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Cosmetic is the most adorable commodity for most women. Even the cosmetics brands also surging up day by day.
Every woman wishes to look gorgeous and outstand everyone. So, she strives on her strict diet and is conscious about beauty products.
Many women will be having a terrifying experience while shopping for beauty products online. Most probably the women face fake products and inferior quality beauty products.
Cosmetics brands have a huge impact on women’s physical appearance. If women come across filthy beauty products, they will never be going to try again. So, it is a tough chance for cosmetic brands to procure the best beauty products.
Nykaa beauty products, Startup came to solve all the problems. The company provides top beauty products online. Millions of women trust Nykaa beauty products, for their quality and trustworthiness.
Let dive deep to know about Nykaa startup story. How Falguni Nayar made it possible to build the top best beauty products online platform.
Nykaa is the one-stop solution for beauty and fashion products. This platform provides the best quality of beauty products. Initially, the company takes off as an online beauty products e-commerce site.
But due to its enormous growth, it even set up offline stores as well. At present, there are more than 76 Nykaa offline stores. Moreover, it delivers online beauty products covering 14,000 pin codes across India.
Nykaa’s beauty product startup has had a massive impact on the cosmetics industry in India. Millions of women visit their sites to buy beauty products. There are almost 2,000 brands and 20,000 products across its platform.
Falguni Nayar, a banker turned entrepreneur is the founder of Nykaa company. The company was founded in 2012 to procure beauty products online.
Nykaa became a unicorn in 2020 after the investment of 66.64 Crores from Steadview Capital. The company has a 45% of market share in India. Besides, Nykaa’s valuation has raised US $1.2 billion.
The beauty and fashion company, Nykaa reported that it has 50%, repeat customers. It also claims that there are 5 million active users on its platform.
Moreover, it delivers more than 1.5 million orders every month. The retention rate of the users is also impressive and results in profitability.
Nykaa is targeting cosmetics as its primary product. Even a company has a huge opportunity to create milestones. Moreover, the cosmetics industry grows up to $20 billion in the market by 2025. So, Nykaa startup story is entirely the dream of Falguni Nayar.
Falguni Nayar motive about Nykaa startup story
Startups get to launch due to various factors like vision, problem-solving, desire, and mission. These are the factors that ultimately lay the foundation of the startup.
Earlier, women were facing a lot of issues while shopping for beauty products online. In the worst scenario, women end up purchasing low-quality products.
On the other side, Falguni Nayar was managing director at Kotak Mahindra Capital Company. In her official works, she comes across a lot of entrepreneurs.
After listening to the inspiring entrepreneurial journey, Falguni Nayar also becomes even more motivated. Then she always thought about the freedom and privileges that entrepreneurs possess. Besides, she realizes the impact that can be set from the ideas.
Finally, Falguni Nayar made up her mind to start her startup. But she was looking for a great idea to take off. Aside, her profession gave her an enormous amount of knowledge
Falguni Nayar had precise knowledge of every aspect of the business. So, she was very conscious of choosing the right idea.
After extensive market research, Falguni set up beauty products e-commerce site. In 2012, Falguni Nayar founded a company named Nykaa.
Hence, real problems gave raise to start Nykaa startup story.
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Nykaa startup story
As the name “Nykaa” is derived from the Sanskrit word nayaka meaning “one in the spotlight”.
Initially, Falguni chooses an online marketplace because it is cost-effective and easy for scaling up. Falguni went on to tie up with the delivery partner effectively. Because she is aware that fast delivers impresses the customers.
Even it adds to the customer experience. Falguni Nayar founder of Nykaa brought top beauty products to her platform. Cosmetic products like MAC and SUGAR are some of the world’s best cosmetics products.
Speedy delivery and the best beauty products are the essential factors for the company. Falguni did not make any compromise on the quality of the products.
Because she knows the importance of quality. Moreover, she was not ready to lose customer trustworthiness.
Then Nykaa beauty products startup got a positive trajectory in sales. Even they started to expand their services across the Indian cities. Falugni Nayar is the pillar for the Nykaa startup story.
To influence the customers, Nykaa set up its physical stores. Presently, it has 74 physical stores with more than 2000 products.
Even their customer acquisition costs dramatically declined from 1000 to 300 rupees. The company serves the best beauty products online.
Initially, Nykaa beauty products startup was selling third-party products. Eventually, earning commission from the sales.
But after significant growth of the company, they set up their private label products in 2015. They made a transition from the marketplace model to the inventory-based model.
Nykaa got its initial funding of 82 crores from the Sunil Manjal and the Mariwala family in 2014. In the following year, funding came from the TVS Capital of $9.5 million.
Further, Nykaa entered the fashion sector as well. Because Falguni Nayar witnessed the competition between a bong and Myntra.
IN 2019, the company became profitable. As it reported, 2.31 crores of profit in the financial year FY19. Nykaa, as become the well, know brand in the cosmetics sector.
Soon after in 2020, Nykaa became the unicorn in India. Recently, Nykaa filed for an IPO, issuing a share worth 525 crores. Even it planned to raise 4000 crores in the upcoming IPO. Nykaa success story is the inspiration for all entrepreneurs.
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Nykaa Business model
Nykaa’s business model follows the inventory-based model. In the inventory model, the company produces its own products. Like Nykaa had a private label on their products.
In the inventory type of model, the company has total control over its products. So, that the company can provide the best quality of products to its customers.
Another advantage, the products are stored in their warehouse. So that when the order comes in, products are just shipped from the warehouse to the customer’s doorstep.
Even the margin of profits in the inventory model is very high. So, Nykaa in all aspects follows a good business model.
If the business wants to make continuous growth, the company has to make an engaging platform.
In this platform, where the discussion, suggestion, and reviews of the products will be proceeding. The users can form the community and can express the experience of the products.
This encourages the user’s engagement with the platform. Even a company also can get valuable insight about the products. So that the company will be aware of the need of the customers.
Nykaa initially considers women are the primary customers. But after the increased demand for men’s beauty and wellness products, they expand their services.
Nykaa started to sell men’s hair care, skill wellness, and sport nutrition products online.
This platform serves as a bridge between designers and brands. Here designers can share their ideas with the brands. The collaboration and interaction between these two give rise to excellent products.
In this way, Nykaa’s business model works.
Fundings of Nykaa startup story
In 2014, Nykaa got fundings of a $1 million seed fund from Sequoia capital. In the following year, the company was able to raise $9.5 million. The funding round was led by Atul Nishar in the Series B round.
The startup gain lot of customers and also increased its products. So the company became traction for the women’s beauty and fashion products. On another side, in 2015, Billionaire Harsh Mariwala leads 100 crores in the Series C round.
In 2018, Nykaa accumulates a lump sum of amounts from the investors. It was able to raise 750 crores and 165 crores from the investors like Sunil Kant Munjal, Dalip Pathak, Harsh Mariwala, Max Ventures, and TVS Capital Fund.
Nykaa beauty products startup, has got a lot of demand from the consumer’s end. In 2020, 100 crores from the Steadview Capital and 67 crores in series F round. Besides Alia Bhatt and Katrina Kaif made the investment in the beauty care startup.
Acquisition of Nykaa beauty products startup
Nykaa beauty products startup, has got a lot of traction from the younger generation. Students, models, and working women are the main consumers of the Nykaa.
In April 2021, Nykaa made the acquisition of PipaBella. PipaBella is the online jewelry platform that showcases the best and trendy designs.
Both the startups are targeting the youths, in order to expand their services Nykaa acquired PipaBella. Suchi Pandya is the founder of the PipaBella.
Nykaa success story is been impacting the cosmetics industry. Nykaa has top brands like Mac, Bobbi Brown, Clinique, and Ester Lauder, One can easily buy beauty products online at Nykaa.
So, Falguni was the ultimate founder to make the Nykaa startup story a successful one.