Five Top Executives Resign from Nykaa Amid Pressure on Beauty Retailer’s Stock Price

• ByStartupStory     |    March 25, 2023

Top leaders exit Nykaa: Chief Commercial Operations Officer, Chief Business Offer of Nykaa Fashion, Chief Executive of Wholesale Business, and VPs of Nykaa Fashion’s Owned Brands and Finance resign. Nykaa experiences a significant management shakeup as five leadership team members resign in 2023.

Nykaa’s chief financial officer, Arvind Agarwal, had resigned from the company in November last year and joined PayU. In response to recent senior-level departures, a Nykaa spokesperson stated, “Voluntary and involuntary exits are expected in a fast-paced, growth-focused, consumer tech organisation with over 3,000 on-roll employees, like Nykaa.” The spokesperson added that some of the departures were a part of the standard annual appraisal and transition process, where employees leave due to performance or to pursue other opportunities.

The departure of senior leaders has occurred during a period of declining stock prices for the Mumbai-based company, similar to other new-age firms. Nykaa’s stock has fallen by approximately 28% since it offered bonus shares on November 16th, 2022. The online beauty and personal care market is facing increased competition, with the launch of Reliance Retail’s Tira, new entrant Tata Cliq Palette, and other players such as Sephora, SS Beauty by Shopper’s Stop, and Myntra all focusing on the beauty and personal care category. Despite growing revenue from operations, Nykaa reported a 71% YoY decrease in consolidated net profit to Rs 8.48 crore for the quarter ended December 31, 2022.

Falguni Nayar, the executive chairperson of Nykaa, defended the company’s 71% year-on-year fall in consolidated net profit for the quarter ended December 31, 2022. She stated that the performance was good, considering the backdrop of fewer festive days in the October-December period. Nayar also mentioned that the momentum continued in January and February. However, some growth was shaved off due to a slowdown in discretionary spending. Nayar highlighted that year-on-year comparisons governed many listed company comparisons and growth had to be on top of a strong number from the previous year’s quarter.

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