Nykaa, a leading e-commerce platform for beauty and personal care products, has taken a significant step forward by incorporating a new wholly-owned subsidiary, Nykaa Essentials Private Ltd. This strategic move aligns with Nykaa’s ongoing efforts to expand its footprint in the premium beauty market, catering to the growing demand for high-end cosmetics and skincare products in India.

Nykaa Essentials will focus exclusively on the beauty and personal care (BPC) retail segment, operating through both e-commerce and physical retail stores. The subsidiary has been incorporated with an authorized share capital of Rs 10 crore and a paid-up share capital of Rs 5 lakh. Its primary objective is to trade and distribute a wide range of beauty, skincare, healthcare, and lifestyle products.

Nykaa has been aggressively expanding its beauty segment, recording a 27% year-on-year revenue increase in Q3 FY25, with beauty-related earnings reaching Rs 2,060 crore. The company’s gross merchandise value (GMV) in the category rose 32% to Rs 3,389 crore. This growth reflects Nykaa’s successful strategy of focusing on premiumization, with a significant portion of sales from its physical stores coming from prestige beauty brands.

The establishment of Nykaa Essentials underscores Nykaa’s commitment to premiumization in the beauty category. Anchit Nayar, Executive Director and CEO of Nykaa’s beauty division, emphasized that rising consumer spending power is expected to drive demand for luxury beauty products. Nykaa is positioning itself to capitalize on this growth, leveraging its extensive network of 221 offline stores, including 47 new outlets added in 2024.

India’s beauty market is witnessing a surge in demand for high-end products, driven by increasing consumer spending power and awareness of premium brands. Nykaa’s focus on luxury beauty aligns with this trend, offering a wide range of premium brands through its online and offline channels. The company launched 200 beauty brands in 2024, further enhancing its offerings in the premium segment.

Nykaa’s incorporation of Nykaa Essentials marks a strategic expansion in the beauty and personal care sector, reinforcing its position as a leader in India’s luxury beauty market. By focusing on premium products and enhancing its retail presence, Nykaa is well-positioned to capitalize on the growing demand for high-end cosmetics and skincare in India.

Key Highlights:

• Nykaa has incorporated a new subsidiary, Nykaa Essentials Private Ltd, focusing on the beauty and personal care retail segment.
• The subsidiary aims to trade and distribute a wide range of beauty and skincare products through e-commerce and physical stores.
• Nykaa’s beauty segment saw a 27% revenue increase in Q3 FY25, with a GMV of Rs 3,389 crore, reflecting its focus on premiumization.
• The company has expanded its offline presence with 221 stores, leveraging its network to promote luxury beauty brands.