MPW 2023: Why Falguni Nayar turned entrepreneur with Nykaa at 49

Bold and fast is the name of the game in the wild world of start-ups, and nobody has embodied that in the past few years quite like Falguni Nayar. The 60-year-old former managing director of Kotak Mahindra Capital defied conventional start-up norms when she traded her banker hat for a start-up adventure, launching Nykaa in 2012 at the age of 49. She built an entirely new category within the internet economy and achieved a rare feat for an online commerce business by listing it as a profitable entity in just about nine years. Along the way, she earned the title of India’s richest self-made woman billionaire. And with that, she has stormed into the Hall of Fame of BT’s Most Powerful Women in Business.

“One of our biggest values is to be bold but good; it enables our employees to dream big but also do the right things in the right way, not taking any shortcuts for success,” Nayar says.

Nykaa was born out of Nayar’s dream of creating a brand that’ll have a lasting impact on consumers. In the process, it has transformed beauty standards and perceptions in India in myriad ways.

When Nykaa began, India’s per capita beauty spending was a meagre $6 to $8. Thanks to Nykaa and the many brands its success has spawned, it sits at $15 now. Nayar sees Nykaa as an instrumental force, crediting its education-centric growth approach as pivotal in driving this transformation. She believes this is just the tip of the iceberg, pointing to countries like Vietnam, where per capita beauty consumption is around $40 with similar income levels as India.

On the growth front, Nykaa reported a consolidated GMV of `9,743 crore and net revenue of `5,143 crore, securing a profit of `21 crore in FY23. The company services 27,000 pin codes in the country, and more than 60 per cent of its business comes from Tier II cities and beyond.

“I always wanted to start my own business before I turned 50 because I knew it takes time to build and settle a business... We have achieved a great product market fit, consumers love our brand, we maintain deep relationships with our partners, and employees love to work with us. But beyond all that, I’m here to build a very sustainable company that is here to stay for a very long time,” she says. Considering her relentless drive, that dream might be within reach.

@binu_t_paul