Nykaa, the beauty and personal care e-commerce firm, anticipates robust growth in the fourth quarter of FY24, with a strong Gross Merchandise Value (GMV) surge in the early thirties at a consolidated level compared to the previous year. Its parent company, FSN E-Commerce Ventures Ltd, disclosed in a regulatory filing that Net Sales Value (NSV) and revenue growth for the quarter are projected to be in the high twenties on a year-on-year basis. Consequently, the company’s full-year revenue growth for FY24 is estimated to be in the mid-twenties on a YoY basis.
During the fourth quarter of FY24, Nykaa observed momentum across its key drivers of customer acquisition, platform conversion, and user-level growth, resulting in a healthy increase in order volume, reflecting strong customer demand. Nykaa attributed this growth to significant uptake in key categories such as makeup and skincare, along with the success of the ‘Pink Love Sale’ during the quarter, leading to overall growth in the Beauty and Personal Care (BPC) vertical. The BPC vertical is expected to report a GMV growth of approximately 30 per cent, while NSV growth is forecasted to be in the mid-twenties on a year-on-year basis.
Despite muted industry growth in the fashion category, Nykaa Fashion maintained its growth momentum from the previous quarters. The fashion vertical’s GMV is anticipated to grow in the high twenties for Q4, with NSV growth expected in the mid-twenties on a YoY basis. Nykaa Fashion attributes its success to prioritizing sustainable growth, focusing on premium and differentiated offerings, and acquiring high-quality customers. This strategy is reflected in the outperformance of focus categories and core customer segments compared to overall growth.
Furthermore, Nykaa’s other vertical, primarily consisting of Superstore by Nykaa (an eB2B platform), continued to scale up. The GMV growth for this vertical in the quarter is expected to be in the mid-sixties, with NSV growth anticipated to be around 80 per cent on a year-on-year basis.
