The beauty segment remained the primary growth driver, with gross merchandise value (GMV) expected to have grown in the low 30% range, ahead of overall industry trends. Nykaa attributed this to continued investments in customer acquisition, consistent order volume growth, and offline expansion, including the rollout of 19 new stores during the fourth quarter.
The Indian government is considering implementing stricter quality norms to curb the import of substandard beauty products. Consultations are underway for quality control orders, which could significantly impact the $21-billion beauty and personal care market. Industry players emphasise the need to avoid redundancies with existing standards.
Established beauty brands faced a sales growth slowdown in FY24, while new-age and global labels surged. Consumers preferred brands offering instant benefits, influenced by online platforms like Nykaa and Tira. The beauty market is expected to grow significantly, driven by an online surge and a preference for premium products, despite some temporary challenges.
Others who participated in the funding round were Vertex Ventures SEA, Sattva Family Office, Mirabilis Investment Trust, Vertex Growth Fund and Anicut Equity Continuum Fund. With this, the D2C company has raised Rs 421 crore in total capital raised across primary and secondary rounds.
Quick commerce has revolutionized the online grocery market, making up 70-75 per cent of total e-grocery orders, a significant rise from 35 per cent in 2022. The growth has been fueled by strong execution, increased incomes, diverse product ranges, and heightened convenience demand. Major companies have entered the competitive sector, driving further innovation and expansion.
The buyback, largely financed through the personal capital of Sirona's founders, Bajaj and Mohit Bajaj, is estimated at around Rs 150 crore, including debt repayments incurred during Sirona’s time under Good Glamm’s ownership, according to sources.
India is the fastest growing online market for beauty products, with beauty ecommerce sales rising 39% from June-November 2024 compared to a year earlier, outpacing physical store growth at 3%. Youthful consumers eager to spend, coupled with social influencers, have driven this trend, with major brands and quick commerce platforms playing key roles.
Nykaa plans to expand to 350 stores while emphasizing its e-commerce business, which currently drives 91 per cent of omnichannel turnover. Despite a minor dip in profits, there has been a significant improvement in EBITDA. Nykaa continues its international expansion in GCC and aims to enhance its fashion and beauty segments.
Nykaa reported a 61 per cent YoY growth in consolidated net profit to Rs 26.12 crore, although below the Street estimate of Rs 36 crore. Revenue rose 27 per cent YoY to Rs 2,267 crore, while EBITDA stood at Rs 141 crore with margins of 6.2 per cent. PAT more than doubled sequentially to Rs 10 crore.
Mukesh Ambani-led Reliance Retail has re-launched Shein in India, sparking a fast fashion war and challenging competitors like Trent's Zudio and Nykaa Fashion. Despite potential competitive pressures, experts suggest that Shein's online-first model might face challenges in supply chain establishment and unit economics.
Regulatory filings in Singapore reveal that Myntra's parent company, FK Myntra Holdings Pvt Ltd, received the investment in November, marking Flipkart's second investment of 2024. Myntra will now face heightened competition in the online apparel retail sector with the return of Chinese fast fashion platform Shein to the Indian market after a five-year ban.
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