FSN E-Commerce Ventures (NYKAA) Investor Day 2025 summary

Strategic Direction and Business Outlook

• Ambition to scale the content engine 3x-4x in the next 4-5 years, driven by AI, brand collaboration, and new customer acquisition.

• Women will remain the core customer base (65%-70%), with men and kids expected to contribute 20%-25% and 5%-7% respectively over the long term.

• Branded business is projected to reach nearly 70% of total business, emphasizing close partnerships with brands.

• Marketing spend as a percentage of revenue is expected to decline as repeat customer retention increases, following a trajectory similar to the beauty business.

• Ambition to grow House of Nykaa’s organic portfolio at 30% CAGR to Rs 6,000 Cr GMV by FY30 and fashion vertical by 3–4x in five years.

Industry Outlook and Growth Drivers

• India projected to become the 3rd largest global economy by FY30, with GDP per capita rising to $4–4.5K and retail market surpassing $1.5T by 2030, driven by strong discretionary spending and digital adoption.

• Beauty and fashion are key growth categories, expected to account for a third of the e-commerce market by FY30, with online beauty and fashion reaching $70–75B.

• Gen Z and rising affluence are fueling higher frequency and value of beauty and fashion purchases across all geographies and income levels.

• India’s e-commerce shopper base is set to be the world’s second largest by FY30, with over 400M shoppers.

• Premiumization and brandification trends are accelerating, with global and D2C brands expanding rapidly.

Technology and AI Innovation

• Transitioning from a digital native to a fully AI native company, embedding AI across all functions for real-time, autonomous decision-making and productivity gains.

• AI-driven initiatives include semantic search, conversational search, virtual try-on (MUSE), AI-powered analytics for partners (Nykaa Pulse), and customer service automation (NyNaa).

• Productivity gains targeted through AI copilots, aiming for 50% of code to be AI-generated by December and 70% automation of customer service load by year-end.

• Centralized AI team established to drive innovation and operational efficiency.

• Warehouse automation pilots underway, with simulations indicating up to 40% productivity improvement.