Nykaa Fashion to triple revenues in 3 years

Vertical e-commerce major Nykaa Fashion aims to triple its revenues in the next three years. The e-commerce platform achieved a GMV of over $400 million in FY24.

Currently, Nyakaa Fashion has a 20 per cent share in the women’s online premium market, as per the company’s annual report, Its orders grew by 44 per cent to 7 million in FY24 and, the company aims to achieve a CAGR of mid-to-late 20s by FY28.

With a 30 per cent online market share, Nykaa also aims to double its store count by FY27. Currently, it operates 187 stores across 68 cities.

The e-tailer also operates 44 warehouses across 16 cities. The company has achieved significant improvement in leakages reducing reverse logistic costs. It is also collaborating with brands to drive fulfilment efficiencies. Its overall marketing costs in the last fiscal remained flat at 11.5 per cent of revenues, with a slight reduction in the fashion business.

According to the annual report, Nykaa’s employee expenses in FY24 reduced to 8.8 per cent of revenues against 9.6 per cent in the previous year. For its fashion business, the company’s investment in employee and fixed costs is expected to grow by 1.4 - 1.5X.