Nykaa, an e-commerce start-up into skincare and beauty products, plans to open five stores in 2016 and 30 stores across India by 2020. A start-up venture by Falguni Nayyar, former Managing Director of Kotak Investment Bank, Nykaa plans to roll out brick-and-mortar stores in major cities of India and would source a funding of Rs 80 crore from private equity and high net worth individuals.
"We have one store in Delhi Airport at Terminal 3 and would open four more across Bangalore, Mumbai and Delhi during this year. We are looking at adding 30 stores by year 2020, but we will get major part of business from online market space," said Falguni Nayyar, Founder and CEO of Nykaa.
The number of online shoppers has proliferated from an estimated 40 million in 2014 to 80 million in 2016. Having less competition in the luxury and beauty products, we are eyeing a significant pie of the online business.
Nykaa.com raised Rs 25 crore in a funding round by private equity firm TVS Capital in 2015 and is projected to raise Rs 80-85 crore for future expansion.
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"We need funds for technology upgradation, brand building and warehousing. We have no plans to tie-up with any other player in the same space. We sell only niche products so competition is not a challenge for us". She said with a fourfold growth expected over the next 1-2 years, approximately 25 per cent is expected from up north including Delhi and NCR, 12 per cent from Mumbai, 10 per cent from Bangalore and the rest from metro cities including Hyderabad, Pune and Kolkata.