The company introduced on Tuesday its private label products in the bath and bodycare category.
Nykaa.com, run by FSN Ecommerce Ventures Pvt. Ltd, is eyeing a near three-fold jump in revenue and is looking to expand its private label offering, as the online retailer of fashion and beauty products looks to turn profitable in the next 10-12 months.
The firm, which will end this year with sales of Rs.80-100 crore, is likely to report a revenue of Rs.240-300 crore by March 2017, said founder Falguni Nayar, a former investment banker.
Nykaa, which raised $9.5 million in October, is also looking to raise Rs.90-100 crore in the next 6-10 months to support its private label business and expand into offline stores, Nayar said.
Nykaa on Tuesday introduced its private label products in the bath and bodycare category. The company ventured into private labels with the launch of its nail paints in November 2015.
According to Nayar, Nykaa’s move into private labels was triggered by the push towards improving financial metrics as well as a gap in the market.
“Customers are always looking for choices,” she said. “Therefore this launch of the native Nykaa beauty brand is in line with our long term goal by offering quality products at value for money prices.”
After nail paints and bath and body products,Nykaa is expected to launch its own line of kohl, lipsticks, perfumes and make-up in the next 3-12 month period.
The company expects private labels to contribute about 15% of overall revenues in the next three to four years.
Nykaa has also opened offline stores and currently has one at Delhi airport. It will be opening three more in Mumbai, Bengaluru and Delhi in the next quarter. It expects offline stores to generate 10% of overall revenue by 2020.
Nykaa claims to get about five million monthly visitors on its website and generate 100,000 orders with an average basket size of Rs.1,400. Gross margins across categories range between 8-30%, according to the firm.
The app contributes 50% sales of the company.
Nykaa, which until recently was getting 80% of its business from women, is seeing strong demand from men’s category as well. The company is looking to expand its offering in the men’s segment too, said Nayar.
Popular items sold under this segment are hair care products, anti-dandruff items and the grooming range. With more than 400 brands and 40,000 products, Nykaa is currently available across 900 cities in the country.
Founded in 2012, Nykaa is backed by investors, including the family offices of Marico Ltd chairman Harsh Mariwala and Hexaware Technologies Ltd chairman Atul Nishar.