Nykaa, a retailer of beauty and fashion products, has forayed into premium Indian designer wear with the launch of Nykaa Design Studio, its founder and chief executive Falguni Nayar said.
The new fashion portal showcases pret and daily wear collections of designers like Abraham & Thakore, ASAL By Abu Jani Sandeep Khosla, Masaba, Label by Ritu Kumar and can also do couture. “There is a space for premium fashion and designer label and we felt we could do it," Falguni Nayar said in an interview to Mint.
The company is also in the midst of revising its revenue targets for the financial year as it is growing ahead of its own projections, said Nayar.
Nykaa posted revenue of ₹ 570 crore in the financial year ended 31 March 2018, up from ₹ 214 crore in the previous year. It has projected revenue to grow to ₹ 1,050 crore this financial year but may revise the figure to ₹ 1,200 crore, said Nayar.
She did not give a time frame for posting net profit but said the company was Ebitda positive in the first quarter of this fiscal.
Over the years, the beauty retailer has forayed into lingerie, kidswear, accessories and men’s beauty. Earlier this year, Nykaa also launched a separate men’s beauty site and is hoping that men’s beauty will contribute 10% of overall sales.
Lingerie and accessories which are clubbed under Popups will contribute 5%-6% and private labels will be upwards of 10%, said Nayar. She however did not give an estimate on the revenue targets for Design Studio.
Nykaa received funds worth ₹ 165 crore in May. The beauty and cosmetics e-tailer is backed by TVS Capital and Max Group besides high networth individuals.
Nykaa also has a physical presence with around 20 stores. The company plans to reach 45 stores by end of this financial year.
Nykaa claims to offer 80,000-100,000 products from 1,000 brands on its online portal.
A Nykaa consumer spends on an average ₹ 1,500 and buys four items on an average, said Nayar. She said Nykaa is looking at categories like the Design Studio to increase its average consumer spending.
The $6.5 billion Indian cosmetics industry is estimated to grow to $20 billion by 2025 at a compounded annual growth rate of 25%, according to a 2017 report by RedSeer Consulting