Nykaa Founder Success Story - Falguni Nayar, The First Woman To Lead a Unicorn in India

Nykaa founder Falguni Nayar, born on February 19, 1963, in Mumbai, grew up in a Gujarati family with strong business values. Her father, who ran a bearings company, inspired her entrepreneurial spirit from a young age. This early exposure to the world of business helped shape the vision of the Nykaa founder, eventually leading her to create one of India’s leading beauty and wellness e-commerce platforms. Her heritage and passion for the market played a significant role in her success.

The Nykaa founder completed her bachelor’s degree in commerce from Sydenham College of Commerce and Economics. She furthered her education by pursuing a Master’s degree from the Indian Institute of Management Ahmedabad. During her time in college, the Nykaa founder met her future husband, Sanjay Nayar, who now serves as the CEO of Kohlberg Kravis Roberts India. Their shared journey in the business world played a crucial role in her entrepreneurial path.

In 1987, the Nykaa founder married Sanjay Nayar, and they have two children, Adwaita Nayar and Anchit Nayar. Both of her children play key roles in Nykaa’s growth and success. Adwaita Nayar serves as the CEO of Nykaa Fashion, while Anchit Nayar oversees the retail and e-commerce divisions. The Nykaa founder’s family continues to be an integral part of her business journey.

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 stable job at 50 to start a new venture is a risky move, but for the Nykaa founder, Falguni Nayar, it was a well-calculated risk that paid off. Her decision to step away from a successful career in finance and start Nykaa turned out to be a game-changer. The Nykaa founder’s courage to take this risk has become an inspiring story, showing that with vision and perseverance, success is achievable at any stage of life.

The Nykaa founder’s journey wasn’t easy. Initially, Nykaa only received 100 orders in its first year. However, Falguni Nayar’s commitment and strategic approach laid a strong foundation for growth. She focused on building trust and offering quality products, and slowly, Nykaa gained popularity. The Nykaa founder’s dedication and ability to learn from the market helped the brand grow into what it is today.

It wasn’t until 2015 that Nykaa launched its own line of cosmetic and beauty products, which quickly became a hit. The Nykaa founder’s deep understanding of the beauty industry helped Nykaa carve its niche. Within just four years, the company became one of India’s most prominent e-commerce platforms, marking incredible success.

First Woman Unicorn of India

In 2020, Nykaa became the first-ever unicorn in India led by a woman. While the pandemic initially posed challenges, the company made a remarkable recovery afterward. It emerged stronger than before, solidifying its place as a top player in the industry. Nykaa also launched its first offline outlet in Delhi, expanding its reach and presence in the market.

During an interview with Mint, Falguni Nayar, the founder of Nykaa, shared her vision of serving the interests of all stakeholders. She expressed her desire to position Nykaa as a leading retail player in the beauty and wellness industry. This clear vision has been instrumental in the brand’s rapid growth and success.

Nykaa’s growth as a brand has been impressive. Today, it boasts over 5 million monthly active users, offering more than 500 top brands across self-care and makeup. With 130,000 products available both online and in stores, Nykaa is set to reach a valuation of 300 crores by 2027, 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’s Success

The success of any business model relies heavily on the strength and knowledge of its owner, and Nykaa is no exception. Falguni Nayar, the Nykaa founder, brought a deep understanding of the market, coupled with her strong leadership skills. Her ability to identify gaps in the beauty and wellness industry allowed her to build a unique business that catered to the growing demand for quality products. The Nykaa founder’s experience in finance also played a significant role in making smart business decisions that helped the company grow.

Another reason behind Nykaa’s success is its focus on customer satisfaction and trust. By offering a wide range of beauty and wellness products, along with easy access through an online platform, Nykaa quickly became a trusted name. The Nykaa founder’s commitment to quality and a personalized shopping experience helped the brand build a loyal customer base. This combination of strategic vision and customer-centric approach has made Nykaa one of India’s leading e-commerce platforms.

Here are a few ways in which 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 channeling 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.
• Customer-Centric Approach: Falguni Nayar’s focus has always been on providing an exceptional customer experience. She made sure that Nykaa offered a user-friendly interface and personalized services, allowing customers to easily find products that suit their needs. This customer-centric strategy contributed to Nykaa’s reputation for reliability and trustworthiness.
• Building a Strong Online Presence: Recognizing the growing importance of e-commerce, the Nykaa founder invested early in building a robust online platform. This foresight allowed Nykaa to reach a larger audience and leverage the convenience of online shopping. It enabled the brand to stay ahead of competitors in the rapidly evolving digital landscape.
• Focus on Community Engagement: Falguni Nayar’s strategy also involved engaging with customers through social media and beauty communities. By building a strong online presence and creating interactive content, Nykaa was able to connect with its audience and establish a loyal customer base. This engagement fostered trust and encouraged word-of-mouth marketing, helping the brand grow organically.

Impact of Nykaa

Falguni Nayar, the founder of Nykaa, has witnessed an ever-increasing net worth and was honored in 2016 as one of the “Most Powerful Women Entrepreneurs.” These accolades reflect not only the financial success of her brand but also the significant social and market changes she has brought about. Through Nykaa, she has reshaped the beauty industry in India, providing new opportunities for women and inspiring countless entrepreneurs.

Nykaa handles over 1.5 million orders per month, efficiently managed by a dedicated team. The company has built a strong market presence and continues to create employment opportunities for the youth of India. Nykaa’s operational success and vast market base demonstrate its effective business model, contributing to India’s growing e-commerce sector.

As of February 2023, Nykaa employed 175 engineers, with a marketing team of over 100 employees. The media and communication team includes more than 62 professionals, and 55 people work in sales. Additionally, Nykaa also provides employment at its offline stores, contributing to job creation across multiple sectors.

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 has made significant strides in establishing a strong market presence and is now focused on expanding its services globally. The brand is looking to allow international exports of its products, capitalizing on its existing Indian customer base that already purchases international brands. With this expansion, Nykaa aims to capture international customers and increase its global footprint, further solidifying its position in the beauty and wellness industry.

The founder of Nykaa has consistently demonstrated a willingness to add new brands and expand the scope of her venture. Initially focused on beauty products, Nykaa has successfully ventured into fashion and apparel, diversifying its offerings. This expansion has helped the brand gain wider appeal, and the founder envisions continued growth in both beauty and fashion, making Nykaa a comprehensive lifestyle platform.

Opening multiple offline stores has contributed significantly to the Nykaa founder’s net worth. With plans to open 50 more stores this year, the brand aims to increase its offline presence. This strategy will not only boost Nykaa’s visibility but also help attract a larger customer base, further enhancing its market position.

Falguni Nayar Success Story

Falguni Nayar, the Nykaa founder, is a true example of perseverance and determination in India’s business world, where most unicorns are owned by men. Her success story inspires countless women entrepreneurs, showing them that with hard work and vision, they too can achieve greatness. The Nykaa founder’s journey, starting a business from scratch at the age of 50, highlights her deep knowledge of the market and her ability to adapt to changing trends.

The Nykaa founder’s story encourages women and people globally to believe that it’s never too late to start something new. Falguni Nayar’s decision to venture into the beauty industry, despite having a successful career in finance, proves that age is just a number. Her courage and entrepreneurial spirit resonate with anyone who dreams of building something meaningful, no matter their stage in life.

Under the leadership of the Nykaa founder, the company has grown significantly, both online and offline. Nykaa’s expansion is a testament to her business acumen and vision. As Nykaa continues to expand, it’s clear that the Nykaa founder’s journey is far from over, and her impact will be felt for years to come.

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