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

Strategic vision and market positioning

• Positioned as India's leading omnichannel beauty and lifestyle retailer, with a 33 million customer base, 1.7 billion annual visits, and 30%+ online beauty market share, targeting a $30bn+ TAM.

• Focused on quality growth, customer acquisition, and retention, with a disciplined approach to unit economics and profitability across verticals.

• Expanding omnichannel presence, aiming to double store count in 3-4 years and grow eB2B platform to serve 1,000+ cities.

• Expansion into international markets via Nysaa in the GCC, targeting 70 stores and 7%-10% market share by 2028.

• Emphasizes technology, data-driven personalization, and content-led education to drive consumer engagement and market expansion.

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 through FY28.

• Retail store count grew from 77 in FY21 to 187 in FY24, targeting 400+ by FY28, with retail GMV expected to grow 40%+ annually.

• Own brands contribute INR 1,095 crore GMV (13.1% of beauty GMV), with Dot & Key, Nykaa Cosmetics, and K Beauty as top performers; several brands achieving Rs 1.5-6 bn annualized GMV.

• eB2B Superstore business serves 200,000+ retailers in 1,000+ cities, with INR 600 crore GMV and rapid scale-up, focusing on profitable, quality growth.

• Fashion vertical targets 2.5x-3x NSV growth over three years, with a focus on premiumization, curation, and exclusive partnerships (e.g., Revolve, Foot Locker).

Financial performance and capital allocation

• 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%; PAT and PBT grew 80%-90%.

• Over three years, revenue and gross profit tripled, driven by cost optimization in fulfillment, marketing, and distribution.

• Peak CapEx occurred in FY23; FY24 CapEx halved, with future investments focused on store rollout and selective warehousing.

• Fashion business expected to be EBITDA positive by FY26, with incremental investments of $12M-$15M; eB2B path to profitability is longer but improving.

• Total capital raised to date is $140M, with strong internal accruals funding ongoing growth.