The newly incorporated entity has yet to commence business operations. Nykaa will hold 100% ownership in the subsidiary, and the incorporation does not fall under related party transactions.
Also Read: Nykaa shares surge to snap four-day losing streak; analysts bullish on long-term prospects
This move aligns with Nykaa’s broader strategy of enhancing delivery speed without significant capital outlays. The company has recently introduced ‘Nykaa Now,’ a quick-commerce initiative aimed at delivering fast-moving daily essentials within 30 minutes to three hours in select metro cities.In February this year, Nykaa’s founder and CEO Falguni Nayar said digital business remains strong amid soft consumer sentiment, driven by customer acquisition efforts and the use of artificial intelligence (AI) and machine learning for personalisation.
Nykaa’s physical store expansion is also progressing steadily, contributing to overall growth. Physical retail currently accounts for only 9% of the company’s omnichannel sales. “Beauty overall will grow a lot, and within that, e-commerce will grow, and so is the retail store environment. We are rolling out a number of stores,” she said.
Also Read: Nykaa Q3 Results: Net profit jumps 60.5% to ₹26 crore; Margin expands
The fashion vertical is a relatively new business, and Nykaa is working to control marketing costs while expanding the product assortment. Nayar said that over 70% of fashion customers are repeat buyers, and the company is strengthening its fashion portfolio by adding premium brands like Victoria’s Secret, Foot Locker, Calvin Klein, and Tommy Hilfiger.
Shares of FSN E-Commerce Ventures Ltd ended at ₹165.70, up by ₹3.20, or 1.97%, on the BSE.
