Nykaa’s House of Brands portfolio spans both beauty and fashion brands the company developed or acquired.
The total revenue of beauty brands under this portfolio was INR468 crores (USD53.69m) in the third quarter, with year-on-year growth of 49%.
According to Adwaita Nayar, who heads the Nykaa House of Brands business, its own beauty brands have tripled in growth over last three years.
“We’re excited about this opportunity we have to build a house of brands at Nykaa. Until now, we’ve obviously been a strong retailer, and we have now set our eyes on an ambition of being a very strong house of brands as well,” said Adwaita Nayar CEO of Nykaa Fashion and Head of Owned Brands.
Nykaa’s top performing beauty brands are Nykaa Cosmetics, Kay Beauty, and Dot & Key.
Nykaa Cosmetics currently ranks among the top five makeup brands across Nykaa’s website.
“We’ve just taken Rasha Thadani on as our ambassador, which is a move that we’re excited about given she represents everything the brand represents, which is all about youthfulness and trends… As of Q3, it has crossed over INR440 crores (USD50.47m) of GMV from a run rate perspective annualised. And we’ve also been focused on increasing the physical footprint of this brand,” said Nayar.
She elaborated that a strong offline presence has been key to the growth of the brand over the last five to six years.
Today, the eponymous brand is available across 200 cities in 221 Nykaa stores and over 11,600 selective doors.
Tremendous growth
Nayar also highlighted the success it has achieved with Dot & Key which the firm acquired in 2021.
According to the firm’s reports, the brand has grown 15 times over the last three years.
This quarter, it recorded a net sales value (NSV) run rate of over INR500cr (USD57.34m).
Recognising the potential in Dot & Key, the firm has acquired more shares in the brand last June.
“From the perspective of how much we paid for it, we do believe that it was a good deal. Back in 2021, we acquired 51% for INR97 crores (USD11.13m). And just recently, we completed another 40% or so for INR265 crores (USD30.4m). And yes, and so we’re feeling quite good about where this brand is, and we continue to be really focused on leaning into this brand along with Nykaa Cosmetics in a big way going into next year,” said Nayar.
Kay Beauty, which was also developed and launched by Nykaa, recorded gross merchandise value (GMV) of INR330Crs (USD37.8m).
“In Q3FY22, it was just about INR100 crore brand, and now it is crossing INR330 crores. So again, 4x growth in just a matter of a couple of years,” said Nayar.
“This brand is actually one of the fastest-growing brands on the platform, and we feel excited about having built this brand completely from scratch. And so, we’re really honing our skills as brand builders within, obviously, the larger ecosystem of Nykaa.”
