Falguni Nayar Success Story (The Journey of Nykaa)
nykaa success story the jouney

The cosmetics market was worth $1.3 billion in FY2020, and it is estimated to rise at a double-digit CAGR of 16.39% through FY2026, reaching $2.89 billion.

This surprising growth in the cosmetic industry is due to the increasing demand for cosmetic products, principally from teenagers and young adults, and the rapid digitization of the industry, which is to the benefit of all.

Nykaa is a leading player in the cosmetics market, with a wide range of beauty, fashion and wellness products available to both physical and digital users. Nykaa is aiming to gain a broad name in the space of personal care.

In this article, we covered founders and team, business model, growth, future plans, and many more about Nykaa.

About Nykaa

Nykaa is an Indian beauty retail company that sells cosmetic commodities, personal care items, fashion products, and gadgets. It started as an e-commerce platform before expanding to various retail locations across the country.

The brand specializes in offering a wide collection of cosmetics, skincare, hair care, fragrance, bath and body, luxury products, and wellness products also for both men and women.

The platform, claiming to receive more than 1.5 million visitors per month from across India, facilities adequately prepared and priced branded products.

nykaa average unique visitor per year

Nowadays, Nykaa has three kinds of stores namely, Luxe, On Trend, and kiosks. Nykaa's  Luxe stores run in more premium and luxury brands such as Estee Lauder, Dior, Huda Beauty, and M.A.C Cosmetics, among others.

On the other hand, Nykaa On Trend items contain trending and fashionable brands.

Nykaa also offers their customers comprehensive content that contains product reviews, video beauty tips, and articles written by beauty experts. The Nykaa helpline is designed to help their customers to select products and services as per their customer's requirements.

The products which are available on Nykaa, are sourced directly from the manufacturing brand. Therefore, products are authentic, available for delivery, and ships their products all around the Indian subcontinent and to Nepal too.

The Origin of Nykaa

Nykaa was established by Falguni Nayar in the year 2012. Nykaa was started with just three employees and Falguni Nayar had limited knowledge of beauty products, the retail industry, and technology. Nykaa did not consider its price proposition.

The anomaly in the beauty product market gave Falguni Nair the initial impetus.

The market for beauty and cosmetic products in India was not at par with the scope of the products, as was the case in other countries such as France and Japan although the market demand was high.

But, products were not available in many places around the country, which led to the formation of Nykaa.

Initially, it started as an online corporation and gradually shifted to an omnichannel strategy. 

Gradually, Nykaa has become popular for its wide range of beauty and personal care products, and fashion items that the company makes available on its website and app.

Nykaa Founders

Falguni Nayar is the founder of Nykaa. Presently, Nykaa is the most trusted and biggest lifestyle and fashion brand in India. 

The Founder and CEO of Nykaa are known as the richest self-made woman in India and are listed in the 10th position among the richest self-made women in the world. Falguni Nayar's net worth is 300 crores USD in the year 2022.

Falguni Nayar did his graduation from Sydenham College of Commerce and Economics and an MBA in finance from the Indian Institute of Management Ahmedabad.

nykaa founder falguni nayar talked about nykaa on mint interview

Then she joined Ferguson & Co as a Manager, where she worked for over 8 years. After that, she joined Kotak Mahindra Capital Company, a leading investment bank in India.

Nayar initially headed Kotak Securities and later became the Managing Director of Kotak Investment Banking in December 2007.

She worked for Kotak Mahindra for about 18 years and then resigned to dedicatedly follow her entrepreneurial dream: Nykaa.com.

Falguni Nayar spent more than 25 years in the corporate sector and started her entrepreneurial journey at age 50.

Falguni Nayar is passionate about her business, has attention to detail, and involvement in every aspect of the company which made her such a great leader.

Nykaa Business Model

Nykaa is a direct-to-consumer product e-commerce brand. Nykaa relies on an inventory-based business model. In this model, the company purchases its products directly from the manufacturer, and then they are now sold to the consumer. 

This is in contrast to a marketplace model where third-party sellers list their products on the Nykaa platform.

This allows Nykaa to be more secure over its items, helping to avoid any counterfeit items finding their way onto the platform.

The inventory-based business model helps the company become profitable. 

Nykaa IPO

The Nykaa's IPO was opened on October 28, 2021, and closed on November 1, 2021, with a price band of Rs. 1085-1125 apiece for the maiden offer. Nykaa IPO was subscribed 82 times in 3 days. 

nykaa stock price now 1year

The bids attracted Nykaa shares worth about $32.53 billion. Nykaa shares are listed at a premium of nearly 80% and Nykaa was listed at Rs 2001, at a premium of 77.87% over its issue price of Rs 1125. Investors made huge profits after Nykaa's IPO.

Nykaa Growth Story

Nykaa is a Key e-commerce platform in India that features in sales of beauty, cosmetics, and fashion items on the Nykaa platform.

Currently, Nykaa has more than 17 million monthly active users and processes more than 1.5 million orders every month. Some of the border growth phases are following -

  1. Nykaa claims to have more than 15 million users.
  2. It has around 105 stores throughout India.
  3. Over 4000 brands are available through the company.
  4. Nykaa has almost 3.1 million SKUs available on its website, in its app, and in its stores.

During the lockdown period, Nykaa did face a tough time as a result Nykaa had a 70% drop in sales in April 2020. However, the company responded quickly and effectively listed all required items to be kept in stock and removed all other non-deliverable inventory.

After that, the company started expanding its physical stores using its hyperlocal delivery capabilities.

Nykaa has recovered quickly from the ill effects of the COVID-19 pandemic and has already recovered more than 90% of what it was during the pandemic at the end of 2020.

The unicorn cosmetics and beauty products company has seen a significant shift in consumer preferences towards core categories such as personal skin and hair care.

This has helped it grow faster than its competitors following the coronavirus outbreak. Moreover, the company's shift from an online model to an omnichannel retail model has also contributed a great deal to this. All this not only improves customer perception of the brand but also enables Nykaa to reach audiences that were previously unreachable.

nykaa quote by nihir parikh

As the corporation began to recover from the impact of the pandemic in October 2020, it created Nykd, an intimate apparel brand.

Nykaa had a dream debut with its IPO where the company's market cap crossed Rs 1 lakh crore. The company recorded 81.78 times its shares oversubscribed at the end of the IPO round on November 1, 2021.  Nykaa's valuation rose to around $13 billion at the time of its debut in the Indian market.

On November 10, 2021, Nykaa's parent company, FSN E-Commerce, saw a record increase in its share price on the stock market, resulting in a 96% return on the company's investor capital. Shares of FSN E-Commerce ended at INR 2,206.70 per share on BSE, up 96.15% from the issue price of INR 1,125. 

But they closed at INR 2,018 each, 96.26% higher than the listed price.  Nykaa CEO Falguni Nair's net worth rose to $6.5 billion after the brand's record listing, according to the Bloomberg Billionaires Index.

Nykaa's parent FSN E-Commerce Ventures Limited reported a sharp, 96% drop in profits, which resulted in its share price falling on November 15, 2021.  The decline in the company's profits was attributed to an increase in its marketing costs in the quarter before its initial public offering.

The company's net income for the third quarter ended September was Rs 1.2 crore, down from Rs 27 crore in the previous year. 

It said the company's sales rose roughly 47% as a result of a 92% increase in expenses.  The company's stock fell 5.2% on Nov. 16, down from about 7.3% in the previous trading.

Nykaa Funding

Nykaa's parent company FSN E-Commerce Ventures Ltd claimed it has raised around Rs 2,396 crore from anchor investors on October 27th, 2021 before coming to its IPO.

Fidelity Management & Research Company invested an undisclosed amount in Nykaa It late before November 2020.

The company, Nykaa joined the unicorn club through its fresh $13 million funding from existing backer Steadview Capital in April of 2020.

Some of the leading investors of the platform include Steadview Capital, TPG Growth, and Lighthouse Funds. 


Gradually, Nykaa has launched a range of new beauty and personal care products that also incorporate celebrity endorsements.

Apart from this, they have also included various new collections to include in their personal brand.

Nykaa hosts beauty and fashion content through Nykaa T.V. and its own youtube channel. The content includes beauty, cosmetics, and styling.

The company is planning to enter into the offline business also and expand its offline presence by opening 180 stores all over India by 2024. The company is aiming to invest 100 crores in the next 2-3 years to open stores in the top 100 cities.

The company has been focusing on delivering quality products and services to users at reasonable rates. The platform shows a great level of commitment toward expansion and gaining a more dominant position in the future.


Who is the founder of Nykaa?

Falguni Nayar is the founder of Nykaa.

Who are the competitors of Nykaa?

Some of the key competitors of Nykaa are:

Is Nykaa an Indian brand?

Yes, Nykaa is an Indian lifestyle retail brand of beauty, wellness, and fashion products with headquarters in Mumbai.

Who is Nykaa CEO?

Falguni Nayar is the Founder and CEO of Nykaa.

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