Nykaa

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Nykaa
Nykaa New Logo.svg
Type of businessPrivate
Type of site
E-commerce
Available inEnglish
Founded2012; 9 years ago (2012)
HeadquartersMumbai, Maharashtra, India
Area servedIndia
Founder(s)Falguni Nayar
Key peopleFalguni Nayar (CEO)
Industry
Services
RevenueIncrease 1,860 crore
(US$ 265.71 Million) (2020)[1]
Net incomeIncrease 278 crore
(US$ 38,082,191) (2020)[2]
Employees2000+ (2021)
URLwww.nykaa.com
CommercialYes
RegistrationRequired
Current statusActive
Native client(s) onAndroid
iOS

Nykaa is an Indian e-commerce company, founded by Falguni Nayar in 2012 and headquartered in Mumbai. It sells beauty, wellness and fashion products across websites, mobile apps and 76 offline stores. It is a unicorn startup, and as of 2020, was valued at 85 billion (US$1.2 billion).

It sells products which are manufactured in India as well as internationally. In 2015, the company expanded from online-only to an omnichannel model and began selling products apart from beauty. In 2020, it retails over 2,000 brands and 200,000 products across its platforms.

History[edit]

Falguni Nayar, a former managing director at Kotak Mahindra Capital Company, founded Nykaa in 2012. It was launched as an ecommerce portal curating a range of beauty and wellness products.[3][4] The brand name Nykaa is derived from the Sanskrit word nayaka, meaning ‘one in the spotlight’.[5]

In 2015, the company expanded from online-only to an omnichannel model and began selling fashion products.[6][7]

In 2018, the company launched Nykaa man, India's first multi-brand ecommerce store for men’s grooming.[8][9] The company expanded into fashion by launching Nykaa Design Studio, which was renamed to Nykaa Fashion.

In 2020, Nykaa launched Nykaa PRO. It is a premium membership program that provides users special access to professional beauty products and offers via the Nykaa App.[10] In Dec 2020, Nykaa Fashion launched its first store in Delhi, making the fashion business omnichannel.[11][12]

Funding[edit]

Since 2012, Nykaa has raised money through multiple rounds of funding.[13][14][15] In March 2020, it raised 100 crore (US$14 million) from Steadview Capital, thus making it a unicorn startup valued at 85 billion (US$1.2 billion).[16][15][14] This was followed by another tranche of 67 crore (US$9.4 million) funding by Steadview in May 2020.[17]

In October 2020, Bollywood actresses Alia Bhatt and Katrina Kaif invested undisclosed amounts in the company through secondary funding.[18] In November later that year, global asset management firm Fidelity invested in the company through a secondary sale of shares from an existing equity investor.[19]

Operations and services[edit]

Nykaa follows an inventory-based model with warehouses in Mumbai, New Delhi, Pune, Haryana, Kolkata and Bangalore.[20] In 2020, in addition to its primary ecommerce business, it has an offline presence via 76 brick-and-mortar stores across the country.[21] It claims to have over 200,000 products across 2,000 brands.[22][15][23]

It has three offline store formats called Nykaa Luxe, Nykaa On Trend and Nykaa beauty Kiosks. The Luxe format features international luxury beauty brands such as Huda Beauty, MAC, Dior, and Givenchy along with Nykaa Beauty, the in-house collection of beauty products.[24] The Nykaa On Trend format has products curated by category basis their popularity.[25] In India, Nykaa is the only retailer that sells international brands like e.l.f, Charlotte Tilbury, Tonymoly, Becca, Sigma, Limecrime, Dermalogica, and Murad.[26][27]

House of brands[edit]

Nykaa has a series of in-house brands within beauty and fashion. Some of them include:

  • Nykaa House of Brands – Nykaa Naturals, Nykaa Cosmetics, Kay Beauty
  • Nykaa Fashion – Nykd by Nykaa, 20 Dresses, RSVP, Mondano, Likha,[28] Pipa Bella[29][30]

In 2015, Nykaa launched its collection of in-house beauty products via Nykaa Cosmetics and later expanded it across categories of Eyes, Nails, Face, Lips.[31][32] The Nykaa Naturals portfolio is a collection of skincare and personal care products.[33] In early 2019, the brand launched its Wanderlust Bath & Body collection, and later in the year introduced a beauty line with the iconic designer Masaba Gupta, Masaba by Nykaa.[34][35]

Partnerships and acquisitions[edit]

In May 2019, Nykaa acquired 20Dresses.com, a private women’s styling platform.[36] The same year, it launched its first celebrity partnership brand, Kay Beauty, with actress Katrina Kaif.[37][38]

In 2021, Nykaa Fashion acquired the India fashion jewellery brand, Pipa Bella.[39]

Security and privacy issues[edit]

On 18 November 2019, an API flaw was detected in Nykaa Fashion’s internal systems that allowed a potential attacker to log in to any user account if the attacker had access to the user's email ID. This could potentially have put users' data at risk of being hijacked.[40][41] Consequently, the company fixed the security vulnerability.[40]

Content platforms[edit]

Nykaa also hosts beauty and fashion content via Nykaa TV, its YouTube channel. It contains informational videos about beauty, cosmetics, and styling.[42] Some of its notable campaigns include #BreakTheHashtag (with Tapsee Pannu), #WhatMakesYourBeautiful (with acid attack survivor and activist Laxmi Agarwal), Beauty in Her Story (in collaboration with Netflix), web series Tinderella, Khoj (a Mother’s Day film), and Rakshak (a Raksha Bandhan special film).[6][43][44]

Since 2018, it has been hosting an online community of beauty and fashion enthusiasts via its Nykaa Network. In 2020, it launched a web miniseries called The Beauty Bar. Nykaa also hosts Beauty Book, a beauty and fashion magazine.

Corporate social responsibility[edit]

Nykaa extends social and financial help to causes such as education, health, women’s rights and empowerment, rural development, and disaster management. Some of its notable CSR partnerships are with SPARSH India, CARE International Confederation, PRIDE, Milaap, Nanhi Kali, Make a Wish Foundation, Benefactory, Sneha, and PM CARES Fund.[45][46]

In 2021, Nykaa partnered with GiveIndia to contribute towards Covid-19 relief initiatives.[47]

Activities[edit]

Since 2015, Nykaa has hosted the ‘Nykaa Femina Beauty Awards’ in partnership with women’s lifestyle magazine Femina (India).[48]

In 2019, Nykaa Fashion launched ‘The Power List’ in partnership with Vogue India.

See also[edit]

Ecommerce in India

References[edit]

  1. ^ "Nykaa looks to list at $4.5 billion valuation". 2 June 2021. Retrieved 2 July 2021.
  2. ^ "The secret of Nykaa's success". Retrieved 2 July 2021.
  3. ^ Kapur, Mallika (24 March 2017). "Falguni Nayar: The beauty entrepreneur". Live Mint. Retrieved 2 April 2020.
  4. ^ "Shades in Beauty Space: Falguni Nayar". Economictimes.indiatimes.com. Retrieved 7 March 2013.
  5. ^ "Who are we | Nykaa". www.nykaa.com.
  6. ^ a b "Nykaa reveales its omni-channel content and guided selling strategy – ET BrandEquity". ETBrandEquity.com.
  7. ^ Lall, Pavan (19 April 2019). "Nykaa bets big on fashion, offline stores with eye on Unicorn tag". Business Standard India – via Business Standard.
  8. ^ Srinivasan, Supraja. "Nykaa joins party in men's grooming". The Economic Times. Retrieved 24 May 2021.
  9. ^ "Ahead Of Festive Season, Nykaa Offers Men's Fashion, Grooming Products". Inc42 Media. 5 October 2020. Retrieved 24 May 2021.
  10. ^ Kapani, Puneet (28 October 2020). "After Katrina Kaif, Alia Bhatt Bets on Nykaa". Entrepreneur. Retrieved 24 May 2021.
  11. ^ "Nykaa Fashion starts offline expansion, first store to open in Delhi's Ambience Mall". www.businesstoday.in. Retrieved 24 May 2021.
  12. ^ IN, FashionNetwork com. "Nykaa Fashion goes offline with its first store in Delhi". FashionNetwork.com. Retrieved 24 May 2021.
  13. ^ "Max Ventures and Industries acquires 2% stake in Nykaa". Timesofindia.indiatimes.com.
  14. ^ a b "Steadview funding values Nykaa at $1.2bn – Times of India". The Times of India.
  15. ^ a b c "Nykaa enters unicorn club with fresh Rs 100-crore funding". 2 April 2020.
  16. ^ Sai, Ishwar (1 April 2020). "Nykaa raises Rs 100 crore from existing investor Steadview Capital". Business Standard. Retrieved 1 April 2020.
  17. ^ Gooptu, Biswarup. "Steadview Capital invests Rs 67 crore more in Nykaa" – via The Economic Times.
  18. ^ "After Katrina Kaif, Alia Bhatt invests in e-commerce unicorn Nykaa". Business Insider.
  19. ^ "Fidelity invests in beauty etailer Nykaa" – via The Economic Times.
  20. ^ "pollution control compliance". www.nykaa.com.
  21. ^ "Nykaa Fashion starts offline expansion, first store to open in Delhi's Ambience Mall". www.businesstoday.in.
  22. ^ "Nykaa decks up to woo Indian beauty market with more products and services". Economictimes.indiatimes.com.
  23. ^ "Beauty startup Nykaa plans $3 billion IPO this year – ET Retail". ETRetail.com.
  24. ^ Dalal, Avanti. "Everything you need to know about the new Nykaa Luxe store in Mumbai". Vogue India.
  25. ^ "Nykaa to expand offline presence". Deccanherald.com.
  26. ^ "Charlotte Tilbury launches in India with these bestsellers". Lifestyle Asia India. 19 November 2020.
  27. ^ "Meet today's beauty customer". Mintlounge. 13 February 2021.
  28. ^ "Nykaa launches new category Nykd All Day – Featuring Athleisure, Leisure & Activewear exclusively on Nykaa Fashion".
  29. ^ "Nykaa Fashion acquires Pipa Bella to strengthen jewellery category". The Economic Times. Retrieved 24 May 2021.
  30. ^ Staff Writer (12 April 2021). "Nykaa Fashion acquires online jewellery retailer Pipa Bella". mint. Retrieved 24 May 2021.
  31. ^ "Nykaa expects private label revenue contribution to double in 2017–18". Livemint.com.
  32. ^ Verma, Shrutika (9 March 2016). "Nykaa looks to raise Rs 100 crore, expand private label offerings". Livemint.com. Retrieved 29 June 2018.
  33. ^ Bureau, Indiaretailing (3 February 2021). "Nykaa Naturals branches out into a new category, launches hair care range".
  34. ^ "Nykaa Beauty enters the essentials category". The New Indian Express.
  35. ^ "Masaba Gupta collaborates with Nykaa to launch fragrance collection". The New Indian Express.
  36. ^ "Exclusive: Beauty e-tailer Nykaa acquires women styling platform 20Dresses.com". Techcircle. 22 March 2019.
  37. ^ Bhattacharya, Ananya. "Nykaa was an obvious choice for Katrina Kaif over Amazon and Flipkart". Quartz India.
  38. ^ "Katrina Kaif finally reveals her much-awaited makeup line on Instagram". Vogue India.
  39. ^ "Nykaa Fashion acquires jewellery brand Pipa Bella". cnbctv18.com. Retrieved 24 May 2021.
  40. ^ a b "Nykaa fixes a data security bug". Economic Times. Retrieved 3 December 2019.
  41. ^ "Flaws in code put customer data of four consumer internet platforms at risk". Live Mint. Retrieved 3 December 2019.
  42. ^ "Nykaa Adopts 360-degree Marketing Strategy To Promote Products; But Influencers Play A Vital Role". Moneycontrol.
  43. ^ Bureau, Indiaretailing (14 May 2018). "Nykaa.com closes its series D investment round of Rs 165 crore".
  44. ^ "Nykaa and acid-attack survivor Laxmi Agarwal join hands for #WhatMakesYouBeautiful – Exchange4media". Indian Advertising Media & Marketing News – exchange4media.
  45. ^ "Nykaa CSR | Nykaa". www.nykaa.com.
  46. ^ Alves, Glynda. "Nykaa employees turn Covid warriors, raise Rs 1 cr towards PM CARES fund; Fortis Healthcare, Amazon follow suit" – via The Economic Times.
  47. ^ "GiveIndia Fundraisers: India's most trusted crowdfunding website". fundraisers.giveindia.org. Retrieved 24 May 2021.
  48. ^ "Nykaa and Femina host the Nykaa Femina Beauty Awards in Mumbai". Timesofindia.indiatimes.com.

External links[edit]