Nykaa partners with Apparel Group to enter Qatar, Oman, others
In its strategic alliance, Nykaa and Apparel Group will set up a separate entity, where FSN International will hold a 55% stake and remaining will be held by the Dubai-based retailer.
FSN E-Commerce Ventures Ltd, which runs, will enter Saudi Arabia, Qatar, Oman and Kuwait, among other Gulf Cooperation Council (GCC) countries. To aid the beauty giant's international expansion, Nykaa has partnered with Dubai-based Apparel Group.
Apparel Group, which is run by Sima Ganwani Ved, will team up with Nykaa to set up a separate entity wherein FSN International will hold a 55% stake and the remaining 45% will be held by the Dubai-based retailer, according to a Bombay Stock Exchange (BSE) filing.
"We see those markets (GCC countries) in terms of growth. There is also new pragmatism towards global economy, tourism and business," Falguni Nayar, Founder and CEO, Nykaa said in a press conference.
Nykaa, which was founded in 2012 by Falguni, became the Indian startup ecosystem's poster child for scaling digital beauty across India. This was followed by the company's blockbuster public market listing in 2021. For many years, Nykaa has been focused on scaling its brand through digital as well as physical stores. With its alliance, the beauty giant will be leveraging Apparel Group's over 2,000 stores across GCC countries.
"We understand our markets and our consumers and continually strive to exceed their expectations through our innovative and forward-thinking mindset. Our omnichannel approach, which includes the first ever Phygital store in the GCC region, has made us the partner of choice for a large plethora of brands," said Sima.
Falguni also said the company wants to leverage the changing beauty trend across GCC countries. With more women in the Middle East now able to drive and make decisions about their marital lives, among other relaxations for women's rights, the beauty sector is on an upward trend in the region.
Apart from introducing an international beauty brand in India, Nykaa has acquired at least five brands, including Dot and Key and Little Black Book. The company said it is also taking “measured steps” to take some of its owned brands to international markets like the US, Middle East, and Mauritius.
Nykaa has about 10 in-house brands including Nykaa Naturals, Nykaa Cosmetics, and Kay Beauty. Some of these brands like Nykaa Cosmetics are listed on the horizontal ecommerce platform Noon.com in the United Arab Emirates (UAE).
Edited by Kanishk Singh