Nykaa reports strong growth across segments in Q4FY24; expects revenue growth in “high twenties” for next quarter
Upstox
2 min read • Updated: April 8, 2024, 3:08 PM
Summary
The gross merchandise value of the Beauty and Personal Care vertical is anticipated to rise up to 30% YoY, with net sales value witnessing a “mid-twenties” growth year-on-year, surpassing industry standards.
Nykaa (FSN E-Commerce Ventures Limited) has reported a strong acceleration in growth in the fourth quarter of FY24. At a consolidated level, the company's gross merchandise value (GMV) increased by over 30% year-on-year (YoY). Nykaa expects its net sales value (NSV) and revenue growth to hit “high twenties” for the coming quarter. For FY24, the company expects revenue growth in the mid-twenties on a YoY basis, which marks a huge milestone for the company.
Nykaa attributed this success to its customer acquisition team, platform conversion and user engagement divisions as their efforts resulted in healthy order volume growth, reflecting a huge customer demand. A successful "Pink Love Sale" held throughout the quarter contributed to the growth of Nykaa's primary business segment, the Beauty and Personal Care (BPC). The GMV of the BPC vertical is anticipated to rise up to 30% YoY, with NSV witnessing a “mid-twenties” growth on a YoY basis, surpassing industry standards.
Nykaa Fashion was able to continue the upward trend that had been observed during the previous two quarters. The NSV for the Fashion vertical is expected to rise in the “mid-twenties” on a YoY basis, while its GMV is expected to rise in the “high twenties” YoY. Nykaa Fashion's exceptional performance has been ascribed to its focus on sustainable expansion, high-end products, and exceptional client acquisition.
Superstore by Nykaa, an eB2B platform, is the key player in the "Others" segment, which has shown remarkable growth. The GMV of this segment is anticipated to increase by more than 60% YoY, and the NSV is anticipated to increase by around 80% YoY.
Nykaa is a consumer technology firm that was founded in 2012. Through its online stores Nykaa, Nykaa Fashion, Nykaa Man, and Superstore by Nykaa, the company sells a variety of cosmetics, fashion, and lifestyle products. As of December 31, 2023, Nykaa had over 174 outlets in India, demonstrating its presence in the retail market.