FSN E-Commerce, widely known as Nykaa, has incorporated a new wholly-owned subsidiary Nykaa Essentials, which will be solely in the beauty and personal care (BPC) retail business, a company filing said on March 11.
"The main object of the new subsidiary company is trading and dealing in all kinds of cosmetics, toiletries, beauty, personal care and health care products, lifestyle products, perfumery products and other related goods and products of all kinds and descriptions and other related activities," Nykaa said in the statement.
The authorized share capital of Nykaa Essentials is Rs 10 crore and paid-up share capital will be Rs 5 lakh.
Premiumization of the beauty category has been a focus area for the company in the past several quarters, and Nykaa has said that it wants to continue to invest in the space.
"...as we see more consumers entering the world of prestige beauty as the Indian consumers tend to have better affordability in the coming years, we want to be well positioned to take advantage of the growth of luxury beauty in India," Anchit Nayar, Executive Director and CEO - Beauty, Nykaa had said after the December earnings call. The company claims it delivers 70% of the beauty orders within the same or next day in the top 110 cities.
Nykaa has been acquiring customers in the beauty segment at a faster pace compared to fashion, and has launched most of its brands during the December quarter in this category. "...beauty consumption in the country is on the rise, and many fashion first customers also are becoming beauty customers. Nykaa's own customer acquisition is far accelerated in Beauty now," Falguni Nayar said after the December quarter earnings.
The Q3FY25 revenue growth in Beauty segment has been strong, rising at 27% on year at Rs 2,060 crore.
Shares of Nykaa were higher by over 2% on March 11 and are trading flat on a YTD basis, however, since listing, the shares have more than halved. The company has a market capitalisation of Rs 47,000 crore.
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