Latest news with #NykaaFashion
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Business Standard
26-06-2025
- Business
- Business Standard
Nykaa seeks four-fold growth in fashion business, ebitda-breakeven by FY26
FSN E-Commerce Ventures, which runs beauty products retailer Nykaa, aims to grow its fashion business three- to four-fold in five years, on the back of strong repeat business to improve margins. The company expects to have a steady-state profitability of 10 per cent ebitda margin over five years. It hopes Nykaa Fashion will be ebitda-breakeven as early as FY26. Ebitda, short for earnings before interest, taxes, depreciation and amortisation, was a negative 8.3 per cent last year. FSN E-Commerce told analysts about its plans on its Annual Investors Day on Thursday. It announced that House of Nykaa, the company's portfolio of brands, seeks a gross merchandise value (GMV) of Rs 6,000 crore by FY30, growing at a compounded annual growth rate (CAGR) of 30 per cent. The House of Nykaa crossed Rs 2,100 crore in GMV in FY25. Five brands crossed Rs 100 crore in GMV, including three at over Rs 200 crore. In FY25, Nykaa Fashion had a gross merchandise value (GMV) of Rs 3,800 crore. FSN E-Commerce announced the launch of NykaaNow, a service to fulfil orders in 30 to 120 minutes in seven cities. The company presently fulfils about 80 per cent of orders in 12 cities the same day or next. In 110 cities, as many as 70 per cent of orders are fulfilled the same day or next. The company said its total GMV has grown 42 per cent CAGR in five years, more than double the broader ecommerce market's CAGR of 18-20 per cent. It has more than 42 million customers and an omnichannel network of 237 stores. 'Over the last five years, our beauty business has scaled 5X and fashion has grown 20X, outpacing the broader ecommerce growth. Even in a cautious macro, we've continued to grow with discipline and purpose. Beauty remains a powerhouse, our B2B [business to business] play is scaling well, and we see recovering momentum in fashion,' said Falguni Nayar, executive chairperson, founder and chief executive officer of Nykaa. Nykaa said Gen Z customers comprise 44 per cent of spending on beauty, personal care, and cosmetics products. Global brands like CHANEL, Kérastase, YSL, NARS and Eucerin are expanding fast on Nykaa's platform, it said.
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Business Standard
26-06-2025
- Business
- Business Standard
Nykaa eyes 3-4x growth in fashion, targets EBITDA breakeven by FY26
FSN E-Commerce Ventures, the parent company of beauty and personal care brand Nykaa, aims to grow its fashion business—Nykaa Fashion—by 3–4x over the next five years, with a profitability target of 10 per cent EBITDA margins. Nykaa is betting on improved margins on the back of strong repeat business along with growth in its own brands. Nykaa is expecting the fashion business to be EBITDA breakeven by FY26. For FY25, the EBITDA was a negative 8.3 per cent. The company outlined its future focus to analysts at its Annual Investors Day. It also announced that House of Nykaa, its brand business, is targeting a GMV of Rs 6,000 crore by FY30, growing at a compounded annual growth rate of 30 per cent. Nykaa also announced the launch of NykaaNow. The firm is aiming for order fulfilment in 30–120 minutes and is available in seven cities. At present, about 80 per cent of orders in the top 12 cities are fulfilled the same day or next day, whereas across 110 cities, 70 per cent of orders are fulfilled the same day or next day. The company said that its total GMV has grown at a compound annual growth rate (CAGR) of 42 per cent over the past five years, more than double the broader e-commerce market CAGR of around 18–20 per cent. Its customer base now exceeds 42 million, and its omnichannel network has expanded to 237 stores. Falguni Nayar, executive chairperson, founder and chief executive officer, Nykaa, said: 'Over the last five years, our beauty business has scaled 5x and fashion has grown 20x, outpacing the broader ecommerce growth. Even in a cautious macro, we've continued to grow with discipline and purpose. Beauty remains a powerhouse, our B2B play is scaling well, and we see recovering momentum in fashion.' Nykaa also said that premiumisation is accelerating, with Gen Z now accounting for 44 per cent of BPC spend. Global brands like CHANEL, Kérastase, YSL, NARS and Eucerin are scaling fast on Nykaa's platform, with many in the top 100, said the company.
Fashion Network
11-06-2025
- Business
- Fashion Network
Nykaa Fashion could break even in four years
Beauty giant Nykaa 's fashion division could break even in four years if its current trend of improvement in its earnings before interest, tax, depreciation, and amortisation continues. While Nykaa Fashion remains a loss-making vertical, its executives are confident that its outlook is improving. Nykaa is charting a steady path towards profitability, posting a 40% rise in EBITDA to Rs 470 crore ($54.87 million) in the 2025 financial year, Apparel Resources India reported. The platform's gross merchandise value climbed 28% year-on-year to Rs 15,600 crore, with fashion and business to business platform Nykaa Superstore contributing increasingly to the business' overall momentum. 'Fashion is a massive opportunity- it's five times the size of the beauty market,' said Nykaa's co-founder and chief executive of its fashion division Adwaita Nayar, Apparel Resources India reported. The fashion vertical, now five years old, registered Rs 4,000 crore in gross merchandise value. 'We're currently operating at -8% EBITDA, but that's a 200 basis point improvement over the previous year," said Nayar. Offline retail contributes just 10% to GMV but plays a key role in premium and luxury sales, where it accounts for almost half. 'Actually, Nykaa has one of the highest sales per square foot in the world,' said Nayar. As Nykaa evolves into a multi-vertical player, its investments in in-house brands, retail tech, and personalisation through AI are central to its strategy for long-term growth.
Time of India
09-06-2025
- Business
- Time of India
'Quick commerce ops not hurting beauty biz, its aiding personal care'
As vertical ecommerce players gear up to fight the quick commerce battle, Nykaa is taking a cautious approach toward the segment. After piloting quick-commerce platform Nykaa Now in select pin codes across Mumbai, Delhi and Bengaluru last year, the beauty and fashion etailer says its core beauty category isn't designed for 10-minute deliveries and much of the traction is coming from personal care products . "Nearly 80% of what we sell is beauty and 20% is personal care. Personal care is what's really picking up on quick commerce," said Adwaita Nayar, cofounder of Nykaa and executive director and CEO of Nykaa Fashion. "Our beauty business' gross merchandise value (GMV) has grown at 30% year-on-year for the last four quarters. So I don't think we're seeing an impact of quick commerce. It's hard to know what growth would have looked like without it, but we're where we expected to be." Beauty is a discovery and inspiration-led category, where there is a lot of width and depth that needs to be serviced. The nature of quick commerce doesn't typically support that kind of assortment, Nayar told ET in an interview. She clarified that the Nykaa Now list is curated separately with a focus on personal care and gifting rather than mirroring its primary ecommerce catalogue. The cautious tone contrasts with how horizontal quick commerce platforms like Blinkit, Swiggy 's Instamart, and Zepto have aggressively expanded into newer categories such as electronics and fashion and beauty products. These companies have said beauty and personal care is fastest growing on their platforms. Along with the bigger players like Myntra, several vertical quick commerce startups have emerged, backed by venture capital including the likes of Slikk and Blip in the fashion and apparel space. She did acknowledge a broader shift in delivery expectations. "It's not about 10 minutes, but people's expectations for delivery speed globally is just going up," she said. Even as discretionary spending slows in parts of India's consumer internet market, Nykaa's beauty business continues to grow at a healthy pace, Nayar said. For the quarter ended March, FSN E-Commerce , Nykaa's parent company, posted a net profit of Rs 19 crore, almost double that reported in the year earlier. Operating revenue rose 23.6% year-on-year to Rs 2,016.7 crore, led by gains in beauty and personal care. "We are aware of the broader slowdown. We benchmark ourselves against a lot of these companies and understand what their growth rates look like. But so far, Nykaa hasn't seen a similar impact," Nayar said. "Based on our estimates, the online beauty and personal care market grew in the low 20s, while we grew in the high 20s." In contrast, the fashion vertical, which Nayar has led over the last few years, is growing at a slower pace, though it has outpaced overall industry growth at 12% year-on-year GMV growth in FY25. "Actually, if you compare the net sales value (of beauty and fashion) it is a more apples-to-apples metric. The split is 75:25 in GMV terms and 80:20 in NSV." Her goal is not to make fashion bigger than beauty, but to build a strong and profitable business with a clearly defined niche. Nayar said Nykaa Fashion's positioning remains distinct from fast-fashion players like Shein, which has re-entered India through Reliance Industries .
Economic Times
09-06-2025
- Business
- Economic Times
ID startups face data heat; Nykaa eases into qcomm
Happy Monday! Startups offering identity verification services are under the government's scanner. This and more in today's ETtech Morning Dispatch. Also in the letter: ■ Vibe coding needs more than vibes ■ Lenskart's IPO route■ Byju's in NCLAT ID please? MeitY verifies the verifiers The government is investigating startups offering identity verification services for potential unauthorised access to the Aadhaar, permanent account number (PAN) and goods and services tax (GST) databases. What's happened: The ministry of electronics and information technology (MeitY) is investigating firms, including Surepass, Digitap, Zoop, and Signzy, over concerns they may have bypassed authorised protocols to access confidential databases. In response, MeitY has blocked access to some of these companies' websites via telecom networks. Under the lens: Banks access the Aadhaar database under strict licence agreements to authenticate customers. The government is now probing how these services are offering verification services, and whether the routes they use are compliant. These platforms typically partner with financial institutions, consumer-facing startups and other entities to help them verify customers or businesses. Their services are used to detect fraud and assess clients for underwriting. Expert take: Some verification startups collect customer application forms from clients and then scrape databases to confirm identity. According to an industry insider, this data is often available through open websites, unsecured APIs or even the dark flagged a growing number of startups relying on such scraping techniques, potentially without proper authorisation. Yes, but: Companies such as Idfy, DigiO, Signzy and Datasutram are among the widely used in this space. However, only a few platforms have faced regulatory action so far, ET has learnt. Also Read: NPCI curbs unauthorised use of UPI IDs by fintech companies 'Quick commerce ops not hurting beauty biz, its aiding personal care' Adwaita Nayar, CEO, Nykaa Fashion As Blinkit, Zepto, and Instamart expand aggressively into beauty and personal care, Nykaa is taking a more slower, curated approach. Its pilot, Nykaa Now, is live in select areas of Mumbai, New Delhi, and Bengaluru, with a deliberate focus on personal care rather than its core beauty range. Driving the news: 'Nearly 80% of what we sell is beauty and 20% is personal care. Personal care is what's really picking up on quick commerce,' Adwaita Nayar, cofounder and CEO of Nykaa Fashion, told us in an interview. Why it matters: Beauty is among the most competitive ecommerce categories, and quick commerce platforms are seeing strong growth from impulse-driven beauty buys. Nykaa, however, is staying the course, pointing to its core category's reliance on depth, shade options, and browsing behaviour. 'People browse a lot of shades and products before they buy. The nature of quick commerce doesn't typically support that kind of assortment,' Nayar added. By the numbers: 30% year-on-year growth in Nykaa's beauty GMV over the past four quarters. Delivery time cut from four days to two. Same-day or next-day delivery is active in 100 cities. Nykaa Now orders are currently fulfilled via dark stores, with other models under trial. Also Read: Rapid fashion delivery gathers pace, but long-term viability in question Go deeper: Nykaa Now is designed as a separate merchandising layer, curated using demand signals and quick commerce-specific use cases. 'It's not about what Nykaa already sells, but what the customer really wants quickly. That's more likely to be personal care or gifting,' Nayar said. While Nykaa is actively improving fulfilment speeds platform-wide, Nayar remains sceptical of the 10-minute delivery rush. 'It's not about 10 minutes. But people's expectations for delivery speed globally are going up.' Also Read: Nykaa Q4 profit doubles to Rs 19 crore; revenue up 24% Why vibe coding needs more than vibes for enterprise-scale solutions In the age of artificial intelligence (AI), vibe coding is all the rage, with companies and tech celebrities touting it as a simple way to build websites and apps using just a prompt. But the founders ET spoke to are highlighting the flip side. What happened: Executives said the growing trend of vibe coding, where developers rely on AI prompts to generate code, is triggering increased scrutiny, more rigorous code reviews, and a heavier burden on senior engineers to guide younger colleagues. As AI takes over the mechanics of coding, the new wave of engineers entering the workforce often lacks core programming knowledge. This has led to subpar code that requires additional checks and rarely reaches production without significant rework. Also Read: AI 'vibe coding' startups burst onto scene with sky-high valuations Golden use case: Coding remains one of the most visible and impactful applications of AI. Around 30% of new code at Google and Microsoft is now AI-generated, and executives expect that share to grow over time.. 'There is an overdependence on LLMs, and this is leading to critical thinking issues,' said Nida Sahar, founder of bootstrapped cloud infrastructure platform Also Read: Vibe coding: A threat to software engineers? Other Top Stories By Our Reporters Piyush Bansal, CEO, Lenskart Lenskart becomes public limited company in preparation for IPO: Omnichannel eyewear brand Lenskart has become a public company in preparation for its public listing, changing its registered name from Lenskart Solutions Private Limited to Lenskart Solutions Limited through a special resolution passed by its shareholders. NCLAT rejects Byju's resolution professional's petition in Aakash shareholding row: The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Friday dismissed an appeal lodged by the resolution professional of Byju's parent, Think & Learn, against an interim order that mandated the maintenance of the status quo on the shareholding of Aakash Institute. Sundar Pichai answers who would be next Google CEO: Google chief executive Sundar Pichai, expects AI to play a critical role in the tech giant's future leadership at the Bloomberg Tech Conference. When asked whether a human or AI will run Google in the future, Pichai stated, 'I do think whoever is running it will have an extraordinary AI companion.' Computational thinking is key as AI reshapes software: Microsoft CEO Satya Nadella | In a recent conversation with tech YouTuber Sajjaad Khade, Nadella encouraged aspiring developers to concentrate on the fundamentals of software engineering, despite the increasing role of AI in coding. 'Just getting real fundamentals of software, if you're a software engineer, I think matters a lot,' Nadella said. 'To me, having the ability to think computationally is important.' Global Picks We Are Reading ■ Apple's struggles to update Siri lead to investor concerns over AI strategy (FT) ■ How Trump and Musk are still linked - despite falling out (BBC) ■ New apps help immigrants navigate Trump's deportation crackdown (Rest of World) Updated On Jun 09, 2025, 07:22 AM IST
