Nykaa Shares Rise About 4% After Foray Into Men’s Innerwear Category

Shares of FSN E-Commerce Ventures, the parent company of beauty ecommerce platform Nykaa, closed about 4% higher at INR 1,453.9 on the BSE on Thursday (July 7), a day after the beauty ecommerce platform announced its foray into the men’s innerwear and athleisure category.

In the intraday trading, the shares of FSN E-Commerce rose as much as about 5% to INR 1,469.9, its highest since June 27, before giving up some of the gains.

On Wednesday, Nykaa Fashion announced its foray into the new categories with brand GLOOT. While the underwear range will start from INR 499, athleisure will begin from INR 899.

Nykaa, founded by Falguni Nayar in 2012, has become the go-to ecommerce platform for fashion and beauty products. It competes with the likes of Amazon, Flipkart, Myntra, and Purplle. As of March 31, 2021, Nykaa Fashion housed 1,350 brands and over 1.8 Mn SKUs across women, men, kids, luxe and home categories.

Gajra Gang, Nykd by Nykaa, Pipa Bella, Twenty Dresses, Likha, IYKYK, Kica and RSVP are among the other consumer brands under Nykaa Fashion.

Nykaa made a stellar market debut in November last year. On the NSE, its shares listed at INR 2,018, about an 80% premium over the issue price of INR 1,125. On the BSE, shares listed at INR 2,001 apiece.

The startup reported a 58% year-on-year (YoY) decline in its consolidated profit after tax (PAT) at INR 7.6 Cr in financial year 2021-22 (FY22).

Its operating revenue grew 31% to INR 973.3 Cr from INR 740.5 Cr a year ago, while gross merchandise value (GMV) of its fashion vertical grew 168% YoY to INR 1,751 Cr in FY22.

Nykaa shares are down over 27% as of July 7 from their listing price.

As per a recent report by Research and Markets, India’s beauty and personal care market is estimated to reach $33.33 Bn by 2027, growing at a compound annual growth rate (CAGR) of 6.32%. In 2022, the market was valued at $24.53 Bn.