Fashion portal close to raising ₹50 crore in fresh funding

Sangeetha Chengappa Bengaluru | Updated on January 24, 2018 Published on June 11, 2015

Falguni Nayar, Founder,

Sales will top ₹100-crore mark by March, says Founder

Multi-brand retailer of premium beauty products plans to raise funds to the tune of ₹50 crore from existing and new investors.

Founded two years ago by former MD of Kotak Mahindra Capital Investment Banking, Falguni Nayar, the holding company, FSN E-Commerce Ventures Pvt Ltd, has already raised ₹20 crore from Indian HNIs and NRIs.

“We will close a fresh round of funding in a month. We are addressing a $11-billion beauty and personal care market in India with our multi-brand offering and hope to change the way Indians buy beauty and personal care products,” she said. Nayar believes that to be successful in the beauty products business, one has to be a multi-brand retailer that offers the most authentic and fresh choice of products to its customers, much like Sephora, a global beauty store chain owned by Louis Vuitton where in-store beauty advisors guide customers on what brands suit them.

Inspired by China’s top online cosmetics retailer,, which follows an inventory model, Nykaa offers 15,000 products from 350 brands including makeup, skincare, hair care, fragrances, bath and body and luxury products for women and men, especially in the 21–35 years age profile. The site attracts 3 million visits a month and has 5,00,000 registered customers. Additionally, Nykaa offers its customers an online beauty magazine, virtual makeovers, a panel of 30 experts for beauty advice, live expert chat sessions, and a dedicated YouTube channel (Nykaa TV) featuring demo videos, so they can make informed purchase decisions.

Private label

The company plans to launch its own private label in August which Nayar says should contribute 35 per cent to overall sales over time. “We are very particular about product quality, authenticity and freshness, which has been well received by our customers and are comfortably placed to exceed our target of garnering ₹100 crore in sales by March 2016.” Nykaa ensures product quality with regular surprise audits of all the brands on the site.

Published on June 11, 2015
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