The cosmetic market is a 1.3 billion dollar industry in FY2020, and the growth is only expected to be double in the future. The amazing growth of the industry, along with rapid digitization, led its way to the establishment of the e-commerce giant, Nykaa.
Nykaa was established by Falguni Nayar in 2021, as a retail company that sells cosmetic commodities online. However, after its enormous growth Nykaa also offers offline stores all across India. The company also offers comprehensive content that includes product reviews, beauty how-to videos, expert written articles, and even an e-magazine.
Origin of Nykaa
Prior to the coming of Nykaa, there was a huge discrepancy in regard to the beauty market. Falguni Nayar, the founder of the company, noticed the inconsistencies in the market of beauty products, and thus came the idea of the beauty e-commerce. ‘Nykaa’, the name comes from the Sanskrit word ‘nayaka’ which means actress or ‘one in the spotlight’.
Nykaa initially started as an online corporation and eventually turned to be an omnichannel strategy. Nykaa has its base in Mumbai, and showcases a wide variety of beauty and cosmetic products for all genders. Other than beauty and cosmetics, Nykaa is also a retailer for intimate wear, garments, jewellery, home décor and more. Nykaa also sells luxury brands such as Estee Lauder, Dior, Chanel, Gucci to name a few.
Soon after its success, Nykaa also launched its line of in-house products, under the same name. The products include a wide range of products from cosmetic to skin care to bath and body products and more.
About the founder
Falguni Nayar was a student at IIM Ahmedabad, where she pursued her MBA in Finance. She then joined Kodak Mahindra Capital Company, as an investment banker. She worked in Kodak Mahindra for 18 years, amidst which she decided to pursue her entrepreneurial venture, and resigned from the bank. And today, she is India’s first self-made billionaire.
The beauty and cosmetic products market in India was not at par with that of other countries like France and South Korea, despite of having a high demand market. She had the vision to see India in par with these countries in terms of catering to the beauty industry. And she thus, fulfilled her desire to established the online beauty sector a reliable source for consumers to confidently purchase authentic products.
Being passionate about beauty herself, she wished Nykaa to be a one stop solution for a Indian woman’s selfcare need, and change their grooming experience for the better. Nykaa’s motto Your beauty, Our passion, truly justifies their claim.
Future of Nykaa
Nykaa claims to make 5 million per month as revenue across India, and the numbers are only expected to grow. During the pandemic, online sector grew exponentially, and Nykaa shined exceptionally, helping India with delivering essentials during the lockdown.
Along with online deliveries, Nykaa has 80 plus stores all across India, and they are planning on growing 180 stores all over India by the year 2024. And they are further planning on expanding internationally.
Nykaa came into the spotlight when it launched IPO for subscription during the October 28 to November 1 2021, and fixed a price band of Rs 1085-1125 apiece for maidan offer. Nykaa was offered 81.78 times over the 2.64 crore shares that were being offered. Nykaa had a dream debut in its IPO where the market cap of the company crossed Rs 1 lakh crore. The valuation of Nykaa surged almost to $13 billion in its Indian market debut. And the valuation of Nykaa is only expected to grow further in the coming years.
Falguni Nayar started Nykaa at the of 50 with no prior experience, and changed the fate of Indian beauty industry. The biggest take away from this journey is that, age is just a number, and you can turn your dreams and passion into a billion dollar industry when you have an entrepreneurial mindset. Falguni Nayar will be an inspiration for the generations to come.