Nykaa ramps up same-day and next-day delivery

Beauty marketplace Nykaa is ramping up its same-day and next-day delivery initiatives.

“We have expanded this offering over the last few months and today, within the top 12 cities in the country, over 65% of all orders are fulfilled within the next day itself,” noted Falguni Nayar, Chairperson, MD & CEO of Nykaa, at the company’s 12th annual general meeting (AGM) held on Wednesday.

For the top 110 cities, 60% of all orders are fulfilled within the next day itself. These cities account for over two-thirds of Nykaa’s overall order volume, said the company.

The company, which counts Reliance-backed Tira as its peer, also said its eB2B venture, Superstore By Nykaa, has now expanded to over 1,000 cities, from 300 cities two years ago.

This segment observed improvement in unit economics over the course of the year, driven by higher gross margins, improved fulfillment costs led by economies of scale, as well as a concerted regionalization. strategy.

The company expects the overall fashion market to grow at 11% CAGR until 2030, becoming a $200-billion dollar market, with $50 billion online. Within this, the premium fashion market is expected to grow to $10 billion by 2030.

According to the company, the Indian beauty market will grow at a CAGR of 11% till 2037, leading to a market size of over $90 billion. Of this, $40 billion will be online, it said.

Nykaa expects ecommerce penetration for beauty to increase to a “whopping” 45% in the future, close

to half the entire market. It also expects a much faster growth in the premium beauty category.

FSN E-Commerce Venture, the parent company of Nykaa, clocked a 120% rise in profit after tax at Rs 14.24 crore during the first quarter of FY25, compared Rs 6.45 crore in 2023. It posted a 23% increase in operating revenue at Rs 1,746 crore from Rs 1,422 crore a year ago.