Simultaneously, Nykaa boosts offline presence with 237 stores across 79 cities.
Beauty and fashion e-retailer Nykaa, which launched its quick commerce service in October 2024, has now scaled operations to seven metro cities.
According to a regulatory filing, Nykaa’s fast-delivery arm, ‘Nykaa Now,’ currently operates over 40 rapid delivery stores across these cities. The company’s parent, FSN E-Commerce Ventures, has committed to order fulfilment within 30 to 120 minutes.
During Nykaa’s Q4 earnings call, founder Falguni Nayar emphasized the company’s focus on speed:
“We are building the model around a 2-hour delivery promise, with most deliveries expected within 60 minutes-this is the right way to grow a beauty-led quick commerce business,” she said.
Growth Highlights:
- Offline expansion: Nykaa has opened 237 physical stores in 79 cities to date.
- Advertising spend: Nykaa’s ad expenditure rose 31% to Rs 244 crore in Q4 FY25.
- Beauty GMV: Nykaa’s beauty vertical recorded a 30% YoY growth, hitting Rs 11,780 crore in FY25.
- Fashion GMV: Fashion vertical grew by 12% YoY to Rs 3,800 crore.
Nykaa attributes this growth to increased traction from premium brands, with a reported 9x jump in annual consumption by top-tier customers. According to its investor report, the top 10% of users spent an average of $395 (approx. Rs 34,120) annually in FY25.
Brand Performance:
- House of Nykaa (owned brands):
- Beauty: Rs 1,700 crore GMV, marking a 6x increase YoY.
- Fashion: Rs 430 crore GMV, driven by:
- Homegrown D2C brands
- Occasion-led demand
- Shift from unbranded to branded spending
Market Outlook:
Nykaa identifies Gen Z as a key growth driver in the lifestyle segment. Their spending hit $0.9 trillion in FY25 and is projected to rise to $1.4 trillion by 2030.
According to Redseer’s report, Beauty & Personal Care and Fashion made up 25% of India’s discretionary spending in FY25. The lifestyle categories are expected to propel e-commerce from $23 billion in FY25 to $70–75 billion by FY30.
