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Nykaa

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Nykaa
Company typePublic
IndustryConsumer goods
FoundedApril 2012; 12 years ago (2012-04)
FounderFalguni Nayar
Headquarters
Mumbai, Maharashtra
,
India
Area served
India
Key people
Falguni Nayar
(CEO)
Anchit Nayar
(CEO — E-commerce & Beauty)
Adwaita Nayar
(CEO — Fashion)[1]
Products
RevenueIncrease ₹6,386 crore (US$770 million) (FY24)[2]
Increase ₹40 crore (US$4.8 million) (FY24)[2]
OwnerNayar family (53.5%)[3]
Number of employees
2,000+ (2021)
Websitewww.nykaa.com

FSN E-Commerce Ventures Ltd, d/b/a Nykaa, is an Indian retail company, headquartered in Mumbai. It sells beauty, wellness and fashion products through its website, mobile app and over 100 physical stores.[4] In 2020, it became the first Indian unicorn startup headed by a woman.[5]

Nykaa sells products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an omnichannel model and began selling products apart from beauty. As of 2020, it retails over 2,000 brands and 200,000 products across its platforms.

History

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Logo used in the initial years.

In April 2012, Falguni Nayar, a former managing director at Kotak Mahindra Capital Company, founded Nykaa[6] as an ecommerce portal curating a range of beauty and wellness products.[7][8] The brand name Nykaa is derived from the Sanskrit word nayaka, meaning actress or "one in the spotlight".[9] The website was first launched around Diwali 2012, and was available commercially in 2013.[6]

In 2015, the company expanded from online-only to an omnichannel model and began selling fashion products.[10][11]

In 2018, Nykaa launched Nykaa PRO. It is a premium membership program that provides users special access to professional beauty products and offers on the Nykaa app.[12] In 2018, the company also launched an online beauty forum called Nykaa Network.[13]

In March 2020, Nykaa raised ₹100 crore (US$12 million) from Steadview Capital at a valuation of US$1.2 billion, making it a unicorn startup.[14][15][16][17] This was followed by another tranche of ₹67 crore (US$8.0 million) funding by Steadview in May 2020.[18]

In October 2020, the company launched Nykaa Man, India's first multi-brand ecommerce store for men's grooming.[19][20] The company expanded into fashion by launching Nykaa Design Studio, which was renamed to Nykaa Fashion.

In November 2020, global asset management firm Fidelity invested in the company through a secondary sale of shares from an existing equity investor.[21]

In December 2020, Nykaa Fashion launched its first store in Delhi, making the fashion business omnichannel.[22][23]

Nykaa opened its initial public offering (IPO) on 28 October 2021.[24] The IPO raised ₹5,352 crore (US$640 million) at a valuation of US$7.4 billion. Nykaa was publicly listed on the NSE and BSE on 10 November 2021, and its price rose by 89.2% on opening day, valuing the company at nearly US$13 billion.[25] Founder Falguni Nayar, who owned a 53.5% stake in the company, became India's wealthiest self-made female billionaire on the listing day.[26]

Operations and services

[edit]
Actress Janhvi Kapoor has been Nykaa's brand ambassador since 2018.[27]

Nykaa follows an inventory-based model with warehouses in Mumbai, New Delhi, Pune, Haryana, Kolkata and Bangalore.[28] In 2020, in addition to its primary ecommerce business, it has an offline presence via 76 brick-and-mortar stores across the country.[29] It claims to have over 200,000 products across 2,000 brands.[30][17][31]

It has three offline store formats called Nykaa Luxe, Nykaa On Trend and Nykaa beauty Kiosks. The Luxe format features international luxury beauty brands such as Huda Beauty, MAC, Dior, and Givenchy along with Nykaa Beauty, the in-house collection of beauty products.[32] The Nykaa On Trend format has products curated by category basis their popularity.[33] In India, Nykaa is the only retailer that sells international brands like e.l.f, Charlotte Tilbury, Tonymoly, Becca, Sigma, Limecrime, Dermalogica, and Murad[34][35] as well as national bestsellers like Soulflower,[36] Lakme, plum.

House of brands

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Nykaa has a series of in-house brands within beauty and fashion. Some of them include:

  • Nykaa House of Brands – Nykaa Naturals, Nykaa Cosmetics, Kay Beauty
  • Nykaa Fashion – Nykd by Nykaa, 20 Dresses, RSVP, Mondano, Likha,[37] Pipa Bella[38][39]

In 2015, Nykaa launched its collection of in-house beauty products via Nykaa Cosmetics and later expanded it across categories of Eyes, Nails, Face, Lips.[40][41] The Nykaa Naturals portfolio is a collection of skincare and personal care products.[42] In early 2019, the brand launched its Wanderlust Bath & Body collection, and later in the year introduced a beauty line with designer Masaba Gupta, Masaba by Nykaa.[43][44] The same year, it launched its first celebrity partnership brand, Kay Beauty, with actress Katrina Kaif.[45][46]

Acquisitions

[edit]

In May 2019, Nykaa acquired 20Dresses.com, a private women's styling platform.[47]

In 2021, Nykaa Fashion acquired the India fashion jewellery brand, Pipa Bella,[48] and the Indian skincare brand, Dot & Key.[49]

In 2022, Nykaa acquired an 18.51% stake in Indian skincare brand Earth Rhythm.[50] It then completed the 100% acquisition of lifestyle content platform Little Black Book (LBB).[51]

Content platforms

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Nykaa also hosts beauty and fashion content via Nykaa TV, its YouTube channel. It contains informational videos about beauty, cosmetics, and styling.[52] Some of its notable campaigns include #BreakTheHashtag (with Tapsee Pannu), #WhatMakesYourBeautiful (with acid attack survivor and activist Laxmi Agarwal), Beauty in Her Story (in collaboration with Netflix), web series Tinderella, Khoj (a Mother's Day film), and Rakshak (a Raksha Bandhan special film).[10][53][54]

Since 2018, it has been hosting an online community of beauty and fashion enthusiasts via its Nykaa Network. In 2020, it launched a web miniseries called The Beauty Bar. Nykaa also hosts Beauty Book, a beauty and fashion magazine.

Other activities

[edit]

Since 2015, Nykaa has hosted the ‘Nykaa Femina Beauty Awards’ in partnership with women's lifestyle magazine Femina (India).[55]

In 2019, Nykaa Fashion launched ‘The Power List’ in partnership with Vogue India.

Corporate social responsibility

[edit]

Nykaa extends social and financial help to causes such as education, health, women's rights and empowerment, rural development, and disaster management. Some of its notable CSR partnerships are with SPARSH India, CARE International Confederation, PRIDE, Milaap, Nanhi Kali, Make a Wish Foundation, Benefactory, Sneha, GiveIndia, and PM CARES Fund.[56][57][58]

Awards and Recognitions

[edit]

Criticism

[edit]

Security issues

[edit]

On 18 November 2019, an API flaw was detected in Nykaa Fashion's internal systems that allowed a potential attacker to log in to any user account if the attacker had access to the user's email ID.[63][64] Consequently, the company fixed the security vulnerability.[63]

Corporate governance

[edit]

In November 2022, Nykaa issued 5:1 bonus shares to coincide with the expiry date of pre-IPO shareholders' lock-in period. The bonus issue resulted in the company's corporate governance practices receiving heavy criticism, with questions raised over the timing and motive of the issuance along with concerns of market manipulation and tax avoidance.[65][66] Later that month, CFO Arvind Agarwal resigned from the company,[67] even as the Securities and Exchange Board of India began scrutinizing the allotment of bonus shares.[68]

In February 2023, defending the bonus share issuance, CEO Falguni Nayar, a former investment banker, claimed that the company had "assumed shareholders would be able to start trading the bonus shares within 4-5 days of the shareholder voting on the issue."[69]

See also

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References

[edit]
  1. ^ "Anchit And Adwaita Nayar: Grooming For Glory". Forbes India. Retrieved 6 May 2022.
  2. ^ a b "Nykaa Q4 results: Net profit jumps to Rs 9 crore, revenue up 28%". Moneycontrol. 22 May 2024. Retrieved 25 May 2024.
  3. ^ "Nykaa IPO: Alia Bhatt, Katrina Kaif earn 10X returns from investments". cnbctv18.com. 11 November 2021. Retrieved 13 November 2021.
  4. ^ "Nykaa plans to open 300 stores to drive offline growth: Falguni Nayar". The Economic Times.
  5. ^ "Falguni Nayar, Founder Of India's First Woman-Led Unicorn Nykaa: Profile". NDTV.com. 28 October 2021. Retrieved 5 November 2021.
  6. ^ a b "Get A Glimpse Into The Mind Of Falguni Nayar, The Woman Behind The Force That Is Nykaa". iDiva. 8 March 2017. Retrieved 14 November 2021.
  7. ^ Kapur, Mallika (24 March 2017). "Falguni Nayar: The beauty entrepreneur". Live Mint. Retrieved 2 April 2020.
  8. ^ "Shades in Beauty Space: Falguni Nayar". Economictimes.indiatimes.com. Retrieved 7 March 2013.
  9. ^ "Who are we | Nykaa". www.nykaa.com.
  10. ^ a b "Nykaa reveales its omni-channel content and guided selling strategy". ETBrandEquity.com.
  11. ^ Lall, Pavan (19 April 2019). "Nykaa bets big on fashion, offline stores with eye on Unicorn tag". Business Standard India – via Business Standard.
  12. ^ Kapani, Puneet (28 October 2020). "After Katrina Kaif, Alia Bhatt Bets on Nykaa". Entrepreneur. Retrieved 24 May 2021.
  13. ^ "Nykaa launches Nykaa Network to boost interactivity". FashionNetwork.com. Retrieved 17 November 2022.
  14. ^ Sai, Ishwar (1 April 2020). "Nykaa raises Rs 100 crore from existing investor Steadview Capital". Business Standard. Retrieved 1 April 2020.
  15. ^ "Max Ventures and Industries acquires 2% stake in Nykaa". The Times of India. 9 December 2016.
  16. ^ "Steadview funding values Nykaa at $1.2bn". The Times of India. 2 April 2020.
  17. ^ a b "Nykaa enters unicorn club with fresh Rs 100-crore funding". 2 April 2020.
  18. ^ Gooptu, Biswarup. "Steadview Capital invests Rs 67 crore more in Nykaa". The Economic Times.
  19. ^ Srinivasan, Supraja. "Nykaa joins party in men's grooming". The Economic Times. Retrieved 24 May 2021.
  20. ^ "Ahead Of Festive Season, Nykaa Offers Men's Fashion, Grooming Products". Inc42 Media. 5 October 2020. Retrieved 24 May 2021.
  21. ^ "Fidelity invests in beauty etailer Nykaa". The Economic Times.
  22. ^ "Nykaa Fashion starts offline expansion, first store to open in Delhi's Ambience Mall". www.businesstoday.in. 4 December 2020. Retrieved 24 May 2021.
  23. ^ IN, FashionNetwork com. "Nykaa Fashion goes offline with its first store in Delhi". FashionNetwork.com. Retrieved 24 May 2021.
  24. ^ Modak, Samie (22 October 2021). "Nykaa IPO to open on October 28; priced at Rs 1,085-1,125 apiece". Business Standard India. Retrieved 13 November 2021.
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  26. ^ "Nykaa founder Falguni Nayar is now India's wealthiest self-made female billionaire". Hindustan Times. 10 November 2021. Retrieved 13 November 2021.
  27. ^ Malvania, Urvi (12 September 2018). "Nykaa signs Janhvi Kapoor as brand endorser, move to step up the buzz". Business Standard India. Retrieved 9 November 2021.
  28. ^ "pollution control compliance". www.nykaa.com.
  29. ^ "Nykaa Fashion starts offline expansion, first store to open in Delhi's Ambience Mall". www.businesstoday.in. 4 December 2020.
  30. ^ Ganguly, Payal. "Nykaa decks up to woo Indian beauty market with more products and services". The Economic Times.
  31. ^ "Beauty startup Nykaa plans $3 billion IPO this year – ET Retail". ETRetail.com.
  32. ^ Dalal, Avanti (29 January 2021). "Everything you need to know about the new Nykaa Luxe store in Mumbai". Vogue India.
  33. ^ "Nykaa to expand offline presence". Deccanherald.com. 25 June 2017.
  34. ^ "Charlotte Tilbury launches in India with these bestsellers". Lifestyle Asia India. 19 November 2020.
  35. ^ "Meet today's beauty customer". Mintlounge. 13 February 2021.
  36. ^ NykaaFrontendTeam. "Soulflower: Buy Soulflower Products Online at Best Price in India". Nykaa. Retrieved 8 May 2023.
  37. ^ "Nykaa launches new category Nykd All Day – Featuring Athleisure, Leisure & Activewear exclusively on Nykaa Fashion". 15 April 2021.
  38. ^ "Nykaa Fashion acquires Pipa Bella to strengthen jewellery category". The Economic Times. Retrieved 24 May 2021.
  39. ^ Staff Writer (12 April 2021). "Nykaa Fashion acquires online jewellery retailer Pipa Bella". mint. Retrieved 24 May 2021.
  40. ^ "Nykaa expects private label revenue contribution to double in 2017–18". Livemint.com. 16 December 2016.
  41. ^ Verma, Shrutika (9 March 2016). "Nykaa looks to raise Rs 100 crore, expand private label offerings". Livemint.com. Retrieved 29 June 2018.
  42. ^ Bureau, Indiaretailing (3 February 2021). "Nykaa Naturals branches out into a new category, launches hair care range". {{cite web}}: |last= has generic name (help)
  43. ^ "Nykaa Beauty enters the essentials category". The New Indian Express. 7 July 2020.
  44. ^ "Masaba Gupta collaborates with Nykaa to launch fragrance collection". The New Indian Express. 20 June 2020.
  45. ^ Bhattacharya, Ananya (24 October 2019). "Nykaa was an obvious choice for Katrina Kaif over Amazon and Flipkart". Quartz India.
  46. ^ "Katrina Kaif finally reveals her much-awaited makeup line on Instagram". Vogue India. 16 October 2019.
  47. ^ "Exclusive: Beauty e-tailer Nykaa acquires women styling platform 20Dresses.com". Techcircle. 22 March 2019.
  48. ^ "Nykaa Fashion acquires jewellery brand Pipa Bella". cnbctv18.com. 12 April 2021. Retrieved 24 May 2021.
  49. ^ "nykaa: Nykaa buys skincare co Dot & Key | Bengaluru News - Times of India". The Times of India. TNN. 23 October 2021. Retrieved 23 May 2022.
  50. ^ "Nykaa acquires 18.51% stake in beauty brand Earth Rhythm for Rs 41.65 crore". Moneycontrol. 22 April 2022. Retrieved 22 April 2022.
  51. ^ Thathoo, Chetan (10 September 2022). "Nykaa Completes 100% Acquisition Of Digital Content Platform Little Black Book". Inc42 Media. Retrieved 19 December 2022.
  52. ^ "Nykaa Adopts 360-degree Marketing Strategy To Promote Products; But Influencers Play A Vital Role". Moneycontrol. 4 December 2020.
  53. ^ Bureau, Indiaretailing (14 May 2018). "Nykaa.com closes its series D investment round of Rs 165 crore". {{cite web}}: |last= has generic name (help)
  54. ^ "Nykaa and acid-attack survivor Laxmi Agarwal join hands for #WhatMakesYouBeautiful – Exchange4media". Indian Advertising Media & Marketing News – exchange4media.
  55. ^ "Nykaa and Femina host the Nykaa Femina Beauty Awards in Mumbai". Timesofindia.indiatimes.com.
  56. ^ "Nykaa CSR | Nykaa". www.nykaa.com.
  57. ^ Alves, Glynda. "Nykaa employees turn Covid warriors, raise Rs 1 cr towards PM CARES fund; Fortis Healthcare, Amazon follow suit". The Economic Times.
  58. ^ "GiveIndia Fundraisers: India's most trusted crowdfunding website". fundraisers.giveindia.org. Retrieved 24 May 2021.
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  60. ^ Dave, Sachin (12 April 2022). "Nykaa CEO Falguni Nayar wins EY Entrepreneur of the Year award". The Economic Times. ISSN 0013-0389. Retrieved 27 April 2024.
  61. ^ "DNA Women Achievers Awards 2023: Nykaa founder Falguni Nayar wins in FMCG category". DNA India. Retrieved 27 April 2024.
  62. ^ Arora, Sumit (17 April 2024). "World Economic Forum names Nykaa's Adwaita Nayar as a 2024 Young Global Leader". adda247. Retrieved 27 April 2024.
  63. ^ a b Kar, Sanghamitra. "Nykaa fixes a data security bug". Economic Times. Retrieved 3 December 2019.
  64. ^ "Flaws in code put customer data of four consumer internet platforms at risk". Live Mint. 17 November 2019. Retrieved 3 December 2019.
  65. ^ "Nykaa's bonus issue | What does it mean for the company's corporate governance record?". Moneycontrol. Retrieved 23 January 2023.
  66. ^ "Nykaa's bonus issue | Independent directors' failure is galling: Fraud-investigation expert". Moneycontrol. Retrieved 23 January 2023.
  67. ^ Rudra, Tapanjana (22 November 2022). "Nykaa's Chief Financial Officer Arvind Agarwal Resigns". Inc42 Media. Retrieved 23 January 2023.
  68. ^ "Nykaa, Easemytrip bonus shares' issue under Sebi scanner: Report". Business Today. 24 November 2022. Retrieved 23 January 2023.
  69. ^ "Nykaa chief Falguni Nayar stands by bonus issue, but admits error in trading strategy". Moneycontrol. Retrieved 14 February 2023.
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