Five Nykaa executives resign amid trembling share prices: Report
The alleged exits are part of the standard annual appraisal and transition process, a report said.
Friday March 24, 2023,
2 min Read
Five executives from—the beauty company operated by FSN E-Commerce Venture—have resigned as the company's stock price falls and competition heats up.
As per a Reuters report, the alleged exits are part of the standard annual appraisal and transition process.
Among those who resigned are Manoj Gandhi (Chief Commercial Operations Officer), Vikas Gupta (Chief Executive Officer of wholesale business), and Gopal Asthana (Chief Business Officer of the fashion division).
Additionally, Suchi Pandya, Vice President of Nykaa's fashion division’s owned brands business, and Lalit Pruthi, Vice President of Finance at the fashion unit, have also resigned.
On Friday, Nykaa's stock price fell by 0.22%, ending the day at Rs 137.80 per share.
YourStory has not independently verified this report.
While the reason for the resignation of the four executives could not be ascertained, Pruthi has now joined edtech firm UNIVO as chief financial officer. He worked with Nykaa for about a year.
The company have termed it as "voluntary and involuntary exits".
Executives who have quit Nykaa had a short stint at the company in the range of 1 to 3.5 years.
Pandya joined Nykaa Fashion in January 2021 following the acquisition of her online jewellery firm Pipa.Bella.
Among all the executives, Asthana has worked for the longest period of 3 years and 5 months at Nykaa.
India's beauty ecommerce space is highly cluttered and dominated by players includingPalette, Sephora, SS Beauty by Shoppers' Stop, , , and , among others.
Recently,also launched an online beauty platform called Tira, dedicated to luxury beauty positioning itself as a direct competitor to Nykaa Luxe in the segment.
Nykaa's shares open 4% lower as Q3 profit slides 71% YoY
The Falguni Nayar-led ecommerce firm's revenue jumped 33% in the December quarter from a year earlier to Rs 1,463 crore, while net profit dived to Rs 8.5 crore from Rs 29 crore in the corresponding year-ago period.
Total expenses in the third quarter rose 36% year-on-year to Rs 1,456 crore. Higher employee benefits costs and other expenses dragged Nykaa's EBITDA margin down to 5.3% from 6.3% a year earlier.
(With inputs from PTI)
Edited by Suman Singh