India is getting its Billionaire and second richest self made women in NYKAA’s founder

Nykaa, an online supplier of beauty products, was doing well as the Covid-19 outbreak hindered companies from airlines to tourism. Due to pandemic-related restrictions, hordes of consumers went to its virtual shelves, buying everything from skin treatments to lipsticks. Nykaa intends to record a 40% increase in revenue for the fiscal year ending March 2021 up from $247 million in March 2020.

The cosmetics retailer is preparing for an IPO this year that is projected to value it at approximately $3 billion, with backers including Boston asset management firm Fidelity Management and private equity firm TPG Growth Capital.

But, even before that, Nykaa's latest investment round, which is slated to finish by the end of the month, will almost certainly drive its creator Falguni Nayar into the billionaire ranks, making her India's second-richest self-made woman after biopharma billionaire Kiran Mazumdar Shaw.

Nayar, who owns a little more than half of the beauty retailer, did not discuss her net worth or the fund-raising.
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According to Gurgaon-based consulting firm Technopak, the Indian beauty and personal care market is predicted to rise to $23 billion by 2023, up from $13 billion in 2018. This growth would be fueled by increased wages among young Indians.

Saloni Nangia, president of Technopak, believes Nykaa has become synonymous with beauty items. “It recognised the appropriate trend because India had never had a consolidated beauty play before. There were always a variety of formats available, but they were all on a modest scale.”

After leaving her job as the head of Kotak Mahindra bank's investment banking business in 2012, Falguni Nayar founded Nykaa at the age of 49. She thought the moment was right for an Indian counterpart of Sephora, the multinational cosmetics brand, using $2 million in startup funding from family funds.

Nykaa, which is derived from the Sanskrit term "Nayaka," which means "one who is in the spotlight," began as an online retailer and then grew into distribution stores. The company now has 70 locations in 34 cities, with 60 million monthly users to its website and app.

Nykaa shook up the Indian cosmetics industry by offering high-end brands like Clinique and Bobbi Brown online. Nykaa established a reputation for quality and authenticity in a market saturated with counterfeit cosmetics by sourcing items directly from approved wholesalers. Falguni Nayar was able to establish an unending aisle of products from all over the world because to the online platform; Nykaa now has over 700,000 products.

Nayar has avoided discounting in favour of marketing methods such as influencer-driven beauty blogs that provide information on new items and trends. She added bricks to clicks by launching the first Nykaa store in Delhi in 2015, after realising that clients prefer to touch, feel, and test on cosmetics before purchasing them.

Angad Banga, son of Harry Banga, whose Hong Kong-based family business owns a 10% stake in Nykaa, says, “It has been wonderful witnessing Nayar move smoothly from one of India's premier investment bankers to a brilliant entrepreneur in the beauty, fashion, and technology space.” (Angad used to work at KKR with Falguni Nayar's husband, Sanjay Nayar, who oversees the firm's India unit.)

Nayar's entrepreneurial journey has not been easy. As she traversed the worlds of beauty, technology, and retail, she faced a steep learning curve. In the first four years, three chief technology officers resigned. Despite her banking experience, Nayar found fund-raising difficult at first—a far cry from the current situation, in which she is being courted by investment banks interested in listing her company.

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Today, she's up against a slew of rivals, including billionaire Chandru Raheja's department store chain Shoppers Stop and Amazon, which has carved itself a significant online presence in India. However, Nayar, whose family has always been supportive of her beauty business, has both of her 30-year-old twins on her team.

Son Anchit is in charge of the online business, while daughter Adwaita, who was previously the chief operating officer of Nykaa, is now the CEO of the company's fast-growing clothing outlet Nykaa Fashion.

Nykaa formed a collaborative venture with Bollywood actress Katrina Kaif named Kay Beauty in 2019 to develop a new cosmetics line to add buzz to its services. According to Technopak's Nangia, India's expanding beauty industry isn't going anywhere anytime soon.

“The digital acceleration that Covid-19 has brought about is here to stay,” she says. “Every beauty product and wellness company will benefit.” Falguni Nayar will have to get used to being in the spotlight.