Imagine this. You’ve spent decades climbing the corporate ladder, earning a stellar reputation in investment banking, and then—just when most people start thinking about retirement—you decide to build something from scratch.
Sounds unreal? Well, not for Falguni Nayar.
A determined woman with a sharp business mind, Falguni wasn’t someone who followed the crowd. She believed in creating value, taking calculated risks, and, most importantly, betting on herself. At 50, when most are planning their golden years, she took the biggest leap of her career—launching Nykaa, a leading company in e commerce beauty industry that redefined the industry in India and ultimately made her the richest woman of India.
Let’s decode the journey of Nykaa in building the top brand in the beauty industry.
The Gap in the Market
Back in 2012, shopping for beauty products in India was nothing like it is today. There were no well-organized online stores with authentic brands. You either had to rely on local shops with limited options or wait for someone to bring back international products from abroad. The experience was fragmented, and there was no trusted platform offering a wide range of quality beauty products.
An alumna of the prestigious Indian Institute of Management Ahmedabad (IIM-A), she built a successful career in investment banking before taking a leap into entrepreneurship. In 2012, she left behind her role as the Managing Director at Kotak Mahindra Capital. With just three employees, little experience in retail or IT, and a vision that many found too ambitious, she set out to redefine how Indians shop for beauty.
She realized that while e-commerce was booming in India, beauty remained an underserved category. If India had a dedicated beauty platform—something like Sephora but tailor-made for Indian consumers—it could change the way people shopped for makeup, skincare, and wellness products.
Nykaa in Action
Just like that, Nykaa was born in 2012. The name ‘Nykaa’ itself, derived from the Sanskrit word ‘nayaka,’ means ‘one in the spotlight,’ perfectly capturing the brand’s essence: to empower individuals and make them feel their best.
Nykaa wasn’t just another online store. It was a D2C eCommerce brand built on an inventory-based business model, where Nykaa purchases products directly from manufacturers and stores them in designated warehouses across Mumbai, New Delhi, and Bangalore. This ensured authenticity and quality, winning customer trust from the outset. With just three employees, little experience in retail or IT, and a vision that many found too ambitious, she set out to redefine how Indians shop for beauty. In its first few days, Nykaa processed only about 60 orders, but the philosophy was clear from day one.
Falguni once said,
It wasn’t just about selling products; it was about trust, expertise, and making the customer feel special.
The Challenges and Triumphs
Starting an e-commerce company was no small feat, and the early days of Nykaa were filled with hurdles. Indian consumers were skeptical about buying beauty products online. Concerns over authenticity, suitability, and returns meant that winning their trust was crucial.
Nykaa tackled this by ensuring 100% genuine products and educating customers through content-driven marketing. Unlike many startups that aggressively raised funds and burned cash for growth, Nykaa took a different approach. Profitability came first. This strategy set Nykaa apart from the typical startup playbook, where chasing valuation often takes precedence over building a solid business model.
How Nykaa Changed the Beauty Game?
What made Nykaa truly special was its unique approach to retail. It wasn’t just an online store—it was an experience. From day one, Nykaa focused on education and empowerment. The platform featured blogs, tutorials, and expert advice, helping customers understand which products suited their skin type, hair concerns, and personal style.
Beyond content, Nykaa created an unmatched shopping experience by offering a vast selection of products across categories. Whether it was high-end luxury brands, affordable Indian favorites, or Nykaa’s own private-label products, there was something for everyone. The platform also made a bold move by expanding into physical retail, launching a chain of three offline store formats: Nykaa Luxe for premium brands, Nykaa On Trend for curated selections, and Nykaa Kiosks in high-traffic areas.
This omnichannel strategy helped Nykaa seamlessly blend online convenience with offline trust, giving customers the best of both worlds.
Marketing: Nykaa’s Secret Weapon
Nykaa didn’t just sell beauty—it sold an aspirational lifestyle through powerful digital marketing. The brand’s strategy was deeply rooted in social media, influencer marketing, and content creation.
Nykaa strategically managed multiple social media accounts, tailoring content for different segments. Its YouTube channel became a beauty destination, offering makeup tutorials, skincare tips, and DIY hacks, engaging audiences while subtly driving sales.
By collaborating with beauty influencers, Nykaa built a strong community-driven brand presence. It also leveraged event sponsorships, such as Femina Miss India and college fests like Mood Indigo and the Red Brick Summit at IIM Ahmedabad, ensuring visibility among young, aspirational customers.
Nykaa’s Landmark IPO: A Beauty Unicorn
By 2021, Nykaa had gone from a small startup to a beauty and fashion powerhouse. When the company decided to go public, it created a massive buzz in the financial world.
Unlike many startups that were still struggling to turn a profit, Nykaa had a solid business model and was profitable before its IPO. This made it a rare and highly attractive investment opportunity. The IPO was oversubscribed 82 times, and Nykaa’s market value skyrocketed to $13 billion on listing day.
Falguni Nayar became India’s richest self-made female billionaire, proving that entrepreneurship isn’t just for the young—it’s for anyone with determination, foresight, and the courage to take risks.
What lies ahead?
By 2024, Nykaa had transformed into an empire, offering over 1.2 lakh products from 1,900+ brands. It expanded into physical retail with 187 stores across 68 cities, supported by 44 warehouses and 37 fulfillment centers. With over 21 million users and nearly 10 million website visits a month, Nykaa had become a dominant force in Indian beauty and fashion retail.
Nykaa isn’t stopping anytime soon. The brand is heavily investing in physical retail expansion, planning to double its store count from 187 to 400 by 2027. The fashion vertical is expected to grow 2.5-3X in the next three years, and its omnichannel strategy is blurring the lines between online and offline shopping.
By staying ahead of trends, strengthening customer relationships, and constantly evolving, Nykaa is setting lofty goals for the future—and crushing them.
Key Takeaway: Beyond a Beauty Brand
Nykaa’s journey is more than just a business success—it’s a blueprint for breaking barriers. Falguni Nayar proved that age, industry background, or conventional paths don’t define an entrepreneur’s potential. By identifying an underserved market, prioritizing customer trust, and embracing an omnichannel strategy, Nykaa transformed the beauty retail landscape in India. Her story is a testament to the power of resilience, calculated risks, and staying ahead of trends. Whether you’re a budding entrepreneur or an industry leader, Nykaa’s rise serves as a powerful reminder—bold ideas, when backed by strong execution, can build empires.
