Nykaa Pushes The Pedal On Same & Next Day Deliveries, Claims 60% Orders Fulfilled In 110 Cities

As the quick commerce race heats up, beauty and fashion ecommerce major Nykaa claims to have stepped up its same day and next day delivery offerings, while also expanding the footprint of its warehouse network.

Addressing Nykaa’s 12th annual general meeting (AGM), its chairperson, MD and CEO Falguni Nayar said that as of now 60% deliveries are being made within the next day across top 110 cities.

“…These cities today account for two-third of Nykaa’s overall order volumes,” Nayar said, adding that in the top 12 cities, over 65% of all orders are fulfilled within the next day itself.

Looking to double down on its quick delivery service across the country, the company claims to have grown its warehouse network to 44 in FY24 from 18 in FY21. 

This expansion has reduced order-to-delivery times by 18%, fulfillment costs by 19%, and split shipments by 24% over the last financial year.

In addition to strengthening its logistics, Nykaa has reached the milestone of 200 physical stores across 72 cities, with 42 new stores opened in the last financial year, including in eight new cities.

However, earlier this month, Kotak Institutional Equities downgraded Nykaa’s rating from ‘add’ to ‘sell,’ citing rising fulfillment costs driven by faster deliveries. 

These costs have negatively impacted the company’s EBITDA margins. The brokerage also lowered its FY25-FY27 EBITDA estimates by 3%-7% for the fashion ecommerce giant.

It is pertinent to note that the Indian ecommerce landscape is intensifying as multiple players vie for a share of the fast-growing quick commerce sector, which has already captured 5-6% of the country’s total household grocery expenditure.

In the fashion commerce industry, Nykaa’s arch rival Myntra has also entered into the sector with 4 hour delivery. The Flipkart owned company is reportedly testing a four-hour delivery service in four Indian cities, including Bengaluru and New Delhi.