Beauty and fashion retail brand may grow at a compound annual ( ) of about 20% between FY24 and , brokerage firm said in a note. The growth rate was a base case, with growth at about 25% in an upside scenario and about 15% in a downside scenario for the same timeline. In the base case, Nykaa’s order frequency should grow gradually as the customer base matures, Jefferies said.
The gross merchandise value (GMV) for both the beauty and personal care (BPC) and fashion categories will likely grow at about 25% CAGR, the note added. In FY24, Nykaa’s BPC segment grew 25% in GMV terms to Rs 8,340 crore, while the fashion segment grew 27% to Rs 3,269 crore. The ‘others’ segment – which includes the business-to-business (B2B) arm called Superstore and media arm LBB – saw a 59% growth to Rs 835 crore.
About a third of Nykaa’s product basket is makeup products, another third is skincare items and the final third is other items, the Jefferies note quoted Nykaa’s senior management as saying during a roadshow in the US. Nykaa is about 35% of the Indian online BPC market, and is also expanding offline, with the stores typically turning profitable on an Ebitda (earnings before interest, taxes, depreciation and amortisation) basis in less than a year after launch, while paying back for themselves in less than three years of launch. During its latest earnings call on May 22, the such as the United Arab Emirates and Saudi Arabia through its website in January and opened its first .
