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.”

Unprecedented Growth in Beauty and Personal Care:

According to research, the Indian beauty market which currently stands at USD 19 billion, is expected to accelerate by 5x, presenting a staggering 90 billion* opportunity to Nykaa. The BPC e-commerce market is expected to grow from 3 billion to 40 billion in 2037. As the share of upper & middle income households grows in India, the premium BPC market is expected to grow by 25% CAGR in the next 15 years.

Nykaa has successfully addressed the total addressable market (TAM) in beauty and personal care, emerging as India’s foremost beauty category creator and market builder. The company’s unique omnichannel model has played a pivotal role in this achievement. Looking ahead, the beauty business’s ambition is to grow at a compounded annual growth rate (CAGR) of mid-to-late 20s till FY28.

Nykaa’s dominance in beauty is reflected in its:

  • Beauty Online: As the largest online beauty and personal care player in India with 30%+ online market share, Nykaa’s growth strategy includes robust customer acquisition, increasing category width and depth, premiumization of purchasing behavior, and delivering exceptional on-ground experiences
  • Physical Retail: With 187 stores spread across 68 cities today, Nykaa is the largest specialty beauty retailer in the country and is gearing towards growing the store count 2x by 2027
  • Nykaa Global Store has grown 5x over the last 4 years, witnessing a 50% CAGR, now comprising of 39 global brands
  • Content and media powerhouse & category builder, FY24 witnessed IPs such as Nykaaland, Nykaa Wali Shaadi, and Nykaa CSMS
  • India’s leading beauty focused digital Ad Platform, over 3 bn impressions served on the app every month
  • eB2B distribution: Superstore is transforming the traditional distribution model, democratizing access for underserved retailers, now serving ~2 Lakh retailers across 1000 cities. The business has seen orders grow by 71% in FY24 and witnessed a contribution margin improvement of over 900 bps & an EBITDA margin expansion of ~2200 bps

Key metrics showcasing Nykaa Beauty’s substantial growth:

  • Omnichannel Revenue: Surpassing $1 billion GMV, with a 39% CAGR over the past five years
  • 150 Million+ Cumulative Orders serviced till date, highlighting tremendous reach
  • 1 Billion+ Visits Annually, demonstrating strong online engagement
  • 50X Annual Visits per Visitor, indicating high customer engagement
  • 25mn+ cumulative customer base reflecting high penetration
  • Key brand launches in FY24 include Fenty Beauty, Urban Decay, ColourPop, AHC, Dr Barbara Sturm

Nykaa Fashion to scale while driving profitability:

Nykaa Fashion over a short span of time has quickly become one of India’s leading fashion platforms, offering over 3,200 brands with a wide assortment of premium styles.

Nykaa Fashion has showcased spectacular growth, boasting a GMV of over $400 million in FY24. Within the year, the business expanded its EBITDA margin by over 600 bps. Building on this success, Nykaa Fashion aims to grow to 2.5x-3x over the next 3 years and aspires to become EBITDA positive in the near future.

Nykaa’s fashion segment continues to thrive with impressive figures:

  • Nykaa Fashion has a 20% market share in the Women’s online premium market
  • 2x Average Order Value and 2x Annual Consumption Value vs. Industry averages
  • 6 Million+ Premium Cumulative Customer Base: Reflecting strong market penetration
  • 7 Million Orders in FY24: Marking significant growth in customer transactions, a 44% CAGR growth over FY21
  • International Icons in India: Nykaa Fashion has deepened its offerings through partnerships with global companies such as Revolve & more recently, Footlocker, strengthening its position as a destination for premium assortment

Consumer Brands business:

Nykaa’s consumer brands business has scaled rapidly over the last four years, witnessing 47% CAGR in the beauty consumer brands GMV and 112% CAGR in the fashion consumer brands GMV over FY21-24. The portfolio in beauty and fashion offers 14 and 13 brands respectively across categories such as makeup, skincare, personal care, fragrances, ayurveda in Beauty and lingerie, western wear, ethnic wear and accessories in Fashion.

Two of the fastest growing consumer brands of Nykaa, Dot & Key and Nykd by Nykaa offer differentiated solutions and have carved a niche for themselves in the beauty and lingerie market respectively. Dot & Key has achieved Annualised GMV run rate of INR ~600 cr. in Q4 FY24 and is one of the top brands on Nykaa.com. The brand has been profitable since January 2023 owing to meticulous product formulations, trials and commitment to technology along with R&D.

Nykd by Nykaa which boasts of a consumer base of 2 million shoppers, has achieved an annualized GMV run rate of the scale of INR 160+ cr. in less than 3 years. It has coveted the top spot on the Nykaa platforms.

Global Expansion into the GCC with Nysaa:

Nykaa’s ambition extends beyond Indian borders with the recent launch of Nysaa in the GCC (Gulf Cooperation Council) market, reflecting its vision for a global growth strategy. GCC represents a $30 Bn BPC market opportunity with a per capita consumption of $500+. Nysaa launched in March 2024 across ecommerce and physical retail, opening its 1st store in Dubai. Nysaa plans to open 5 new stores this year and become 70 stores strong in 5 years.


InclusivitySustainability and Community are at the heart of Nykaa’s operations, fostering trust with customers and stakeholders. Inclusivity is also a key value, reflected in diverse product offerings and a supportive workplace culture. Nykaa’s dedication to sustainability is evident in its curation of ‘Conscious at Nykaa’, its use of 80% sustainable packaging, and its waste management efforts that have led to 400 tonnes of plastic being recycled.

Nykaa has co-created programs that provide holistic education, upskilling, and livelihood opportunities. With world-renowned academic institutions like IIM-A, Nykaa is making concerted efforts to develop consumer technology research solutions. Other CSR programs focus on supporting education, including STEM with American Indian Foundation (AIF), vocational training to empower underprivileged women with Labournet and providing healthcare in underserved communities. Through various initiatives, Nykaa has enabled the economic and social empowerment of women, helping them achieve financial independence and pathways to entrepreneurship.



Nykaa leverages data and advanced ML/AI technologies to create highly personalized customer experiences and optimize ad selection, significantly benefiting brand partners. The technological advancements are enabling strategic partners and Nykaa’s consumer brands business to scale their online businesses using top-tier eCommerce and warehouse management tech stacks. At the event, Nykaa conducted a GenAI-powered demo, highlighting semantic search and AI-assisted training for retail stores.

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