FSN E-Commerce Ventures (NYKAA) Investor Day 2024 summary

Strategic vision and market positioning

• Aims to be India's leading omnichannel beauty and lifestyle retailer, targeting a $30bn+ TAM, with 33 million customers, 1.7 billion annual visits, and over 30% online beauty market share.

• Expanding omnichannel presence by doubling store count to 400+ by FY28 and growing the eB2B platform to serve 1,000+ cities.

• International expansion underway via Nysaa in the GCC, aiming for 70 stores and 7%-10% market share in prestige beauty by 2028.

• Focuses on premiumization, innovation, and deepening customer engagement through technology, hyper-personalization, and curated brand portfolios.

• Maintains separate apps for beauty and fashion to avoid cannibalization and optimize customer journeys.

Business verticals and growth levers

• Beauty vertical GMV more than doubled from INR 33.5B in FY21 to INR 83.4B in FY24, with ambitions for mid- to late-20s CAGR over the next several years.

• Retail business GMV grew from INR 1.9B in FY21 to nearly INR 7B in FY24, with plans to maintain 8%-10% of total GMV and grow at 40%+ annually.

• Own brands contribute INR 1,095 crore GMV (13.1% of beauty GMV), with top performers scaling to Rs 1.5-6 bn annualized GMV and strong innovation pipelines.

• eB2B Superstore business serves 200,000+ retailers in 1,000+ cities, with INR 600 crore GMV and plans for 9x scale-up and 3%-5% EBITDA margin in a few years.

• Nykaa Global Store expanded from 19 to 39 brands since FY21, targeting 80-100 brands by FY28, offering end-to-end import, distribution, and brand-building services.

Financial performance and guidance

• FY24 GMV reached Rs 1,24,461 mn (+28% YoY), revenue from operations at Rs 63,856 mn (+24% YoY), and EBITDA margin at 6.0%.

• Beauty and fashion owned brands delivered strong CAGRs (50% and 110% respectively) over FY21-24, with increasing contribution to overall GMV.

• The company targets mid-late 20s% CAGR in omnichannel retail GMV through FY28, with ambitions for significant margin expansion and EBITDA improvement across all business lines.

• Fulfilment and marketing costs have declined as a percentage of revenue, driven by regionalization, scale efficiencies, and higher repeat customer rates.

• Capital efficiency remains a focus, with peak CapEx in FY23 (>INR 200 crore), halved in FY24, and future investments focused on store rollout, selective warehousing, and technology.