Beauty and fashion retailer, Nykaa expects its future growth to be powered by demand from the Gen Z consumers, who are driving the $2 trillion consumption opportunity over the next 10 years.

In its investor day presentation, Nykaa said it expected its beauty business to grow in the mid-20s over the next five years riding on digital discovery, rising tide of premium brands and its omnichannel distribution strategy.

The gross merchandise value of Nykaa Cosmetics is seen reaching ₹6,000 crore by FY30, growing at 30 per cent annually. This business tripled over the last six years and has served over 8 million customers.

In the next five years the target is to growth Nykaa Fashion 3-4 times and achieve a steady 10 per cent EBITDA margin. Nykaa Fashion which reported GMV of ₹3,800 crore last fiscal year has now set its sights of becoming profitable and the pathway to that is through increase in platform size, repeat user engagement, and premium brand expansion.

Nykaa’s Superstores are making inroads into the hinterland with plans to expand to over 20,000 pin codes and have a presence in 3,200 cities from current 1,100 . Superstores had a GMV of ₹940 crore last year.

The retailer said it has outpaced the country’s e-commerce growth trajectory growing at 42 per cent over the last five years compared to the e-commerce growth of 20 per cent. It ended FY25 with a GMV of ₹15,600 crore, most of which was contributed by the beauty business at ₹11,800 crore.

House of Nykaa, which consists of a portfolio of celebrity-led brands, reported ₹2,100 crore in GMV and five brands crossed the ₹100 crore mark, of which three were above ₹200 crore. It notched up GMV of ₹1,700 crore and is expected to reach ₹6,000 crore by FY30.

Gen Z customers are already driving growth for key lifestyle categories and direct spending by them will further boost growth in these segments, Nykaa said in its presentation.

Recognising the convenience of quick commerce, the company has launched Nykaa Now and has already started operations across seven cities, where it has over 40 rapid stores, fulfilling orders within 30 minutes to two hours.

Published on June 26, 2025