Beauty and fashion brand Nykaa has seen its newer businesses perform well, with these ventures contributing to "one-third" of the company's gross merchandise value (GMV) in FY23, the company's Chairperson, Managing Director and Chief Executive Officer, Falguni Nayar, told shareholders during its 11th Annual General Meeting (AGM) on Monday.
"Almost one-third of our GMV contribution in FY23 has come from our newer businesses, all of them being built from scratch over the last 4 to 5 years," Nayar said. "Our success here stems from diligently finding product-market fit, executing well with speed, and driving only sustainable growth," she added.
Nykaa's beauty and personal care (BPC) owned brands contribute to 11.9 per cent of its overall BPC GMV, while its Fashion-owned brands contribute 12.9 per cent to the overall Fashion GMV.
Its BPC gross merchandise value (GMV) stood at Rs 6,649 crores for FY23, growing 33 per cent year-on-year, while the Fashion GMV stood at Rs 2,569 crores for FY23 and now constitutes over 26 per cent of Nykaa's overall consolidated GMV.
Currently, the company offers as many as 25 brands across Beauty, Personal Care and Fashion (BPC), across categories. These include Kay Beauty, Nykaa Cosmetics, Dot & Key, Nykd and 20 Dresses.
According to Nayar, India's per capita BPC consumption is currently at $15 and is likely to grow to $50 by 2030. "This presents a significant opportunity for Nykaa, which already enjoys an annual consumption value of $80 per capita, more than five times the national average."
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Meanwhile, for 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 says, will help the country become the third-largest consumer market by 2030.
Nykaa achieved a gross profit of Rs 2,278 crores and earnings before interest, taxes, depreciation, and amortisation (Ebitda) of Rs 256 crores in FY23, with an Ebitda margin of 5 per cent. Its consolidated GMV stood at Rs 9,743 crores, while its net revenue increased 36 per cent year-on-year to Rs 5,143 crores for the year.
"India has rapidly become the most preferred destination for many global brands to meet their growth ambitions. By adopting an unconventional technology-first approach, we were able to disrupt and democratise both demand and supply for the industry while reaching over 98 per cent of the market," Nayar said.
Nykaa's business spans multiple digital platforms, retailing over 6,200 brands to a customer base of 24 million, and the company services customers in 98 per cent of the country's pin codes.