AI tools, influencer-led campaigns, and Gen Z targeting fuel Nykaa’s expansion strategy
Nykaa, the omnichannel beauty and fashion retailer, has increased its marketing spend by 34.5% to ₹994.82 crore in FY25, driving a 28% year-on-year growth in its customer base. The company now boasts over 42 million cumulative customers.
CEO Falguni Nayar, in the brand’s FY25 annual report, attributed the growth to strategic investments in technology, personalisation, and influencer-driven campaigns. “AI, virtual try-ons, and tailored experiences are helping shape the next phase of growth,” she said.
Marketing now accounts for 12.5% of Nykaa’s revenue, up from 11.6% in FY24. Initiatives like Nykaaland and Nykaawali Shaadi were aimed at building long-term brand equity and expanding reach across new customer segments.
The company reported a profit after tax of ₹72 crore, marking an 81% increase year-on-year. Net revenue reached ₹7,950 crore, while EBITDA rose 37% to ₹474 crore. Capital expenditure grew to ₹128 crore, focused on tech upgrades and store expansion.
Anchit Nayar, CEO of Nykaa E-Retail, noted rapid growth in Tier-II and III cities. The retailer has expanded to 237 stores in 79 cities and plans to scale to over 500 outlets by FY2030. Gen Z consumers and premiumisation remain key growth levers.
Nykaa’s House of Brands crossed ₹2,100 crore in GMV, with Dot & Key contributing ₹900 crore, Nykaa Cosmetics ₹350 crore, and Kay Beauty ₹250 crore.
With a dual focus on reach and luxury, Nykaa is positioning itself as a leader in India’s evolving beauty retail landscape.
