Beauty and fashion e-retailer Nykaa is significantly scaling up its quick commerce operations, with its “Nykaa Now” fast delivery venture now expanded to seven major cities across India. The move, announced through regulatory filings, underscores Nykaa’s aggressive push into the rapid delivery segment, promising consumers order fulfillment within an impressive timeframe of 30 to 120 minutes.
Nykaa, operated by its parent company FSN E-Commerce, first piloted its quick commerce service in October 2024. The rapid expansion to seven metropolitan centers reflects strong traction and a strategic focus on meeting the growing consumer demand for expedited delivery of beauty and personal care products. To support this ambitious delivery promise, “Nykaa Now” leverages a robust network of more than 40 rapid store counts strategically located across these seven metro cities.
The beauty and personal care (BPC) segment, in particular, is witnessing a surge in quick commerce adoption. Nykaa’s founder, Falguni Nayar, had previously indicated the company’s focus on a 2-hour delivery window, emphasizing that “most likely delivery timelines of 60 minutes” is a more sustainable approach for the beauty quick commerce business. This strategy aims to balance speed with the nuanced nature of beauty product purchases, which often involve more thoughtful selection, such as choosing the correct foundation shade.
Strategic Expansion and Market Impact
While the exact list of all seven cities has not been explicitly detailed in recent reports, earlier pilot phases included key metros like Mumbai, Delhi, and Bengaluru. This expansion aligns with Nykaa’s broader strategy to enhance its omnichannel presence. In addition to bolstering quick commerce, Nykaa is simultaneously strengthening its physical retail footprint, having opened 237 stores across 79 cities to date.
Nykaa’s beauty vertical has demonstrated significant growth, with its Gross Merchandise Value (GMV) jumping 30% to about ₹11,780 crore in FY25. The company reported a remarkable 9-fold increase in premium customer annual consumption in FY25, with the top 10% of customers spending an average of $395 (approximately ₹34,120) annually. This suggests that the quick commerce offering is targeting a customer base that values both speed and premium products.
The expansion into quick commerce is a direct response to the evolving e-commerce landscape, where rapid delivery services from players like Blinkit, Zepto, and Swiggy Instamart are increasingly capturing market share, including in the beauty and personal care categories. Nykaa’s move aims to maintain its competitive edge by offering a wide assortment of products available for quick delivery, which it considers a significant differentiator against other rapid delivery platforms.
This strategic investment in logistics infrastructure, including a network of rapid warehouses, is designed to ensure efficient and profitable operations for the quick commerce model. Nykaa’s high average order values in the beauty segment are expected to allow the company to expand these logistics efficiently, aiming for profitability even in faster delivery segments. As Gen Z continues to drive substantial growth in the lifestyle category—with spending projected to jump from $0.9 trillion in FY25 to $1.4 trillion by 2030—Nykaa’s focus on rapid fulfillment is well-positioned to capitalize on this expanding market.
Key Highlights:
- Nykaa Now Expands to 7 Cities: Nykaa’s quick commerce service, “Nykaa Now,” has expanded to seven major cities, promising beauty and fashion product deliveries within 30-120 minutes.
- Leveraging Rapid Store Network: The expansion is supported by over 40 rapid store locations strategically placed in these metro cities to facilitate swift order fulfillment.
- Strategic Response to Market Demand: This move aims to cater to the growing consumer demand for fast delivery in the beauty and personal care segment, aligning with CEO Falguni Nayar’s focus on a sustainable 60-minute delivery model.
- Reinforcing Omnichannel Presence: The quick commerce push complements Nykaa’s broader growth strategy, which also includes expanding its physical store network (237 stores in 79 cities) and capitalizing on strong growth in its beauty vertical.