“Almost one-third of our GMV contribution in FY23 has come from our newer businesses, with all of them being built from scratch over the last four to five years. Our success here comes from diligently finding product-market fit, executing well with speed, and driving only sustainable growth,” Nayar said.
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The company clocked a consolidated GMV of Rs 9,743 crore and net revenue of Rs 5,143 crore during FY23. It has launched or acquired a number of brands over the last few years in both beauty and personal care (BPC), and fashion verticals.
As of FY23-end, the company had 12 owned brands in the BPC category and 13 in the fashion segment.
In an investor presentation made during the AGM, Nayar said that Nykaa’s dependence on its mainstay BPC business, in terms of GMV, had reduced over time with the share being 68.2% in FY23 down from 98.3% in FY19. As of last fiscal, the fashion category had 26.4% share in Nykaa’s GMV with the remaining 5.4% contribution coming from other segments such as NykaaMan, eB2B platform Superstore by Nykaa and other verticals.
Nayar also indicated that there was a “large headroom for growth” in the BPC segment given India’s under-indexed per capita spend in the category. As per the company, India’s annual per capita spend on BPC is currently around $15, and is expected to grow to $50 by 2030. A Nykaa customer’s current average annual BPC spend is around $80, it said.
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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 company said, adding that a Nykaa customer today spends $130 on fashion.For the first quarter of the current fiscal, Nykaa reported an 8% year-on-year increase in consolidated net profit to Rs 5.4 crore. Revenue from operations rose 24% to Rs 1,421.8 crore for the three month period. At the time, the retailer had reiterated that the premium category in the BPC segment is expected to grow faster than the mass category. It sees the premium segment commanding 55% of consumer spends in the beauty vertical by 2027.