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Focused on business efficiency and unit economics, says Nykaa in regulatory update, ET Retail


New Delhi: Beauty and fashion e-tailer Nykaa focused on business efficiency and unit economics in the financial year that ended March 31, 2023, the company said in a ‘Revenue Update’ on Wednesday evening.

The e-commerce platform said that overall it saw healthy revenue growth trends. In the quarter that ended March 31, 2023, the company claimed to have recorded stronger revenue growth led by sustained consumption by tier 1 consumers against the backdrop of subdued industry growth.

“For FY23 at the consolidated level, we expect to sustain our percentage growth rate in line with 9MFY23.”

Sharing a category-wise update, Nykaa said that its beauty and personal care (BPC) category reported strong demand especially fueled by its ‘Pink Love’ sale launched during Q4.

“BPC business has seen higher year-on-year growth rates in Q4 FY23 as compared to the year-on-year growth rates seen in Q3 FY23,” the company said adding that for BPC its average order values and conversion rates remained robust, thus aiding revenue growth.

In the previous quarter, the brand witnessed a 26 per cent increase in its orders to 9.5 million, while its order conversion improved to 3.8 per cent.

For FY23, Nykaa expects its percentage revenue growth rates for BPC business to be in line with 9M FY23, early-thirties. In Q3, the company reported a GMV of Rs 1,901.4 crore for BPC business.

For its fashion business, the e-tailer said that it saw an impact on the growth of its net sales value (NSV) this quarter due to consumer pullback in discretionary spending.

“For Q4 FY23, we expect our percentage revenue growth rates in the Fashion business to come through in the late teens,” Nykaa said, highlighting that the expected growth comes on the back of the company’s focus on business efficiency and unit economics.

For Nykaa Fashion, the retailer claims to have steadily improved its average order values and conversion rates. In the October-December quarter, Nykaa’s fashion segment’s GMV grew by 50 per cent on a YoY basis with 1.7 million orders and order conversion of 1.2 per cent.

  • Published On Apr 5, 2023 at 07:27 PM IST

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