Former investment banker Falguni Nayar started Nykaa as an e-commerce marketplace in 2012. The startup is now getting ready for its IPO. If all goes well, Nykaa will be the first female-led Indian unicorn venturing into the public listing. The IPO includes fresh shares worth Rs525 Cr and the offer to sell the shares of current shareholders worth Rs 4.3 cr. According to the Bloomberg report, the initial records Nykaa submitted to SEBI show that the business is valued at more than $4 billion. Falguni Nayar and her family hold around half of the company’s shares. There is a possibility that the share value would cross 2 billion dollars.
Within the last nine years, the Mumbai-based startup got segregated into different sectors including the fashion division and home decor division. From mascara, makeup remover and velvety kohl Indian eyeliner and Mehandi, Nykaa offers more than 2500 brands. Falguni has picked the products in tune with the nature of Indian skin tones. Nykaa offers more than 1500 shades in makeup foundation and over 2500 shades in nail polish. Instead of visiting so many offline shops, Nykaa lets consumers see different options in one place.
Nykaa achieved unicorn status by accumulating Rs 66.64 cr from the current investor Steadview Capital. The investment put the startup at a value of 1.2 billion dollars. In 2021, it established tie-ups with international brands such as Estee Lauder and MAC Cosmetics. In the last financial year, the company acquired an income of Rs 24.5 Bn through websites, apps and its 70+ stores.
Moreover, it recently launched NykaaMan, an e-commerce platform for personal care products for men. The competition is tight in India’s 15 billion dollar beauty market. Nykaa’s strategy is to invest and excel in technology, marketing and product extension.
India is still a small market in the beauty market. However, it grows alongside the economy. According to Technopark, in India, the beauty market will grow 8% per year till 2025. Falguni chose the name Nykaa from a Sanskrit word that means heroine. In fact, she and her brand Nykaa are becoming the heroine of the Indian beauty market.
