Nykaa Expects 10% YoY Growth From Middle East Biz

A few months after launching omnichannel beauty platform Nysaa in the Gulf Cooperation Council (GCC) region, beauty ecommerce unicorn Nykaa said it is vouching for 10% year-on-year growth in the region. 

During the fourth quarter analyst call of FY24, the company said that it sees great potential in the Middle East region with significant business opportunities. 

Projecting this in numbers, the company said that its beauty and personal care market size in GCC is worth $30 Bn. Moreover, GCC boasts of $500 per capita spend on beauty and personal care products, one of the highest in the world. 

In FY24, Nykaa entered into a strategic alliance with UAE-based Apparel Group and looked to take its omnichannel approach to the Middle East. Incidentally, the Apparel Group has a network of more than 2,200 retail stores across the UAE, Saudi Arabia, Qatar and Kuwait.

First, Nykaa launched its ecommerce platform Nysaa in association with Apparel Group in January this year. Nykaa holds a 55% stake in Nysaa whereas the remaining 45% stake is with Apparel Group. 

In February, Nykaa announced an investment of $1.9 Mn in Nysaa through its subsidiary FSN International. 

The company also launched a Nysaa-branded store in March in Dubai, marking the unicorn’s first retail foray internationally. The store offers international brands such as Kylie Cosmetics, Kay Beauty, Rituals, Stila among others. 

This development comes close to the beauty giant experiencing a 48% dip in consolidated net profit on a QoQ basis to INR 9.07 Cr from 17.45 Cr in Q3 of FY24.  However, on a YoY basis, Nykaa’s net profit more than doubled from the INR 4.27 Cr it reported in Q4 FY23. 

For the full fiscal year FY24, the company’s net profits grew by 80% to INR 69 Cr from FY23’s 38.39 Cr. In tandem with the spike in profits, its operating revenue for the full year also grew 24% to INR 6,385.6 Cr from last fiscal’s INR 5,143.8 Cr.