Nykaa’s Middle East Push: Incorporates New Subsidiary In Qatar To Sell Products

As part of beauty ecommerce major Nykaa’s Middle East push, its step-down subsidiary Nessa International Holdings has incorporated a wholly-owned subsidiary in Qatar – Nysaa Cosmetics Trading.

In an exchange filing, Nykaa said, “… Nessa International Holdings Limited, a stepdown subsidiary of the Company, has incorporated a new wholly owned subsidiary in Qatar by the name ‘Nysaa Cosmetics Trading’, a single-member Limited Liability Company.”

Nysaa Cosmetics will be engaged in international exports and sale/ trade/ retail of beauty and personal care (BPC) products, both online and offline, and other related activities.

It will trade in women’s cosmetics, toiletry, beauty and hair care products, perfumes, and beauty soaps, the company added.

Nykaa partnered UAE-based Apparel Group in 2022 to enter the Gulf Cooperation Council (GCC) region.

In March this year, the company launched a Nysaa-branded store in Dubai. The store offers international brands such as Kylie Cosmetics, Kay Beauty, Rituals, Stila among others.

Nykaa aims to open 70 stores in the GCC market under the Nysaa brand in the next five years. The company aims to achieve a 7% share in the GCC prestige beauty market in this period, the company said during its ‘Annual Investor Day’.

In terms of domestic business, Nykaa expects its beauty business to grow at a compounded annual growth rate (CAGR) of mid-to-late 20% till FY28.

The Falguni Nayar-led company expects its fashion vertical to grow to 2.5-3X over the next three years. In an investor presentation, the company said that the vertical will turn EBITDA positive in the near future but didn’t mention an exact timeline for achieving the same.

Nykaa’s consolidated net profit rose 80% year-on-year (YoY) to INR 69 Cr in FY24, while operating revenue grew 24% to INR 6,385.6 Cr.