Nykaa’s bet on new-age beauty pays off

Beauty marketplace operator Nykaa on Tuesday said gross merchandise value (GMV) from its beauty-owned brands grew by 39% YoY to reach Rs 1,095.4 crore in FY24, accounting for 13% of overall beauty GMV. 

This was driven by new-age brands in Beauty and Personal care like Dot & Key, which clocked an annualised run rate of Rs 580 crore during the fourth quarter of FY24. During the same period, Kay Beauty, which was developed in partnership with Katrina Kaif, clocked a GMV run rate of Rs 170 crore. Nykaa Cosmetics clocked annualised GMV run rate of Rs 300 crore, according to the company's annual report. 

Its other businesses like Nykaa Man, eB2B Platform Superstore by Nykaa, LBB, Nudge, and GCC-focused platform Nysaa together clocked GMV of Rs 835.3 crore in FY24, a 59% growth over FY23. Annual unique transacting customers on these platforms also grew by 40% to 0.7 million, the report said.

This segment more than doubled its revenue to Rs 469 crore during the financial year FY24, accounting for 7.4% of total revenue. 

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Nykaa Fashion, which hosts brands like Nykd, Twenty Dresses, Kica, Gajra Gang, and Likha, contributed 27% to the platform's GMV with 27% YoY growth. The fashion vertical clocked revenue of Rs 530.2 crore in FY24 compared to Rs 434.7 crore in FY23, a 22% hike over the previous year. 

Falguni Nayar-led Nykaa posted a YoY rise in consolidated net profit for the financial year 2023-24 at Rs 32.2 crore on back of international expansion in the GCC and fashion categories. 

Nykaa continues to bank on premiumisation trends as higher disposable incomes drive wallet share for beauty and personal care products. In FY2024, premium beauty brands comprised more than 65% of its total GMV of physical stores, while premium beauty brands comprised nearly 50% of its brand offerings in physical stores.