As we continue to explore various transformative companies, dive into ventures that have reshaped their industries, we would like to turn our head to Nykaa, which itself has been turning heads since the giant it has become — another powerhouse from India (like Swiggy) it has revolutionised the beauty and lifestyle sector. Join us into a Nykaa deep-dive as through these stories, we’re spotlighting innovative brands which set new standards and go above and beyond.

Falguni Nayar and the Birth of Nykaa

From being a former managing director at Kotak Mahindra Capital Company to becoming the first Indian woman to head a unicorn startup, let’s dive deep into the world of Falguni Nayar and Nykaa. Falguni Nayar is an undeniable inspiration to all those who think it is too late to pursue their dreams. She founded Nykaa in 2012, at the age of 50, with a vision to create authentic and inclusive beauty products for all - a vision that the company upholds to this day. Her immense drive and unfaltering passion for beauty and wellness led to the establishment of one of India’s most influential cosmetic companies, which soon revolutionized the beauty industry.

Innovative Initiatives

Nykaa started as a simple e-commerce platform, aiming to bring global standards to the Indian market by offering a wide range of products under skincare, haircare, and other cosmetics. Under Falguni’s leadership, the company quickly grew as she implemented innovative initiatives unlike any seen before.

She started Nykaa Pro, a content and commerce platform specifically designed for beauty professionals. It offered exclusive access to many certified courses, workshops, tutorials, and various other resources to help them enhance their skills. They also partnered with Airblack, an Ed-Tech platform, for a beauty training course called The PROfessional Makeup Course.

Nykaa Network, another brilliant initiative, became India’s first interactive beauty forum. Beauty enthusiasts from all over the country were able to connect, share tips, and learn from each other. Today, the platform has gathered over a million subscribers who host various beauty-related discussions, chat, and ask each other questions. It also allows them to stay updated on the latest beauty trends and products.

Building Customer Loyalty

Launching Nykaa Pro and Nykaa Network was not only a successful marketing move but also a genius sales strategy. The premium memberships offered by these platforms additionally contributed to the income of the company. The primary source of income, however, were the product sales from its e-commerce platform as well as the physical stores. Another notable mention is Superstore by Nykaa, a B2B platform catering directly to retailers and beauty salons, allowing the stores to buy products in bulk at wholesale prices while simultaneously boosting Nykaa’s revenue.

Once the marketing was set, Nykaa focused on building a loyal customer base. To do this, they used data analytics, and based on the past browsing and purchase history of a customer, Nykaa made personalized recommendations which increased customer satisfaction. The high quality and wide range of products ensured that all customers had their specific requirements met. They also conducted beauty campaigns and produced content in collaboration with influencers on social media platforms like Instagram, Facebook, and Twitter to actively engage with the public and draw in potential customers.

Achievements and Challenges

The results of all this hard work were two of the most unforgettable achievements for Falguni Nayar. In 2020, Nykaa became the first Indian unicorn startup founded and headed by a woman. In October 2021, Nykaa went public with an IPO that raised ₹5,352 crores at a valuation of $7.4 billion, making it one of the most successful public listings in India.

However, these milestones were not achieved without challenges. Nykaa faced several complaints and lawsuits regarding the quality of their products and the lack of timely customer service. The bonus issue controversy led to very heavy criticism and allegations of weak governance within the company. A bonus issue is the allocation of additional shares to existing stockholders, which increases a company’s share capital but not its market capitalization. On November 11, 2022, Nykaa announced a 5:1 bonus issue right after their lock-in period for pre-IPO investors had ended on November 10, 2022. This led to significant backlash from retail investors and market analysts who questioned the timing and intent of the bonus issue.

The Road Ahead

Despite these controversies, Nykaa continues to be a very popular choice for beauty products among Indians. The company is consistently working on addressing and correcting these issues to regain their customers' trust. Falguni Nayar’s journey as a pioneering entrepreneur is nothing short of awe-inspiring. Her fiery passion and unwavering determination to follow her dream is the reason Nykaa stands where it is today, and it will only continue to innovate and grow further.

---