Nykaa Witnessed Growth Across All Its Businesses: Expects Higher Business Momentum

The consumer tech company Nykaa or FSN E-Commerce Ventures Limited recently released a quarterly update for the quarter ended March 31, 2024. During the quarter, the company witnessed strong GMV growth of the early thirties at a consolidated level on a YoY basis.

The company continues to generate long-term beauty consumption growth in India. During the quarter, it experienced momentum across key drivers of customer acquisition, platform conversion, and user-level growth. As a result, the company recorded healthy order volume growth, indicating robust customer demand. Overall, beauty and personal care (BPC) growth has been fueled by strong offtake from important categories, including beauty and skincare, and a very successful “Pink Love Sale” during the quarter.

Nykaa Fashion has continued its strong growth pace over the last 2 quarters despite the slower growth of the industry overall. Nykaa Fashion’s success is attributed to its emphasis on sustainable growth, premium and unique goods, and high-caliber customer acquisitions. This is demonstrated by the target categories’ and core customer segments’ superior success during the quarter in comparison to overall growth. The other vertical, which predominantly constitutes Superstore by Nykaa (eB2B platform), continues to scale exponentially.

Looking Ahead

FSN E-Commerce Ventures Limited expects Net Sales Value (NSV) and revenue growth for the quarter is likely to be in the high twenties on a YoY basis. The BPC vertical GMV for Q4 is likely to grow around 30%, and NSV growth is anticipated to be in the mid-twenties on a YoY basis. The company anticipates GMV for the fashion vertical to grow in the high twenties, and NSV growth is expected to be in the mid-twenties on a YoY basis. In addition, the other vertical’s GMV growth for Q4 is expected to be in the mid-sixties, and NSV growth is likely to be around 80% on a YoY basis.

About Nykaa (FSN E-Commerce Ventures Limited)

FSN E-commerce Ventures Ltd is a digitally native consumer technology platform. The company operates a diverse portfolio of beauty, personal care, and fashion products, including owned brand products manufactured by it. On April 08, 2024, the shares of the company opened at ₹173.05 and touched the day high of ₹177.70 at 09:35 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.