Nykaa looks at a three-fold increase in revenue

Fashion and beauty retailer Nykaa, which is run by FSN Ecommerce Ventures, is looking at a three-fold increase in its revenue, expanding its private label offering and turn profitable in the next 10-12 months.

This year, the firm hopes to make sales worth Rs 80-100 crores and looks and revenues of Rs 240-300 crores by March 2017. Nykaa had raised funds in October and now plans to raise Rs 90-100 crores in the next 6-10 months. This will go towards supporting its private label and expanding into offline stores. Recently, Nykaa introduced its private label products in the bath and bodycare category. In 2015, it had launched its first private label in nail paints category. This move into private label was triggered by the push towards improving financial metrics as well as a gap in the market. Now, in the next three-12 months, Nykaa will launch its own line of kohl, lipsticks, perfumes and make-up.

Nykaa has opened one offline store at New Delhi airport. It will open three more stores in Mumbai, Bengaluru and Delhi in the next quarter. The company expects offline stores to generate 10 per cent of overall revenue by 2020. Private labels are expected to contribute about 15 per cent of overall revenues in the next three to four years.

Nykaa’s founder, Falguni Nayar, a former investment banker, says that the launch of native Nykaa beauty brands is in line with the company’s long term goal of offering quality products at value for money prices. The company will soon look at expanding its offerings in the men’s category.

Nykaa was founded in 2012 and is available across 900 cities and sells more than 400 brands and 40,000 products.