Growth of Nykaa After 10 Years of its Launch

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With a number of platforms related to cosmetics and fashion, Nykaa made a benchmark for becoming a unicorn startup, incorporated by a female. Falguni Nayar, the mastermind behind the incorporation of Nykaa, laid the foundation of this beauty brand in 2012 when she was around 50 years old.

Nykaa is an e-commerce beauty platform, with more than thousands of products and hundreds of brands that fit any of the skin types and tastes of the customer. Some of the brands that Nykaa collaborated with are not even known to the common public. Apart from cosmetics for women, products are available for men as well.

With the initial growth of the company, people started to love the brand, the products and the quality and after that, the company diversified its horizon from beauty products to the lifestyle and clothing sections. Nykaa collaborated with several brands to reach this level of popularity, some of the brands are Vero Moda, W, FabIndia, Na-kd, Biba, etc. 

How Did Nykaa Make a Difference?

At the time Nykaa was launched, most women went window shopping to buy cosmetic products, but Nykaa understood the needs of the market and launched the website so that one can order products online. This made people know about the online sources of ordering and Nykaa made a place in the market. 

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History of Nykaa

Falguni Nayar, the present CEO of the Nykaa, an Alumni of IIM Ahmedabad started this e-commerce platform. She extensively researched the skincare and cosmetics needed for the population of India and planned to build competitive brands like France and Japan. 

Falguni Nayar, along with her husband made this business a success, and now the twin daughters along with their son. She saw the incompetence of the Lifestyle and cosmetics market as an opportunity to see successful future growth if she builds a successful brand. Thus, Nykaa was created.

What Are the Various Genres Nykaa Has?

Nykaa has Beauty products, Skincare, Accessories, Electronic products, Health and wellness products, bath and body products, men's grooming products and fragrances that fulfil the customers' needs. All in all, Nykaa is a one-stop shop for any sort of products related to either men or women. 

Apart from all these beauty products Nykaa also has products in the domain of Clothing, Purses and Bags. Nykaa also publishes various articles for the skincare and beauty enthusiasts out there to know more about the products and clothing patterns celebrities prefer and the proper usage of beauty products.

Credit: Google images

Business Model Nykaa Uses

The Nykaa uses an inventory model, wherein the distribution is done between the consumers through the brands directly. There is no 3rd party involvement, it's just that Nykaa acts as a middleman between the brands and customers. The big brands that Nykaa collaborates with, are reliable to deliver.

Right now, Nykaa also has developed offline stores, for window shopping.

After the covid-era, Nykaa also decided to include handwashes, sanitisers, masks, thermometers and PPE Equipment, identifying the needs of the people around. 

Hurun Global Rich List 2022

This year, the founder of Nykaa stood up on the Hurun Global Rich list and became the first woman billionaire. She also surpassed the Biocon queen Kiran Mazumdar Shaw and made a mark on the entry list. This year 68 entries are there from India. India became the 3rd largest country to have 68 billionaires after the US and China. 

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How Has Nykaa Been Recent?

During the month of November 2021, Nykaa made entry into the financial markets by introducing its first-ever Initial Public offerings, for which Nykaa had been in the limelight of the investors. The initial price was Rs 1,085-1,125. 

The release of the IPO was a turning point in Nykaa’s history; it was listed under both NSE and BSE after the stocks were placed at 2206. After the registry of the stocks, Falguni Nayar’s net worth increased and reached Rs 38,700 crore. 

Apart from that, many investors of Nykaa include celebrities like Katrina Kaif and Alia Bhatt, also Jhanvi Kapoor is the brand ambassador of Nykaa. Thus, the success of Nykaa is still in progress as many ventures are upcoming and many celebrities are still underway to join Nykaa.

Written By: Khushbu Arora

Edited By: Nidhi Jha