Top interesting facts about Nykaa

Undoubtedly, India is becoming a hub of startups for the world. There are over 60000 startups emerging in India as of 2021. By reaching this figure, India is now the third-largest start-up ecosystem in the World. Indian entrepreneurs are working so well, that a total of 44 startups became unicorns in the year 2021. In today’s article, we’ll talk about one of the great unicorn startups of India i.e Nykaa. Nykaa is basically an e-commerce platform with beauty and cosmetic products as its key products.

Besides, this company was founded by Falguni Nayar in the year 2012. Falguni Nayar is an ex-Managing Director of Kotak Mahindra Bank and an alumnus of the prestigious IIM Ahmedabad. She saw that there is inconsistency in the beauty and cosmetic market in India. Moreover, by analyzing this as a major problem, she founded Nykaa as a Business Solution. As she started Nykaa, the company encounter tremendous growth every financial year. Currently, the total company valuation of Nykaa is over $14 billion and increasing. There are more interesting things about Nykaa that you should know about. So, here we present you with such interesting facts about Nykaa that you probably didn’t know before.

1. The meaning of ‘Nykaa’

What's the meaning of Nykaa

 The most crucial thing in establishing a company is deciding its name. The company’s name itself defines the vision and work of the company and the same goes for ‘Nykaa’. The word ‘Nykaa’ is basically a Sanskrit word that means ‘Beauty’ or ‘a woman in the spotlight’. Besides, the word ‘Nykaa’ clearly defines the vision of the company that it is crucially dedicated to Women.

2. Shareholdings of Katrina Kaif and Alia Bhatt

Image of Alia Bhatt and Katrina Kaif

Do you know that Bollywood actresses Katrina Kaif and Alia Bhatt had invested in Nykaa way before its IPO? In 2018, Katrina kaif invested an amount of Rs. 2.02 crores. In 2020, Alia Bhatt invested an amount of Rs. 4.95 crores in Nykaa. In November 2021, Nykaa launched its IPO and got listed on the stock market with a bumper opening. The shares of FSN E-commerce (parent company of IPO) were subscribed nearly 82 times on the day of IPO. With this huge opening, the shareholdings of Alia Bhatt and Katrina Kaif rose to nearly 10 times. Besides, the shareholding of Katrina kaif rose from Rs.2.02 crores to Rs.20 crores.

Watch Video: Katrina Kaif during Nykaa’s Listing ceremony

3. Only Indian unicorn headed by a woman

Image of Nykaa Founder

Nykaa is a company that is mainly dedicated to the vision of women’s empowerment. The CEO of the company Mrs.Falguni Nayar is the best example and inspiration for the women that even women can also hit the market with her entrepreneurial skills. You’ll be surprised to know that Nykaa is the only unicorn startup in India that is headed by a woman. Currently, Nykaa is operating its business with a valuation of over $13 billion under the leadership of Great businesswoman Falguni Nayar.

4. The business-minded family of Falguni Nayar

Image of Falguni Family

Falguni was brought up in a business family and her whole childhood was spent in a business environment. For her Master’s degree, she took admission into IIM Ahmedabad and later joined a firm as a role of Management consultant. In 1993, she shifted her job to Kotak Mahindra Bank and did the job for 19 years in this company. After working so hard, she got promoted to the position of Managing director of the Kotak Mahindra Bank.

Despite having a prestigious job, she always wanted to do something of her own. So, in order to start her entrepreneurship project, she resigned from Kotak Mahindra Bank. Falguni Nayar has 2 children (Son Anchit and Daughter Adwaita). Her son Anchit is a graduate of Columbia University and now handling the e-commerce business of Nykaa. Her Daughter is an MBA graduate from Harvard Business school and now handling the fashion vertical section of Nykaa.

5. Corporate Social Responsibility

CSR

Corporate social responsibility is an obligation of large companies to serve society. If we talk about Nykaa, they are doing the best job in this department. As per their website, they distributed Medical essentials like N-95 Mask, Pulse Oximeters, PPE Kits, Sanitizers, etc during the difficult times of Covid-19.

They have also joined hands with an NGO named Society for Nutrition, Education, and Health Action (SNEHA). The key area of the NGO is to take care of Maternal Health care and raise a voice for the prevention of violence against women and children.

6. Whooping amount of products on Nykaa

Image of user interface of Nykaa app

Starting as a startup to becoming one of the largest e-commerce companies in India, Nykaa has come a long way. The number of products and brands listed on their platform speaks about their expansion level. Moreover, as of 2021, there are over 2500 brands selling over whooping 5 lac products on the Nykaa app.

7. Business Model of Nykaa

Business Model of Nykaa

Nykaa has adopted an inventory-based business model for their business. That means they buy directly from the manufacturer’s companies and then list the products on their portal. Apart from its online portal, the company also has offline stores in a few cities in India. They have three offline stores named Nykaa Luke, Nykaa On Trend, and Nykaa Kiosks. The company has targeted the younger generation, especially the women sector of the Indian market. The solution that they have provided with their business is that they organized the unorganized beauty market of India. They have provided the customer with the best and most unique experience of Beauty products.

8. Nykaa’s Unbeatable IPO

IPO

Last year Nykaa got listed on the Indian stock market with a mind-blowing opening. They issued IPO on October 28 and their initial price soared almost double. The company had an issue price of Rs.1125 on BSE and on the closing date, the price reached nearly Rs.2206.70. This was the grand opening of the company and they got listed on BSE. The bumper share issue of the company took its valuation to over $14 billion. Falguni Nayar, CEO of the company holds nearly 56% of the company’s share which made her the richest self-made woman in India.

Conclusion

After working on the wonderful story of Nykaa and its CEO Falguni Nayar, we think that Falguni Nayar has proven that Business is not only meant under men’s leadership. Starting a job from scratch and reaching the top official of Kotak Mahindra Bank is not easy. Falguni Nayar achieved this height with her constant efforts for years. She always want to do something of her own but she waited for the right time to pursue her dreams. She started Nykaa at the age of 50, at which most people want retirement from their work. With her great corporate experience, she made Nykaa at the top of the Indian beauty market in just less than a decade. India saw its first unicorn company under a woman’s leadership which is just mind-blowing.

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