Quick Summary
- Falguni Nayar is the founder and CEO of Nykaa, India’s leading beauty and wellness e-commerce platform.
- Prior to founding Nykaa in 2012, she had a successful career as an investment banker at Kotak Mahindra Capital.
- Nayar ventured into entrepreneurship at the age of 50, defying traditional career paths.
- She envisioned Nykaa as a one-stop destination for all beauty and wellness needs, offering a wide range of products and brands.
- Under her leadership, Nykaa has experienced remarkable growth, becoming a household name in India’s beauty industry.
- Nayar’s entrepreneurial journey and success have inspired many women and entrepreneurs in India.
- She has been recognized for her achievements, including being listed on Forbes India’s list of self-made women billionaires
Table of Contents
Early Life and Career: Beginning of Falguni Nayar Success Story
Born in Mumbai on 19 February 1963, Falguni Nayar was raised in a Gujrati family. As it is rightly said, business runs in the blood of Guajarati’s. Falguni Nayar grasped this trait of her ancestors and her community quite well. In her childhood, she saw her father run a bearings company. She was awestruck and inspired by the world of business and the market.
She pursued her Bachelor’s in commerce from the Sydenham College of Commerce and Economics. Later, she pursued her Master’s from the Indian Institute of Management Ahmedabad.
It was during her college that she met Sanjay Nayar (who is currently the CEO of Kohlberg Kravis Roberts India). The two got married in 1987 and had two kids, Adwaita Nayar, and Anchit Nayar.
Their children are currently leading top positions in their mother’s business. While Adwaita is the CEO of Nykaa Fashion, Archit heads the retail and e-commerce businesses.
The Birth of Nykaa
The Nykaa founder story is intriguing, as it defines the proverb “Better late than never!” In 2009, at 46, Falguni aspired to start a company. She got a few ideas in 2011, including establishing a multi-brand e-commerce platform. As a result, she quit her job in 2012 with the goal of launching her own business.
This makes us believe that the career of Falguni Nayar was not a smooth road. She had to take the risk of leaving a comfortable and lucrative job as a Managing Director in the Kotak Mahindra Group.
Even after working for 20 long years in Kotak Mahindra, she understood she had the zeal to take up her own business. As a woman, she loved make-up and skin care, further pushing her to create her cosmetics brand.
As a lover of cosmetics and beauty products, the founder of Nykaa felt that there is a dearth of holistic beauty retail stores in India. With that in mind, she envisioned making her own retail business with many beauty products available under a single platform.
In 2012, she officially founded the retail store and named it Nykaa. Well, the journey was more challenging than it sounds. At the beginning of her career as an entrepreneur, Nykaa was neither popular nor lucrative. She had hired three people from her father’s business; later, her daughter joined her venture.
She began working in a small office offered by her father and had three employees onboard, taking care of everything. Initially, she faced numerous challenges. The website crashed more often than anticipated, and whenever they received 100 orders, the complete system would shut down.
It was in 2013 that the company became popular, and the sales graph saw an upward trend. Consequently, Nayar’s daughter joined hands with her and quit her job to become a part of Nykaa’s team.
Nykaa is made from the Sanskrit word ‘Nayaka’, which means being in the spotlight. The name proves itself in 2023, as Nykaa has single-handedly become India’s largest online cosmetics seller.
Growth and Success of Nykaa Founder
Leaving a job at 50 to start a venture is risky. But for Nykaa’s CEO, this well-calculated risk also turned out in her favor later. Falguni Nayar’s success story has made headlines not only because of her commendable risk-taking abilities but also because of the exponential growth that Nykaa has made.
This brand has come a long way from selling merely 100 orders in the first year. It was not before 2015 that Nykaa brought its line of cosmetic and beauty products into the market. The products became an instant hit! Within four years, the company was successful in becoming one of the mightiest e-commerce platforms in India.
In 2020, Nykaa became the first-ever Unicorn in India, initiated and led by a woman!
While the Covid era came as a little setback to the business, in the aftermath of the pandemic, the company bounced back stronger than ever. It emerged as a top player and launched its first outlet in Delhi.
In her interview with Mint, Falguni Nayar, who is Nykaa Founder, expressed that she wished to serve the interests of all stakeholders. She also added that she envisions making Nykaa a leading retail player in the industry.
The growth of Nykaa as a brand is exemplary. Today, Nykaa is proud to sustain over 5 million monthly active users. It offers over 500 top brands of both self-care and makeup and 130000 products. All these products are available both at the Nykaa app and offline stores.
All thanks to the business and market skills of Nykaa’s co-founder, Nykaa is expected to reach over 300 crores by 2027. It is currently growing at a CAGR of 6.32%. 2023 the Nykaa founder net worth will be around 240 USD!
Reasons behind Nykaa Success
Many reasons are contributing to the growth and success of Nykaa.
Any business model’s success depends on its owner’s strength and knowledge. Here are a few ways how Falguni Nayar made Nykaa a success.
- Timing: Falguni Nayar knew Indian beauty stores lacked quality and customer convenience. Through her brand, she entered the market at the right time. She created an omnichannel interface that gave users a one-of-a-kind experience.
- No compromise in quality- In an interview with Bloomberg, Nayar claimed how it is more important for her to sell the right shade of lipstick than sell it at half price.
- Market experience of the co-founder- The 20-year-long corporate experience gave Nayar good exposure to the market. Additionally, she had always been a keen enthusiast of the market and statistics. These both helped plan a strategic route for the business’s growth.
- Top brands- Nykaa offers all national and international beauty and wellness brands. Its strategic way of directly selling authentic products to the users gave users customer satisfaction.
- Effective marketing: Unlike other brands, Nykaa kept product quality on the pedestal instead of marketing. The executive team ensured that they did not overspend on marketing.
- Finding the right niche: Nykaa focused on creating and focusing on the correct niche. The former beauty standards did not fit the demands or satisfaction of Indian girls and women. Nykaa focused on channelizing these demands of both upper-middle-class girls and women.
- Inclusive products: Nykaa encompasses a whole range of products. It offers all shades suitable to all skin types. Its essence of making beauty accessible to all made every customer feel seen and valued. Nykaa now has products for both genders and has widened its scope to fashion.
All young entrepreneurs can take inspiration from Nykaa Founder Falguni Nayar’s success story. The effective strategy and innovative marketing of Nykaa co-founder have led to a manifold increase in her net worth.
Impact of Nykaa
With an ever-rising net worth, Falguni Nayar (Nykaa Founder) was honored to be on the “Most Powerful Women Entrepreneurs” list in 2016. These honors are not only a result of the financial growth that her brand has created. But they are also the epitome of the social and market change that Falguni Nayar has created through her brand.
Nykaa has over 1.5 million orders a month per month, which is effectively managed by their team. Nykaa has generated a good market base and created employment opportunities for Indian youth.
As of February 2023, it employed 175 engineers and has a strong marketing team of over 100 employees. Over 62 people hold the media and communication team, and 55 work under the sales team. Additionally, it also employs people in offline stores.
Also Read: Success Stories of Indian Entrepreneurs You Can’t Miss!
Nykaa has also made beauty and health products for many users from India. Luxurious and sophisticated brands are available on one single platform. Nykaa only offers discounts during sales. The core aim of the brand is to offer quality and meet customer satisfaction. The company also envisions making cosmetics and fashion comfortable for all users.
Through innovative marketing and customer engagement solutions, Nykaa has steadily expanded its horizon. It now also offers skin care tips, beauty services and advice. Its fashion festivals are widely popular among netizens, who often enjoy the quality, high-rated experience offered by Nykaa.
The business targets an audience of 22-35 years of age. The categories of products Nykaa offers are ever-expanding. Nykaa has warehouses in Mumbai and Bangalore and recently opened in Delhi. It deals in major beauty and healthcare brands such as Lakmé, Kaya Skin Clinic, L’Oréal Paris, Kay Beauty, and some exclusive brands such as Jacques Du Manoir, Jack & Jones, Jean Paul Gaultier, and more.
Nykaa Future Plans and Vision
In a recent interview, the Nykaa owner admitted that she is experiencing a coming-of-age excitement as a company.” Nykaa, as a brand, has already done tremendously well in establishing a market. It aims to expand its services globally and allow international export of products. While it already has Indian customers purchasing international brands, it is looking forward to capturing international customers.
The CEO of Nykaa has often shown keenness to add new brands to her venture; it is also expanding its scope. It initiated with only beauty and later added on fashion and apparel too. Nykaa, as a brand of beauty products, is also gaining popular demand and is envisioning the same for the future.
Opening many offline stores has added to the Nykaa founder’s net worth. The Nykaa owner also looks forward to opening 50 more offline stores this year. By expanding its offline presence, Nykaa will gain more popularity and a customer base within larger market base.
Falguni Nayar : Breaking Barriers to Building Success
Falguni Nayar is the epitome of perseverance and determination in the present business model of India, where men own most Unicorns. The Falguni Nayar success story paves the way for future inspirational stories by young women entrepreneurs. The Nykaa founder’s journey of starting a business from scratch at the age of 50 truly portrays her knowledge and wisdom about the market. Also, it encourages women and people around the world to start afresh.
The story of Falguni Nayar speaks courage in all languages. It tells us there is no age to do what you aspire to. Nykaa is growing to larger scales in offline and online markets, and tracking its expansion activities only gives a little insight into how far it will go.
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Frequently Asked Questions (FAQ’s)
Falguni Nayar is the CEO of Nykaa. She belongs to a Gujarati family and was born on 19 February 1963 in Mumbai. With her vision and expertise, Falguni Nayar has transformed Nykaa into a thriving business, providing customers with a wide range of beauty products and services.
Falguni was always keen to establish her own business. Falguni Nayar recognized an opportunity to enter the e-commerce sector, meet the needs of Indian consumers, and provide a flawless online shopping experience by providing a variety of beauty items. After this realization, she left her job of over 20 years and founded Nykaa in 2012 at 50.
In the third quarter of FY23, Nykaa registered a growth of over 26 percent, i.e.Rs, 1901 crore year-on-year. The customer share is also increasing by 27 percent.
Nykaa does not ship outside India at the moment. It, however, offers international brands from countries like the USA and Europe. You can find these brands in the global store icon in the app.
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