Nykaa Sets Up ‘Nykaa Essentials’ to Boost Beauty & Personal Care Business

13 Mar 2025 , 02:30 PM

Nykaa’s parent FSN E-Commerce Ventures Ltd on March 11, 2025, stated that it had incorporated a wholly owned subsidiary Nykaa Essentials Private Ltd. The joint venture, registered as a subsidiary in the beauty and personal care (BPC) retail sector, will operate from Mumbai, Maharashtra.

The new entity Nykaa Essentials Private Ltd will enable the group to leverage e-commerce as well as physical retail, with a vast array of products such as cosmetics, toiletries, personal care, healthcare, lifestyle and perfumery items being rammed through the e-commerce store.

At the time of writing on March 13, 2025 at 12:25 pm shares of FSN E-Commerce Ventures Ltd is currently trading at ₹164.30 which is a 0.024% dip than the previous close. The stock has gained a total of 9.97% gain than the previous close, and 3.5% dip in the last one month.

Nykaa will now have 100% ownership of Nykaa Essentials, retaining overall control over its operations and business. The subsidiary is yet to start its business operations and the incorporation does not fall under related party transactions. Nykaa Essentials will also help Nykaa further its strategic goal of improving speed of delivery while reducing operational costs.

Nykaa recently also announced ‘Nykaa Now’, a quick-commerce offering, to deliver fast-moving daily essentials from the neighbourhood stores in 30 minutes to three hours in select metro cities, as part of its expansion.

Despite soft consumer sentiment, the company continues to witness strong growth in digital business, driven by customer acquisition initiatives and AI-led personalization strategies, Nykaa Founder & CEO Falguni Nayar said earlier this week.

Nykaa’s physical retail business is growing at a steady pace but it still accounts for 9% of the firm’s overall omnichannel sales. Nykaa is ambling online retailing through the addition of new stores, which aligns with its physical retail expansion.

Besides the beauty and personal care vertical, Nykaa is also in the process of scaling its fashion business, eyeing a larger pie of the premium international brands. To serve high-value customers, it has onboarded well-known global brands like Victoria’s Secret, Foot Locker, Calvin Klein, and Tommy Hilfiger.

More than 70% of Nykaa’s fashion customers are repeat customers, indicating high levels of consumer trust and brand loyalty. As the company expands its product offerings while maintaining control over marketing costs, “we feel like we can maintain long-term sustainable growth in beauty and fashion both.”