Nykaa; Although the phrase ‘beauty lies in the eyes of the beholder, the global beauty industry has never lost its attractiveness. Besides its steady growth, the beauty industry has always gained loyal customers over the years and generations. Long gone are those days when people had to visit cosmetic stores. Now people have the option of buying online cosmetics from online stores which has given them the flexibility to order items at any place and anytime.
Despite the Indian economy having sunk in recent months owing to the Covid-19 pandemic, there are still several online platforms that have continued to remain steady and provide good services amidst the lockdown.
One of this e-commerce beauty and wellness items is Nykaa, which is a platform that has become the leading option for all cosmetic lovers in India.
About Nykaa:
The company is a brand based in India that specializes in multi-beauty and personal care products. It had originally been set up as a sole e-commerce medium until it later began building up various retail outlets in many other urban cities across India.
The brand specializes in a large collection of cosmetics, skincare, haircare, and other wellness products for both men and women. The brand promotes price-banded products which have claimed to receive more than 1.5 million per month across India.
At present the company has its stores in three formats namely Luxe, On Trend, and Kiosks. Nykaa’s Luxe stores promote more premium and luxury brands such as Estee Lauder, and Huda Beauty M.A.C Cosmetics to name a few. Apart from women’s beauty, the platform also has a range of men grooming items.
Nykaa Founders:
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A graduate with MBA from IIM Ahmedabad, Falguni Nayar begins to work at Kotak Mahindra in investment banking after her graduation. She became the Managing director at Kotak in 2005.
She worked for Kotak Mahindra for about 18 years, during which she decided to move beyond the banking sector and experience in other sectors. She recognized the unexplored potentiality of the online beauty sector. Back then, there was a scarcity of accessible online brands and items which could be confidently trusted and purchased by the consumers, this is where she saw the opportunity for Nykaa.
Falguni being passionate about makeup and beauty items wished to change the opinion of Indian women on personal grooming. With the wish of developing something absolutely for her, she set up Nykaa in 2012.
The origin of Nykaa:
It was established in the year 2012. On the lookout for a favorable business opportunity in India Falguni Nayar came across a difference in the beauty items market in India which wasn’t up to the standards with the product’s scope in nations like France or Japan, despite having a high demand mainly because of the lack of availability of products.
This led to the establishment of the company alongside her husband Sanjay Nayar. The company started as an online corporation the beginning and then slowly shifted to the multichannel platform in the coming years.
Nykaa Business Model :
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What sets it apart from all its competitors is its inventory model. In this model, the products here are purchased through brands and distributors after which it is sold directly to the consumers. This is different from a marketplace model where the third-party sellers list the products. This gives Nykaa a secure grip on its items which will help them avoid any forged items which will find their way on the platform.
Nykaa’s recent growth:
Nykaa’s in-house brand  Nykaa Beauty has gone through into travel care as well as home necessities. From the day of its establishment in 2012 till now Nykaa has advanced a long way, playing a great role in the progress of the beauty industry.
The company at present has over 5 million monthly active users, it has 80 stores across India with over 500 brands and 130,000 products that are available via its app, website, and as well as stores. One important thing that has played an important role in the growth of the company is its shift from an online model to an omnichannel retail model.
Within its Nykaa Fashion label, the brand has recently proceeded into the intimate wear category through its brand Nykd. It has recently received the homegrown skincare platform Dot & Key Wellness on 22nd Oct 2021. The brand has also observed a shift by customers towards the categories that are essential which also include hair care items as well as personal skin care items.
Nykaa IPO:
Nykaa’s IPO was launched for subscription on 28th October-1st November and had fixed a price line of Rs 1,085-1,125 a piece for the first offer. Nykaa IPO received an amazing response from the investors once it was introduced for a subscription.
Nykaa Funding:
Before its IPO, FSN E-Commerce Ventures Ltd, on 27th October 2021 Nykaa’s parent company asserted that they have raised around Rs 2,396 from anchor investors. In late November 2020, a research company invested an undisclosed amount in the platform.
It has a distinct place in the unicorn club through its $13 million funding from existing backer Steadview Capital in April 0f 2020.
Also, some of the leading investors of Nykaa include Steadview Capital, TPG Growth, and Lighthouse Funds.
Conclusion:
Over time Nykaa has launched a wide range of new products that also includes celebrity endorsements. The brand also has a fresh collection of personal care products.
Nykaa has a wide range of splendid plans ahead to mark the beauty and fashion industry and has also been focusing to bring quality products and services to the users at suitable and affordable rates. It promises to gain and expand even further its dominant position in the future.
