Now Nykaa is setting up a new branch in Saudi Arabia

Nykaa has set up a wholly owned subsidiary in Saudi Arabia, Nysaa Trading LLC, as part of a broader plan to expand its market beyond the country’s borders.

The newly established subsidiary will be engaged in the retail sale of women’s cosmetics, toiletries, beauty and hair care products, perfumes and cosmetic soaps in international and domestic markets.

Earlier this year, Nykaa opened its first Nysaa-branded brick-and-mortar store in Dubai, marking its entry into the international market

Specializing in e-commerce in the field of beauty and fashion Nykaa established a wholly owned subsidiary in Saudi Arabia — Nysaa Trading LLC — as part of a broader plan to expand its market beyond the country’s borders.

In a stock exchange filing today (September 20), the company said Nysaa Trading LLC is a wholly owned subsidiary of Nessa International Holdings, a subsidiary of Nykaa’s parent company, FSN E-commerce Ventures.

The newly established subsidiary will sell beauty and personal care products (BPC) in international and domestic markets through online and offline channels. These will include cosmetics, toiletries, beauty and hair care products, perfumes and cosmetic soap.

Nysaa Trading LLC has been registered with a share capital of 3 Lakh Saudi Riyal (approximately INR 6.67 Cr). Nessa International will hold 100% stake in Nysaa International and parent company Nykaa will indirectly hold 55% stake.

However, the newly formed subsidiary Nykaa is yet to commence business operations.

The development comes at a time when Nykaa is stepping up its efforts to grow its presence in the Middle East. In July this year established a wholly owned subsidiary in Qatar – Nysaa Cosmetics Trading.

Earlier this year, Nykaa opened the first stationary store under the Nysaa brand in Dubaimarking its foray into the international market. The Falguni Nayar-led company plans to invest USD 4.4 million in Nysaa.

Notably, in 2022, Nykaa partnered with Apparel Group, one of the largest omni-channel retailers in the UAE, to enter the Gulf Cooperation Council (GCC) region.

Nykaa plans to open 70 stores in the GCC market under the Nysaa brand in the next five years. The company aims to achieve a 7% share of the GCC cosmetics market during this period, the company said at its Annual Investor Day.

Nykaa’s bet on the GCC is not without reason. The region spends a whopping $500 per person on beauty and personal care products, one of the highest in the world.

At home, Nykaa has increased its same-day and next-day delivery offerings. At the company’s 12th annual general meeting, chairman and CEO Nayar said the company now delivers 60% of its orders the next day across 110 major cities, which is two-thirds of the company’s total orders.

However, earlier this month, Kotak Institutional Equities downgraded Nykaa from its previous ‘add’ to ‘sell’ rating while also reducing its fair value to INR 190 from INR 195 earlier. This would mean a fall of over 5% from the stock’s previous close.

Shares of Nykaa rose 1.22 per cent to settle at Rs 203.50 per piece on the BSE at 1:35 pm today.

Nykaa operates in the rapidly growing beauty and personal care market in the country, which is This is expected to become an opportunity worth over $28 billion by 2030.which accounts for 7% of the entire e-commerce market, according to Inc42 data.