New businesses now 1/3rd of Nykaa's GMV; FY23 net down 53%

"India has quickly become the most preferred destination for many global brands to meet their growth ambitions," says Falguni Nayar, chairperson, MD & CEO of Nykaa while professing her excitement for what the future holds for Nykaa and for a young and unstoppable India.

At the omnichannel retailer's 11th Annual General Meeting (AGM), it was disclosed that Nykaa witnessed a consolidated gross merchandise value (GMV) of more than ₹9,743 crores and net revenue of ₹5,143 crores. This represents a revenue growth of 36% over FY22 and a revenue growth of 191% over the pre-Covid year of FY20.

For the full fiscal of 2023, the fashion and beauty platform's net profit fell 53.1% YoY to ₹19.26 crore from ₹ 41.07 crore in FY22.

Attributing Nykaa's reach of more than 98% of the market to an unconventional technology first approach, Nayar says that the company was able to disrupt and democratise both demand and supply for the industry.

The retail conglomerate achieved a gross profit of over ₹2,278 crores and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) of ₹256 crores, with a healthy and improving EBITDA margin of 5%.

"Almost one-third of our GMV contribution in FY23 has come from our newer businesses, with all of them being built from scratch over the last 4 to 5 years. Our success here comes from diligently finding product-market fit, executing well with speed, and driving only sustainable growth," shares the CEO.

Furthermore, the per capita consumption in Nykaa's beauty and personal care (BPC) segment is $80, nearly five times the national average while India's per capita consumption for the BPC segment currently stands at $15 and is expected to reach $50 by 2030.

Focussing on fashion, India's per capita consumption stands at $54 and is expected to reach $160 by 2030, based on the trajectory of developed markets. The Nykaa customer today spends $130 on fashion.

This, Nayar predicts, will help the country become the third-largest consumer market by 2030.

"We have an unwavering commitment to our customers – we strive to be authentic, inclusive and transparent with them," emphasises Nayar.

The omnichannel brand also asserts its position as the largest beauty specialty retailer in India, both online and offline through unwavering focus on best practices combined with the art of retailing, and retail stores over 3,400 brands like L'Oreal, MAC, Lakme, Mamaearth, Minimalist, and more.

In addition to this, Nykaa, in a joint venture with Gulf Cooperation Council's (GCC) retail conglomerate Apparel Group, announced plans to open its first international store before the end of 2023, adding that GCC offers a large beauty and personal care (BPC) market size of over $30 billion and as a region is in its early-stage journey of e-commerce adoption.

Nayar believes that India has quickly become the most preferred destination for many global brands to meet their growth ambitions. "We are proud of our ability to execute and deliver on the plans we set out to achieve," she says.   

The beauty and fashion e-retailer’s consolidated net profit attributable to equity shareholders of parent fell 27% to ₹3.3 crore as compared to ₹4.55 crore in the same period a year ago, according to its Q1 FY24 results released on August 11.