Revved up! Nykaa scales its same, next-day deliveries to 110 cities

Nykaa has expanded its supply chain network to 44 warehouses across India by FY24, up from 18 in FY21

Beauty and fashion platform Nykaa has ramped up its same and next-day deliveries to 110 cities, aiming to get closer to the consumer by growing its warehouse network.

The company said that close to 60 per cent of all its order volume from these cities are being delivered within the next day.

Falguni Nayar, chairperson, MD and CEO of Nykaa during the company’s 12th Annual General Meeting said that this offering has been expanded over the last few months. The company plans to further roll out and deepen this proposition across the country.

“We have grown our warehouse network over the last three years by going closer to the consumer, to be able to drive speed and efficiency, aided by intelligent warehouse management technology. We are working towards making further strides towards delivery timelines by leveraging our supply chain network and technology to drive customer delight,” said Nayar in the letter to the shareholder in the Annual Report.

Nykaa has expanded its supply chain network to 44 warehouses across India by financial year 2024 (FY24), up from 18 in FY21. This strategic investment has resulted in an 18 per cent reduction in order-to-delivery time, 19 per cent reduction in fulfilment costs, and a 24 per cent decrease in split shipments within the last year alone. Order to delivery has reduced to 2.3 in FY24, compared to 4 in FY21, reducing by over 45 per cent.

The company has also added warehouses in non-metro regions and shifted to a regional fulfilment model. “The shift from a national fulfilment model to a regional fulfilment model helped us reach closer to customers. There was a reduction in air shipments as well as split shipments, resulting in lower cost per shipment by Q4FY24,” said the Annual Report.

As of March 31, 2024, Nykaa served 27,800 pin codes, covering almost 98 per cent of the serviceable pin codes across the country.
 

Nayar also added that the company is harnessing the power of generative AI for better customer experience.

“The digital transformation we have witnessed in the past decade has been incredible and unprecedented. Nykaa has been at the forefront of this rapid change building on combined opportunity that was presented by the growing categories, the aspirational and adventurous millennial and Gen-Z populations, the advancing technologies and rapid digitisation of how we interact and engage with commerce,” said Nayar.