 "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.
Key metrics
- GMV: Surpassed ₹11,800 cr in FY25, with a 5-year CAGR of 36%
- Customer base: 34 million+ cumulative customers served
- Premium beauty: 40%+ 5-year omnichannel CAGR in premium beauty