Beauty and fashion platform Nykaa has introduced Nykaa Muse, an AI-powered personal stylist aimed at delivering tailored product recommendations to users. The launch underscores Nykaa’s deepening focus on artificial intelligence across its business operations.
At the company’s annual general meeting, Chairperson Falguni Nayar revealed that over 40 GenAI initiatives are currently active across customer service, product development, and internal operations. “An increasing share of our code is now written by AI,” she said, setting a target of 50% AI-generated code by year-end – ahead of industry standards.
Nykaa reported ₹15,600 crore in GMV for FY25, a 25% year-on-year rise and a 42% CAGR over five years, outperforming the broader e-commerce market. The company’s beauty segment drives 75% of sales, while fashion contributes 25%. Nykaa has grown its GMV six-fold in recent years.
With a firm focus on omnichannel growth, Nayar emphasized the importance of integrating both online and offline retail. As of FY25, Nykaa serves 42 million customers, operates 250 physical stores across 82 cities, and offers over 9,000 brands.
Nykaa has also entered the quick commerce space with Nykaa Now, promising 30–120 minute beauty product deliveries across seven major cities.
Citing industry data, Nayar stated India’s e-commerce market reached $60 billion in FY25, with beauty and fashion contributing 35%. She forecasted this market to grow to $190 billion by FY30, with beauty and fashion expanding to 40% of total share.
Nayar’s own compensation rose 28% to ₹11 crore in FY25.
