Nykaa, an online supplier of beauty products, was doing well as the Covid-19 outbreak hindered companies from airlines to tourism. Due to pandemic-related restrictions, hordes of consumers went to its virtual shelves, buying everything from skin treatments to lipsticks. Nykaa intends to record a 40% increase in revenue for the fiscal year ending March 2021 up from $247 million in March 2020.
According to Gurgaon-based consulting firm Technopak, the Indian beauty and personal care market is predicted to rise to $23 billion by 2023, up from $13 billion in 2018. This growth would be fueled by increased wages among young Indians.
Nayar has avoided discounting in favour of marketing methods such as influencer-driven beauty blogs that provide information on new items and trends. She added bricks to clicks by launching the first Nykaa store in Delhi in 2015, after realising that clients prefer to touch, feel, and test on cosmetics before purchasing them.
Angad Banga, son of Harry Banga, whose Hong Kong-based family business owns a 10% stake in Nykaa, says, “It has been wonderful witnessing Nayar move smoothly from one of India's premier investment bankers to a brilliant entrepreneur in the beauty, fashion, and technology space.” (Angad used to work at KKR with Falguni Nayar's husband, Sanjay Nayar, who oversees the firm's India unit.)
Nayar's entrepreneurial journey has not been easy. As she traversed the worlds of beauty, technology, and retail, she faced a steep learning curve. In the first four years, three chief technology officers resigned. Despite her banking experience, Nayar found fund-raising difficult at first—a far cry from the current situation, in which she is being courted by investment banks interested in listing her company.
Today, she's up against a slew of rivals, including billionaire Chandru Raheja's department store chain Shoppers Stop and Amazon, which has carved itself a significant online presence in India. However, Nayar, whose family has always been supportive of her beauty business, has both of her 30-year-old twins on her team.