Operator of the Nykaa e-commerce platform, FSN E-Commerce Ventures has registered a significant rise in the fourth-quarter revenue of the platform. The platform’s net sales grew in the range of 27 per cent to 29 per cent. Meanwhile its gross merchandise value rose by around 30 per cent.
The smaller divisions of the e-commerce company exhibited the most rapid growth, contrasting with the mainstay businesses in beauty and garments, which both experienced a growth in gross merchandise value in the mid-twenties.
Including business-to-business operations, the smaller business units demonstrated a GMV growth of around 65 per cent or in the mid-sixties range during the quarter.
Nykaa attributes its success in the beauty business to robust growth in customer acquisition, platform conversion, and user engagement. The company emphasises a healthy surge in order volume, reflecting strong customer demand, particularly in categories such as makeup and skincare.
These results align with broader trends observed in India's consumer market, characterised by robust growth in products catering to the upper-middle-class and affluent segments over the past five quarters.
Originally focused on selling beauty products, Nykaa debuted in the Indian market in November 2021. Since then, it has diversified its offerings beyond beauty to include lifestyle and B2B segments through platforms like Nykaa Fashion, Nykaa Man, and Superstore.
Furthermore, Nykaa has strengthened its offline presence, boasting a total of 174 stores across India as of December 31, 2023.
