The Queen of India’s $28B Beauty Market: Nykaa’s Story
Back in 2012, when Falguni Nayar stepped away from a successful banking career, many wondered why someone at the top of her profession would leave spreadsheets behind for the beauty business. Her answer was simple yet powerful: “I wanted to stand for those women who want to be beautiful for themselves, not for men or other women.” And with that belief, Nykaa was born. From a small digital idea, Nykaa has turned into a household name in beauty and lifestyle and now reaches millions across India. The early years were all about experimenting and building trust.
The journey began online, but by 2015, Nykaa was already stepping into physical stores.
At a time when most believed beauty could only be an e-commerce play, Nayar doubled down on omnichannel.
Today, Nykaa’s offline presence has expanded into a network of over 280 stores across India.
The North leads with 81 outlets, followed by the South with 60, the West with 54, while the East and Central regions add 31 and 11 stores, respectively.
They have 7 flagship stores that showcase Nykaa’s full range and 76 luxe stores catering to premium beauty.
But Nykaa never intended to stay in one lane.
In 2016, it launched Nykaa Cosmetics, and by 2018, it had expanded into fashion through Nykaa Fashion and even men’s grooming with Nykaa Man.
Fast forward to FY25, and the platform now hosts over 8,600 brands, up from over 6,000 just two years ago.
By 2020, Nykaa had joined the Unicorn Club after raising ₹100 crore, becoming India’s first unicorn led by a woman.
The next year became one for the history books as Nykaa’s IPO raised ₹5,352 crore at a $7.4 billion valuation.
The response was overwhelming, and the issue was subscribed 82 times, making it the most successful among large Indian startup IPOs.
By FY25, Nykaa’s GMV had crossed ₹15,000 crore across platforms, growing more than 25% year on year and proving that its momentum was more than just a fluke.
But behind Nykaa’s rise lay a deeper gap in India’s beauty market.
This was a $28 billion industry, yet more than 70% of sales were unorganised.
Nykaa’s strength has always been clear, which was giving customers authentic products in a market full of counterfeits, and bringing global brands to smaller cities where choices were once very limited.
In just three years, the customer base grew more than two times, from 33 million in FY24 to 42 million in FY25.
And these customers kept coming back.
Orders more than doubled in three years, reaching 62 million in FY25 as compared to 27 million in FY2021-22.
Beauty orders alone jumped from 26.5 million in FY22 to 54.5 million in FY25, while fashion orders grew from 5.1 million to 7.6 million over the same period.
Along the way, customers also began spending a little more with every purchase, with average order values rising steadily across both beauty and fashion.
Nykaa’s growth also shows clearly in its numbers.
Revenue from operations rose from ₹6,386 crore in FY24 to ₹7,950 crore in FY25. Profits moved up as well, with profit after tax increasing from ₹40 crore to ₹72 crore over the same period.
But the beauty market is getting crowded.
Reliance Retail has entered with Tira, offering both luxury and affordable beauty with the strength of 800+ brands.
Purplle has become a strong challenger and is building a personalised shopping experience with over 1,000 brands, especially for millennials.
And then there is Tata CLiQ, backed by the Tata name, combining 1,000 authentic brands with expert advice from influencers.
The change in GST has also given Nykaa an extra boost.
With tax rates on beauty products and services now coming down from 18% to just 5%, prices are now more affordable for a wider set of customers.
Lower costs mean bigger shopping baskets during festive seasons and stronger demand across both mass and premium segments.
This shift ties back to what Nykaa has always stood for, which was making beauty more accessible and trusted.
From an online idea in 2012 to a unicorn led by India’s first woman founder-CEO, it has reshaped a $28 billion market.
Yes, competition is stronger than ever, and the stock has had its ups and downs, but Nykaa’s journey is still unfolding.
As the market grows, so do the opportunities, and Nykaa remains at the centre of it.
Sources:
- Nykaa Investor Presentation Q4 2025
- Nykaa Annual Report 2024-2025
- Nykaa Integrated Report 2023-2024
- Moneycontrol
- Economic Times
- Times of India
- Motilal Oswal
- Nykaa Annual Report 2021-2022
- Nykaa Annual Report 2022-2023
- Nykaa Press Release
- Financial Express
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