Last year in October 2015, Nykaa had raised $9.5 million, is also looking to raise Rs.90-100 crore in the next 6-10 months to support its private label business and expand into offline stores, Nayar said.
After introducing its private label bath and bodycare category recently, FSN Ecommerce Ventures lead Nykaa.com is seeking funds to expand its private label offering. The online retailer of beauty & fashion products looks to turn profitable in the next 10-12 months.
The firm, which will end this year with sales of Rs 80-100 crore, is likely to report revenue of Rs 240-300 crore by March 2017, said Falguni Nayar, Founder of Naykaa.com.
Last year, this 3-year-old start-up had raised $9.5 million and has moved into private labels with the launch of its nail paints in November 2015.
Brainchild of Nayar, a former investment banker, Nykaa’s private label move was triggered by the need to improve financial metrics as well as a gap in the market.
Elaborating on the same, Nayyar noted, “Customers are always looking for choices. Therefore, this launch of the native Nykaa beauty brand is in line with our long-term goal of offering quality products at value for money prices.”
After nail paints, bath & body products, Nykaa is expected to launch its signature kohl, lipsticks, perfumes and other cosmetics range in the next couple of months.
The company expects private labels to contribute about 15 per cent of overall revenues in the next three to four years.
Also present offline, Nykaa has opened its first store at Delhi airport and expected to open three more in Mumbai, Bengaluru and Delhi in the next quarter.
Reportedly, the brook & mortar Nykaa stores may generate 10 per cent of overall revenue by 2020.
The brand claims to get about five million monthly visitors on its website and generate 100,000 orders with an average basket size of Rs.1, 400. The Gross margins across categories range between 8-30 per cent, says the firm.
Nevertheless, the mobile app of Nykaa contributes 50 per cent sales of the company.
Nykaa, which until recently was getting 80 per cent of its business from women, is now addressing strong demand of male consumers and has future plans to expand its private label offerings in the men’s segment too, says media reports.
Popular items sold under this segment are hair care products, anti-dandruff items and the grooming range. With more than 400 brands and 40,000 products, Nykaa is currently available across 900 cities in the country.
Founded in 2012, Nykaa is backed by investors, including the family offices of Marico Ltd chairman Harsh Mariwala and Hexaware Technologies Ltd chairman Atul Nishar.