NYKAA AIMS TO BE PROFITABLE BY 2019
Online retailer of beauty brands,
Nykaa expects to become profitable by March 2019, helped by a growing offline presence and larger portfolio of premium and luxury products. The company, which was founded by former investment banker Falguni Nayar, expects to become cash-flow positive by March 2018. “We have a very low burn rate. We haven’t engaged in much advertising but transactions have grown steadily with new customers and repeat buyers. We expect our revenues to grow 2.5X-3X this year…by next fiscal, we should be profitable,” Nayar told PTI. Nykaa had started as an online platform and moved into offline retail as well. It already has eight stores in Delhi- NCR, Mumbai, Bengaluru, Amritsar and Pune.
“We are aggressively looking at expanding our offline presence. We have eight stores under the ‘Luxe’ and ‘On Trend’ categories, which are companyowned,” says Nayar.
The Luxe stores would have mostly luxury and premium brands, while On Trend stores will carry a portfolio of brands that trend on Nykaa’s online platform. By the end of this fiscal, Nykaa is looking at a footprint of 15 stores, she said adding that they are also looking at cities like Hyderabad and Chennai apart from deepening presence in the four cities where it already has stores. Asked about the investment planned, Nayar said Nykaa would invest about ₹10 crore in these stores apart from the costs of the inventory. Nykaa had closed a funding round of ₹104.3 crore in December last year.