Nykaa Founder "Falguni Nayar" Success Story: The First Woman Unicorn of India

Nykaa founder Falguni Nayar, born on February 19, 1963, in Mumbai, grew up in a Gujarati family with deep-rooted business values. With a keen entrepreneurial spirit inherited from her community, she was inspired by her father, who ran a bearings company, and from an early age, developed a fascination for the world of business. This foundation eventually led her to build Nykaa, one of India’s leading beauty and wellness e-commerce platforms, leveraging both her heritage and her passion for 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 years 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 in 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 to launch her own business.

This makes us believe that the career of Falguni Nayar as Nykaa founder 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 Company limited for 18 years.

Even after working for 18 long years in Kotak Mahindra, she understood she had the zeal to take up her own business. She has also served on the boards of various companies including TATA motors. As a woman, she loved make-up and skin care, further pushing her to create her cosmetics brand.

It was in 2013 that the company became popular, and the sales graph saw an upward trend. Nykaa is made from the Sanskrit word ‘Nykaa’, which means being in the spotlight. The name proves itself in 2023, as Nykaa has single-handedly become India’s largest online cosmetics seller.

Also read: Top Indian Women Entrepreneurs in India

Growth and Success of Nykaa Founder

Leaving a job at 50 to start a venture is risky. But for Nykaa founder/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.

First Woman Unicorn of 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 as 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 in 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%.

Awards for Corporate Excellence

Falguni Nayar, the Nykaa founder, has received several awards for her achievements in the business world. Some of the awards include:

• Fortune India’s Most Powerful Women in Business
• Economic Times Most Powerful Women in Business
• Forbes India’s Most Powerful Women
• EY Entrepreneur of the Year 2019
• EY Entrepreneur Of The Year 2021
• India’s 50 Most Powerful Women in Business
• DNA Women Achievers Awards 2023

Reasons Behind Nykaa Success

Any business model’s success depends on its owner’s strength and knowledge. Here are a few ways on how Falguni Nayar, the Nykaa founder, made it 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 that it is more important for her to sell the right shade of lipstick than to sell it at half price.
• Market experience of the co-founder: The 20-year-long corporate experience gave Nayar good exposure to the market. She had always been a keen enthusiast of the market and statistics, and it helped to 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 them 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 channelling the demands of both upper-middle-class girls and women.
• Inclusive Products: Nykaa encompasses a whole range of products. It offers all shades suitable for 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.

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.

As of February 2023, it employed 175 engineers and had 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. 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 one 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

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.

Nykaa Founder has often shown keenness to add new brands to her venture; it is also expanding its scope. It began 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 larger customer base.

Falguni Nayar Success Story

Falguni Nayar (Nykaa founder) is the epitome of perseverance and determination in the present business model of India, where men own most Unicorns. Falguni Nayar’s 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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