Nykaa is a beauty and wellness focused e-commerce platform. Founded in 2012 by Falguni Nayar, the e-commerce company offers over 2,500 brands and over five lakh products on its site. Headquartered in Mumbai, Nykaa’s parent company, Nykaa E-retail, has two other platforms- Nykaa Fashion and Nykaa Man.
Nykaa Fashion is the segment focused on fashion with the sales of clothing, accessories, and footwear. It has over 100 physical stores situated across the country. Nykaa Man, started in 2018, is an e-commerce store dedicated to men’s grooming.
According to startup data intelligence platform TheKredible, since its inception the company has raised a total of Rs 887.87 crore in funding across nine rounds. The company raised over Rs 60 crore in its last Series E round in 2020. The round saw Fidelity Investments and Arvind Agarwal as its lead investors; it also saw the participation of Gaurav Sharma and Gopal Asthana, among others. Nykaa previously recorded a total of Rs 449.22 crore in FY19.
Nykaa’s investors Harindarpal Banga, Steadview Capital, and CPPI hold 6.41%, 3.24%, and 1.47% respectively of the company shares. While Sanjay Nayar Family Trust, director of the company, holds 22.26% shares, Falguni Nayar Family Trust has 21.94% shares.
On a quarterly basis, Nykaa scaled up 6% to Rs 1,507 crore during the Q2 of FY24 from Rs 1,421.8 crore in Q1 of the same fiscal year. Profits of the company also went up 44.4% to Rs 7.8 crore in Q2 as compared to Rs 5.4 crore during the first quarter of FY24.
In FY23, with a valuation of Rs 38,078 crore, the company recorded a revenue of Rs 5,174.30 crore, a stark increase as compared to its FY22 revenue of Rs 3,800.70 crore. It recorded an expense of Rs 5,135.80 crore out of which 55.8% was spent on cost of materials and 29.799% were other expenses in FY23. It saw a profit of Rs 20.96 crore the same year. In FY22, the company spent a majority, 99.29%, in operating revenue.
In FY23, Nykaa recorded a 183.84% asset turnover ratio and EBITDA margin of 5.53%, a slight increase as compared to FY22’s 5%.
Nykaa has made four acquisition deals till date with Twenty Dresses in 2019 being the first and Kica and Little Black Book in 2022. The company has also made three significant investments: an undisclosed amount in WOW Express and Ascenso, and Rs 41.65 crore in Earth Rhythm, according to TheKredible.
Among a few of Nykaa’s competitors are Mumbai-based Purplle and SUGAR Cosmetics, Noida-based Myglamm, and Gurgaon-based Mamaearth. Honasa Consumer Ltd, the parent firm of Mamaearth launched its Initial Public Offering on October 31.