Reliance Retail ventures into online cosmetics business ahead of Nykaa’s IPO
- ByAyushi Ray | September 27, 2021
Reliance Retail ventures into online cosmetics business ahead of Nykaa’s IPO. The launch of its fashion portal Ajio in 2016 marked its first step into India’s rapidly expanding e-commerce segment, a move it followed with its e-grocery venture JioMart in 2019. This was followed by a raft of acquisitions across segments. According to a report by The Economic Times, which surfaced last week, now, the company has set its sights next on the online cosmetics and personal care products segment, which has brands such as Nykaa and Purplle as well as marketplaces like Amazon and Flipkart.
The overall beauty and personal care market in India, including physical stores and online channels, is valued at $14-15 billion and is likely to grow at a compound annual growth rate (CAGR) of 8 percent over the next five years, according to Euromonitor. A Jefferies report pegs the value of the online segment at 5-6 percent of the overall market, which would translate to $800 million in revenue. Nykaa, with revenue of $250 million in FY2020, accounts for more than 30 percent of the online market, says the Jefferies report. The company reportedly has 15 million registered users, 5 million monthly active users (MAUs) and fulfils over 1.5 million orders per month. This makes the vertical marketplace the largest beauty and personal care retailer in India.
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