Business Model of Nykaa ~ Business Plan, Revenue Model, SWOT Analysis


Nykaa is an Indian e-commerce company, founded by Falguni Nayyar in 2012 and headquartered in Mumbai. It sells beauty, wellness and fashion products across websites, mobile apps and 100+ offline stores. The business Model of Nykaa involves its business plan, Revenue model, its competitors, SWOT Analysis and many more.

With over 1 lakh beauty merchandise and over 800+ Nykaa is extra than prepared to fulfill customers’ needs. If you are also seeking to make funding on-call for cosmetic product transport and questioning approximately how many tons it costs to develop an on-demand app like Nykaa.

Business Model

Nykaa business model follows a stock-primarily based commercial enterprise version wherein all gadgets are stored at a particular area in an inventory. Processing of orders is carried out according to the availability of merchandise in the inventory. Nykaa is using this stock-primarily based commercial enterprise version, also buys products without delay from shops and manufacturers.

Nykaa has a content approach that is aimed at educating and generating awareness among customers who are seeking out brilliant shopping to enjoy with the advanced era.

With over 1 lakh beauty merchandise and over 800+ Nykaa is extra than prepared to fulfill customers’ needs. If you are also seeking to make funding on-call for cosmetic product transport and questioning approximately how many tons it costs to develop an on-demand app like Nykaa.

Revenue Model

Since 2012, Nykaa has raised money through multiple rounds of funding. In March 2020, it raised ₹100 crore from Steadview Capital, thus making it a unicorn startup valued at ₹85 billion (US$1.1 billion). This was followed by another tranche of ₹67 crore funding by Steadview in May 2020. Two Bollywood actress invested in the company through secondary funding. Katrina Kaif invested ₹2.04 crore in the company in 2018, and Alia Bhatt invested ₹4.95 crore in July 2020. In November 2020, global asset management firm Fidelity invested in the company through a secondary sale of shares from an existing equity investor.

Nykaa opened its initial public offering (IPO) on 28 October 2021. The IPO was oversubscribed 81.78 times, raising ₹5,352 crore at a valuation of US$7.4 billion. Nykaa was publicly listed on the NSE and BSE on 10 November 2021, and its price rose by 89.2% on opening day, valuing the company at nearly US$13 billion.

Nykaa is well worth $1. 2 billion, making the splendor brand the maximum a hit startup in the USA. To its stock model, Nykaa efficiently broke even in 2017, just 5 years after the web splendor store began operations.

Nykaa app has revolutionized the cosmetic industry and made an exceptional person base within a quick period. The beauty enterprise has grown now greater than ever and has turned out to be necessary for all and sundry, now not just women.

SWOT Analysis


Strengths come from positive aspects of key resources & capabilities.

Superior product and services quality: There are enough evidences that with such a high quality of products and services, can compete with other global players in international market.

Successful Go To Market Track Record: has a highly successful track record of both launching new products in the domestic market but also catering to the various market based on the insights from local consumers.

Strong relationship with existing suppliers: As an incumbent in the industry, has strong relationship with its suppliers and other members of the supply chain. According to Paul A. Gompers, Anjali Raina, Rachna Chawla , the organization can increase products and services by leveraging the skills of its suppliers and supply chain partners.

Diverse Product Portfolio of The products and brand portfolio of is enabling it to target various segments in the domestic market at the same time.

Managing Regulations and Business Environment: operates in an environment where it faces numerous regulations and government diktats.


It limits the ability of the firm to build a sustainable competitive advantage.

Low Return on Investment: Even though is having a stable balance sheet, one metrics that needs reflection is “Return on Invested Capital”.

– business model can be easily replicated even with the number of patents and copyrights the company possess. The intellectual property rights are very difficult to implement in the industry that operates in.

Inventory Management: Based on the details, is not efficiently managing the inventory and cash cycle.

Organization Culture: It seems that organization culture of is still dominated by turf wars within various divisions, leading to managers keeping information close to their chests.

Customer Dissatisfaction: Even though the demand for products have not gone down but there is a simmering sense of dissatisfaction among the customers of Nykaa.

Lack of critical talent: is struggling to restructure processes in light of developments in the field of Artificial Intelligence (AI) and machine learning.


Opportunities are macro environment factors and developments that can leverage either to consolidate existing market position or use them for further expansion.

Lucrative Opportunities in International Markets: is in prime position to tap on those opportunities and grow the market share.

E-Commerce and Social Media Oriented Business Models: E-commerce business model can help to tie up with local suppliers and logistics provider in international market.

Growing Market Size and Evolving Preferences of Consumers: Over the last decade and half the market size has grown at brisk pace. The influx of new customers has also led to evolution of consumer preferences and tastes.

Increase in Consumer Disposable Income: can use the increasing disposable income to build a new business model where customers start paying progressively for using its products.

Access to International Talent in Global Market: One of the challenges Nykaa facing right now is limited access to high level talent market because of limited budget. Expansion into international market can help Nykaa to tap into international talent market.


Threats are macro environment factors and developments that can derail business model of Nykaa.

Growing Protectionism: should hedge the risk against growing protectionism ranging from – storing data into international market to diversifying risk by operating into countries at different economic cycle.

Squeezing Middle Class in Developed and Developing World: The growing inequality is one of the biggest threat to not only globalization but also to capitalism. first hand witnessed the impact of it where it has seen lower demand of its products from middle class customers in US and EU market.

Culture of sticky prices in the industry: operates in an industry where there is a culture of sticky prices.

International Geo-Political Factors: Developments such as Brexit, Russian sanctions, foreign exchange crisis & inflation in Venezuela, lower oil prices etc are impacting international business environment.

Increasing costs component for working in developed market because of environmental regulations: Nykaa has to deal with these costs as governments are trying to levy higher environmental taxes to promote cleaner options. For Nykaa, it may result into higher logistics costs and higher packaging costs.


Nykaa is one of the most successful woman-led startup in the world. Numerous customers are satisfied to receive the beauty products at home. It is also vital to provide the clients with top-notch offerings. This will bring about the growth of your enterprise within the market and it will stand precise at the structures integrated with the app.