MUMBAI: 5x growth in order volumes during beauty retailer nykaa’s 4-day sale starting last Friday, with average order values surging 46% on the first day alone. The ‘Nykaa Pink Friday’ sale is expected to rake in gross sales worth $12 million or about Rs 85 crore over the 4 days for Nykaa.
This is the second edition of the sale for the firm which clocked gross sales of $2.5 million last year. This would imply a 5x growth in order volumes and gross merchandise value since 2017.
“We had planned the sale to be at 3x of our usual order volumes and growth. But the first day alone saw orders surge 5x. We have been surpassing our budgeted revenue target by about 18% for the last couple of months. On the basis of this (sale) and the recent monthly growth, we believe we will be able to significantly exceed our net revenue target for FY19 to Rs 1,200 crore,” Falguni Nayar, Founder and CEO of Nykaa told ET.
The firm, which is backed by Sunil Munjal’s family office, consumer goods maker Marico’s Mariwala family office as also private equity fund Lighthouse Advisors amongst others, ended FY18 with Rs 570 crore in net revenue and had targeted net revenues to almost double to Rs 1,050 crore in FY19.
Nayar maintains that the firm ended October with Rs 110 crore in net revenue and the strong monthly growth over the last 3 months coupled with the boost during the 4-day sale period has led the firm to revise its net revenue projection upwards to Rs 1,200 crore.
Nykaa is the largest beauty retailer in India, with over 33% market share in India’s online beauty market as per industry estimates.
The 4-day sale saw the firm’s average order value of Rs 1500 rise 46% on the first day alone and over 33% on the remaining sale days.
Of the 1,000 brands that Nykaa features, about 65 are luxury brands which saw revenues during the sale, rise higher than the 15% share that they typically form.
Nykaa clocks about 1 million orders per month on an average during the non-sale season with new user addition pegged at about 35% of the overall customer base in October.
Nykaa gets 40 million monthly user visits from about 15 million unique visitors. During the sale, the firm saw 2.5 million visits during each day on an average. Nykaa claims to have 3 million monthly active users.
Nykaa last closed an investment of Rs 113 crore by Lighthouse Advisors through a secondary stake sale that valued the firm at about Rs 3000 crore, ET had reported in September.
The development was reported by ETRetail.com