“Nykaa’s In-House Beauty and Fashion Brands Experience Growth in Q3 FY23”

• ByStartupStory     |    February 14, 2023

Nykaa, which had promised to become a “house of brands” more than a year and a half ago, has revealed in its Q3 FY23 financials how it plans to create, acquire, and scale a “portfolio of independent and new age consumer-first brands.” This move is a prominent feature of Nykaa’s Q3 pitch.

According to Nykaa’s Q3 FY23 financials, its owned BPC brands contributed INR 224.7 Cr to the startup’s total gross merchandise volume (GMV), marking a 29% YoY increase from the previous year’s INR 174.6 Cr. In the nine-month period ending in December 2022, Nykaa’s BPC brands generated INR 587.6 Cr in GMV, up from INR 380 Cr during the same period in the prior year. Nykaa’s beauty brands accounted for approximately 12% of the company’s BPC GMV reported in Q3 FY23. In Q3 FY23, Nykaa Cosmetics had an estimated annual GMV run rate of INR 250 Cr, while Kay Beauty and Dot & Key had an annualised GMV run-rate of more than INR 120 Cr each.

As of December 2022, Nykaa owned 10 beauty brands with over 2,000 active stock keeping units (SKUs). In Q3 FY23, Nykaa expanded the distribution of its in-house BPC products to 2,554 general trade and modern trade stores, a 49% YoY increase from the previous year. Of these, 2,405 were GT while 149 were MT outlets across India. Additionally, Nykaa’s in-house BPC products were sold to more than 4,000 retailers via the eB2B vertical during the quarter. The period also saw the launch of several new BPC products, including fragrances, sunscreens, body oils, and lotions.

Nykaa has expanded its owned-brand strategy beyond the beauty category, with the number of in-house fashion brands increasing from 8 in Q3 FY22 to 12 by the end of December 2022. The company also introduced Nyri, an Indian-wear brand, in response to growing demand in the sector.

Nykaa-owned fashion brands experienced significant growth in Q3 FY23, with a gross merchandise volume (GMV) of INR 90.1 Cr, a 2.2X increase from INR 40.6 Cr in Q3 FY22. Between April and December 2022, Nykaa’s in-house fashion brands generated INR 238.7 Cr in GMV, a 2.6X increase from the previous fiscal year’s INR 90.6 Cr.

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