NYKAA AIMS TO BE PROF­ITABLE BY 2019

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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.

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