Embarking on a new entrepreneurial journey at the age of 50 is a decision that few individuals opt for, given the considerable challenges involved. It demands not only courage and unwavering commitment but also an extensive investment of time and unwavering faith.
Falguni Nayar exemplified a resolute determination as she made the courageous choice to resign from her established position and establish Nykaa, demonstrating a remarkable willingness to endure the challenges and tribulations inherent in such a pursuit.
Falguni Nayar : Early life
Falguni Nayar, born on 19th February 1963 in Mumbai, hails from a distinguished Gujarati family with a rich entrepreneurial heritage. Guided by the adage that business is ingrained in the Gujarati ethos, Nayar adeptly embraced this legacy from her forebears.
During her formative years, she witnessed her father’s adept management of a bearings company, an experience that left an indelible mark and fueled her fascination with the dynamic world of business and markets.
Nayar embarked on her academic journey by earning a Bachelor’s in Commerce from Sydenham College of Commerce and Economics. Building on this foundation, she pursued her Master’s degree at the prestigious Indian Institute of Management Ahmedabad, further honing her business acumen.
Her life took a significant turn during her college years when she crossed paths with Sanjay Nayar, now the CEO of Kohlberg Kravis Roberts India. Their union in 1987 marked the beginning of a shared journey, blessed with two children, Adwaita Nayar and Anchit Nayar.
Currently, both offspring play pivotal roles within their mother’s business empire. Adwaita Nayar, at the helm of Nykaa Fashion, steers the company with finesse, while Anchit Nayar spearheads the retail and e-commerce divisions, showcasing the family’s commitment to excellence and continuity in the business realm.
The Genesis of Nykaa
The inception of Nykaa is a compelling narrative that underscores the adage, “Better late than never!” In 2009, at the age of 46, Falguni Nayar harbored the aspiration to embark on an entrepreneurial journey.
The seeds of her entrepreneurial vision began to sprout in 2011, culminating in the idea of establishing a multi-brand e-commerce platform.
In pursuit of this ambition, she made the bold decision to resign from her role as Managing Director at the Kotak Mahindra Group in 2012, with a steadfast commitment to realizing her entrepreneurial dreams.
Falguni Nayar’s professional trajectory was anything but a smooth path. Despite having devoted two decades to her role at Kotak Mahindra, she recognized the inner calling to venture into the realm of entrepreneurship. Departing from the security and financial allure of her position, she embraced the inherent risks associated with starting her own business.
The decision to leave behind a comfortable and lucrative position reflected the unwavering determination and courage that defined Falguni’s entrepreneurial spirit. Beyond the confines of the corporate world, she discovered a passion for cosmetics, particularly in the realms of makeup and skincare. This passion served as a catalyst, propelling her towards the creation of her very own cosmetics brand — Nykaa.
Exploring the Genesis of Falguni Nayar’s Nykaa
In April 2012, Falguni Nayar embarked on a transformative journey by assuming the role of Nykaa’s CEO, thereby diversifying her professional portfolio. Despite the unconventional nature of this career shift, Nayar’s decision was grounded in a keen observation of the burgeoning online consumer market in India. Motivated by her passion for makeup and a strategic vision for the potential of the beauty segment in the online retail arena, she strategically positioned herself at the helm of Nykaa.
Drawing inspiration from accomplished entrepreneurs such as Ajay Bijli, the visionary behind PVR Cinemas, and Ronnie Screwvala, the driving force behind UTV, Nayar chose to establish her company’s headquarters in Bombay, her hometown.
Her formative years in the backdrop of her father’s modest bearings business equipped her with the confidence and belief essential for entrepreneurial success. Regular discussions about stock markets and trade within her family during her upbringing further solidified this conviction.
While the dream of Nykaa had been incubating within Nayar for an extended period, she only found the opportunity to nurture and grow the business when her twins, Anchit and Adwaita, departed for overseas academic pursuits. Imposing a self-imposed deadline of 50 to embark on this entrepreneurial venture, she courageously resigned from her position at Kotak, dedicating herself wholeheartedly to the realization of Nykaa’s potential.
Growth And Success Of Nykaa Founder
Falguni Nayar’s entrepreneurial journey embarked upon a calculated risk, as she transitioned from a stable career to establish Nykaa at the age of 50. Nayar’s astute decision-making and risk-taking prowess have not only garnered attention but have also contributed significantly to Nykaa’s remarkable success.
From a modest beginning of processing a mere 100 orders in its inaugural year, Nykaa introduced its line of cosmetic and beauty products to the market in 2015, swiftly gaining acclaim. Within a span of four years, Nykaa evolved into a powerhouse within the Indian e-commerce landscape.
In a historic milestone in 2020, Nykaa achieved the distinction of becoming India’s first female-led Unicorn. Despite facing challenges during the Covid-19 pandemic, Nykaa rebounded with resilience, solidifying its position as a key player in the industry and inaugurating its inaugural outlet in Delhi.
In an insightful interview with Mint, Falguni Nayar, the visionary founder of Nykaa, expressed her commitment to serving the interests of all stakeholders and articulated her vision of positioning Nykaa as a preeminent retail player in the industry.
” A Journey of 5 Million Monthly Users and 500 Top Brands”
The exemplary growth trajectory of Nykaa is underscored by its current standing as a brand boasting over 5 million monthly active users, offering a diverse range of over 500 top brands in both self-care and makeup, comprising a staggering 130,000 products available through the Nykaa app and offline stores.
Attributable to the strategic acumen of Nykaa’s co-founder, the company is poised to surpass 300 crores in revenue by 2027, with a current growth rate at an impressive CAGR of 6.32%. Anticipated projections indicate that by 2023, Falguni Nayar’s net worth as the founder of Nykaa will reach approximately 240 USD.
This success is a testament to Nayar’s entrepreneurial vision and Nykaa’s enduring commitment to excellence in the beauty and self-care industry.
Business Model Of Nykaa
Driven by Falguni Nayar’s profound passion for cosmetics and her astute recognition of the burgeoning demand for an online cosmetics and wellness platform in the Indian market, Nykaa stands as a transformative force in the realm of women’s shopping experiences.
Under Nayar’s adept leadership, Nykaa has meticulously curated an extensive portfolio, encompassing over 850 brands and a diverse array of 35,000 products. The company’s commitment to meeting the evolving needs of its clientele is further underscored by its 17 physical stores strategically located across various Indian cities.
Nykaa employs two distinct store formats to cater to its discerning clientele. The first, Nykaa Luxe, serves as a haven for high-end Indian and international beauty brands, complemented by the availability of Nykaa Beauty products—Nykaa’s proprietary collection. The second format, Nykaa On Trend, strategically features a curated selection of popular market products, ensuring a comprehensive and trend-driven shopping experience.
Despite being a relatively young player in the online beauty industry, Nykaa has exhibited remarkable success in establishing a robust foothold within its target demographic, primarily comprising individuals aged between 22 and 35 years.
Notably, the company expanded its offerings in March 2016 by introducing private-label products within the bath and body care segment, marking a strategic move towards enhancing its product portfolio and solidifying its position as a comprehensive beauty and wellness destination.
Future Plans and Vision Statement for Nykaa
In a recent interview, the founder of Nykaa expressed a profound sense of enthusiasm, characterizing the company’s current phase as a pivotal moment in its evolution. Nykaa, as a brand, has undeniably achieved remarkable success in establishing a robust presence within the market.
However, the company’s aspirations extend far beyond its current standing, with a strategic vision aimed at global expansion and facilitating the international export of its curated range of products. While Nykaa already caters to a substantial Indian customer base seeking international brands, it is poised to make significant inroads into the international market, targeting a diverse and global customer demographic.
The CEO of Nykaa has consistently demonstrated a proactive approach to enhancing the company’s portfolio, displaying a keen interest in incorporating new brands into the venture. The brand, which initially focused solely on beauty products, has evolved to incorporate fashion and apparel, responding dynamically to the ever-changing market demands. Nykaa’s beauty products have garnered substantial popularity, and this success serves as a foundation for its visionary aspirations.
The establishment of offline stores has not only contributed to the financial success of Nykaa but has also emerged as a strategic move to augment the brand’s overall influence. Looking ahead, the founder of Nykaa envisions the opening of an additional 50 offline stores within the current fiscal year. This deliberate expansion into physical retail spaces is anticipated to elevate Nykaa’s prominence and further cultivate a loyal customer base within an even larger market segment.
Nykaa’s commitment to innovation, diversification, and expanding its physical footprint underscores its dedication to sustained growth and prominence in the beauty and fashion industry. The company’s future trajectory is defined by a strategic blend of global outreach, portfolio enhancement, and the continued establishment of offline stores, all contributing to Nykaa’s position as a leader in the beauty and fashion landscape.
