The business face of Nykaa: Falguni Nayar
Nykaa is one of the most popular and lovable brands for beauty, wellness and fashion cosmetics founded by Falguni Nayar. However, this brand was challenged with the outbreak of 2020, similar to other businesses across the world. The constant rise in the COVID-19 cases resulted in nationwide lockdown which was observed from 25th March in India. This affected both the online and offline business of Nykaa. Furthermore, the eCommerce company was only allowed to deliver the essential goods and all were stopped. As per the government restrictions, it was very well cleared that it is going to create a big problem for the Nykaa as it does not belong to essential goods. They need to take some steps to survive in the market.
The company was ready from the beginning of the lockdown as they started selling the essentials from phase-1 of the lockdown. According to the government, essentials products include shampoos skincare, like moisturisers, and we have a lot of personal care, skin care and hair care products, which are used every day. After they started to sell these products they recorded the turnover, which was 10-15 per cent of their business.
Nykaa’s online business came up with 20% of the business in April. Increase in the month of May and June of about 65 and 85 % respectively. Offline stores were also showing the graph of growth. In the month of May, it was having 20 % of business compared to the month of February. In the month of May, they are forecasting the growth of 50 per cent to 75 per cent in July.
Nykaa’s Steep Rise
Falguni started to sell essential goods by using online stores and used their 70 offline stores across the nation to support smooth and efficient delivery. Nykaa also included hygiene products like hand sanitisers and cleansers, masks, hand washes, personal protective equipment (PPE) suits, and thermometers.
With the help of offline-online stores, Nykaa was again able to perform well in the market. The company generated a revenue of Rs.1, 983 crores in FY 20 and generated a profit of Rs. 78 lakh against the loss of Rs.21 crore in FY19.Along with that in 2020 between March and April, Nykaa also raised the fund of Rs.166 crore from Steadview capital.
India’s Second Richest Woman
By using the discount strategy, Nykaa forecasted a 40 per cent growth in their revenue for the year ending March 2021 and rose from $247 million in March 2020. Boston Asset Management Company Fidelity Management and private equity firm TPG Growth Capital are seeking an IPO this year which is going to have a value of around $3billion. But Nykaa was already in the phase of success because before this Nykaa is already going to have its funding. This is going to spur the rank of Falguni Nayar to be India’s second-richest woman after Kiran Mazumdar Shaw.
Also read, The 20 Most Successful Women Entrepreneurs in India
