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How Nykaa Is Digitally Transforming The Indian Beauty & Fashion

November 28, 2025November 28, 2025startupstoryhubComment(0)

The Indian beauty and lifestyle market has seen great heights, and it has been the most instrumental role player in this revolution. Now, Nykaa is one of the leading beauty, wellness, and fashion e-commerce and retail companies in India. In doing so, it has created visibility for premium brands, Indian or international, that were once hard to access, in a world of millions of consumers across online and offline channels. Over the course of a few years, Nykaa has made a name for itself and has contributed to how the modern Indian shops.

Table of Contents

Who Started Nykaa?

Nykaa was established by investment banker Falguni Nayar, who was with Kotak Mahindra Group for almost 20 years. Abena started her own company after quitting an impressive corporate job, pursuing a meaningful venture in beauty and retail. Realizing the market gap, she thought of a platform where Indian consumers can discover and try different beauty products with convenience. Today, she is one of the world’s brightest self-made women entrepreneurs.

When Was Nykaa Started?

Launched in 2012, when online retail was just emerging in India, and beauty e-commerce had a huge white space. It started as an emerging ecommerce platform emerging business selling cosmetics and beauty essentials later spread like a wild flower to more wellness, personal care, grooming, and fashion ranges. The company transformed a nascent venture into a publicly traded powerhouse, eventually being the first woman-led startup to go public in India, during its years of growth.

Also Read : Nykaa Fashion |Do A Barrel Roll

What Nykaa Is About: Concept & Vision

A beauty-centric marketplace with an expansive suite of categories, including cosmetics, skincare, haircare, personal care, beauty-related appliances, wellness products, grooming products, and, later added, apparel and accessories via Nykaa Fashion. Nykaa in Sanskrit means heroine, and resonates the core brand philosophy with empowerment, individualism, and confidence.

Nykaa has always envisioned enabling consumption by providing: Quality beauty and fashion products from legit sources
A trustworthy shopping experience
Expert education and beauty guidance
Availability of international and premium brands

It garnered rapid popularity not just with the myriad of products, but also with how it educated customers: blogs, product reviews, tutorial videos, masterclasses, and influencers.

The Journey of Nykaa: From Startup to IPO Success

Nykaa’s growth story is one of the inspiring business success stories of India. Having started as an online marketplace, it diversified into various retail formats, which include:

Nykaa. com (beauty e-commerce)
Nykaa Fashion (apparel, footwear, accessories)
Nykaa Man (grooming and lifestyle)
Nykaa PRO (professional salon products)

In 2021 of Nykaa’s IPO received an overwhelming response from the investors. It became one of a small number of profitable startups to go public, earning it a billion-dollar valuation and its founder the title of India’s richest self-made woman.

Business Model of Nykaa

Nykaa runs on a hybrid retail business model, which comprises:

Inventory-based E-commerce

Nykaa authenticates products by buying only from brands and distributors instead of merely providing a marketplace for sellers, a common practice in the e-commerce space.

Physical Retail Stores
Nykaa has 160+ Stores nationally in the following formats:

Nykaa Luxe
Nykaa On-Trend
Nykaa Kiosks

Private Label Products

The company also manufactures and sells its own proprietary brands, including:

Nykaa Cosmetics
Nykaa Naturals
Kay Beauty (with Kat Kaif)

The private labels account for a large chunk of the revenue and brand identity.

Omnichannel Strategy

They allow consumers to shop online and pick up products offline or shop in stores and order online, furnishing a seamless experience.

Reasons Behind Nykaa’s Success

Some key drivers behind Nykaa’s growth were as follows:

✔ Strong Focus on Authenticity

✔ Strategy of Customer Education & Content

✔ Wide Product Range

✔ Technology-Driven Approach

✔ Celebrity & Influencer Collaborations

Challenges Faced by Nykaa

Despite all its success, Nykaa also had its share of challenges:

Severe competition with e-commerce giants like Amazon, Flipkart
Logistics and supply chain complexities
It was the early days of consumer trust-building
Balancing profitability with growth
Handling inventory-heavy operations

Undeterred by these challenges, Nykaa kept scaling sensibly and profitably, with a lot of planning and financial discipline.

Nykaa Fashion: Expansion Beyond Beauty

In 2018, Nykaa launched Nykaa Fashion, offering:

Clothing
Footwear
Jewelry
Handbags
Luxury designer wear

The segment quickly grew, onboarding leading designers and boutique labels, becoming a preferred destination for fashion lovers. Today, Nykaa Fashion hosts both premium and affordable lifestyle brands.

How did Nykaa affect the Indian Market?

Nykaa has transformed the beauty & shopping culture in India by:

Making regular online purchases of skincare and cosmetics
Bringing global brands to tier-2 and tier-3 cities
Focusing on self-care and grooming irrespective of gender
Creating employment opportunities for thousands
Inspiring women entrepreneurs across India

Nykaa’s Future

The future strategy involves:

Expanding offline store presence
Bracing Up Wellness, Health Supplements, and Personal Care
International collaborations
Sustainable packaging and eco-friendly products
Upgrades to tech for virtual try-ons and beauty in general by AI

With a loyal customer base and regular innovation, Nykaa is likely to continue being one of India’s premier lifestyle and beauty brands.

Conclusion

The Nykaa story remains a shining testimony to how vision, audacity & innovation can disrupt any market. Founded by Falguni Nayar in 2012 with a mission of consumer empowerment, Nykaa transformed from a single beauty e-store to one of India’s most trusted multibrand players in the beauty and wellness space. And by being true to themselves, educating the customers, using the technology as well as having the customer-first mentality, Nykaa is now a trusted brand for millions of people for beauty, wellness, as well as fashion products. The way it went from being a start-up to an IPO has motivated entrepreneurs all around the world, and the story shows that dedication and reason can bring remarkable honors.

Q1. Who is the founder of Nykaa?

Nykaa is a brainchild of former investment banker Falguni Nayar.

Q2. When was Nykaa started?

Nykaa was started in 2012

Q3. Is Nykaa an Indian company?

Yes, Nykaa is an Indian company based in Mumbai.

Q4. What does the brand name Nykaa mean?

Nykaa is derived from the Sanskrit word “Nayika,” which means heroine or the one in the limelight.

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Startup India

The entrepreneurial scenario in India has changed over the last decade. The Indian government is supporting innovation through its Startup India initiative, creating employment opportunities and accelerating economic growth. In this blog, let's discuss Startup India, including its objectives, benefits, and eligibility criteria; also, know how to get a startup registered under this initiative.

What is Startups ?

A startup is the early stage of a company that is formed to develop a unique product or service, introduce it into the market, and scale it to make substantial revenues. Startups are an important part of innovation, job creation, and diversification in the economy. In India, startups play a critical role in driving technology adoption and solving complex challenges in areas such as healthcare, education, and financial inclusion.

Characteristics of a Startup

Innovation: Key concentration in developing new products, services, or processes.
Scalability: Ability to grow rapidly with low incremental costs.
Disruption: Challenge traditional business models or industries.

Importance of Startups in India

Job Creation: Startups are significant employment generators.
Economic Growth: Contribute to GDP by introducing new industries.
Technological Advancement: Drive innovation and technology adoption.

What is the Startup India Initiative?

Startup India is one of the flagship initiatives of the Government of India, launched on January 16, 2016. It aims to build a robust ecosystem that nurtures innovation and startups across the country. The idea is to give an impetus to economic growth and employment generation in a substantial way. Startup India seeks to encourage entrepreneurship by giving a boost to innovation and design, thus leading to the growth and success of the startup ecosystem.

Standup India Scheme Standup India scheme was announced on April 5, 2016, to finance new enterprises, to boost the entrepreneurship culture in India. The program ensures the availability of loans through the Scheduled Commercial Banks (SCBs), between ₹10 lakh and ₹1 crore to at least one member of the Scheduled Caste (SC) and Scheduled Tribe (ST), and at least one woman, per bank branch. The support in this new scheme is granted to businesses in the trading, services, or manufacturing sectors. This will supposedly help about 250,000 borrowers.

Key Objectives of Startup India

Making Business Easier: Simple rules, compliance, and legal steps.

Financial Help: Provide access to government funds and venture capital.

Building Skills: Offer training and mentorship programs.

Encouraging Innovation: Support research and development with grants.

Features of Startup India

Startup India Hub: This is a place where startups can connect with investors and mentors.

Fund of Funds for Startups (FFS): This is a ₹10,000 crore fund managed by the Small Industries Development Bank of India (SIDBI).

Tax Benefits: Eligible startups can get exemptions from income tax and capital gains tax.

Startup Recognition: Startups can receive official recognition from the Department for Promotion of Industry and Internal Trade (DPIIT).

The Startup India scheme eligibility criteria

If you want to get funding through the Start-up India scheme, you need to meet certain eligibility requirements. Knowing these requirements well will help you successfully go through the application process.

Business Experience: Start-ups applying for this scheme must have been operating for more than five years.
Age Requirement: Applicants must be at least 18 years old.
Company Structure: To get funds under this scheme, the company must be either a partnership or a private limited company.
Turnover Limit: The company should have an annual turnover of no more than Rs. 25 crore.
No Reconstruction: Start-ups that have emerged from the splitting or restructuring of an existing business are not eligible for this scheme. Companies that have divided an organization into two or more parts will be disqualified.

If a company is developing a new product or service, it can benefit from the Start-up India policy.

Here are the requirements:

The start-up must create, utilize, or sell a product or service that is based on new technology or intellectual property.
The focus should be on enhancing an existing product or developing a new one that adds value for customers or improves workflow.
The start-up must not engage in projects that are not unique or do not provide value to customers or enhance workflow.

To get a Startup India loan, start-ups must secure various approvals and submit specific documents:

Obtain approval from the Inter-Ministerial Board under the Department of Industrial Policy and Promotion (DIPP).
Acquire a recommendation from an incubator affiliated with a recognized post-graduate college.
Secure a recommendation from a government-recognized incubator.
File a patent for your product or service and have it published in the Indian Patent Office Journals.
If your services involve funding and equity, register with the Securities and Exchange Board of India (SEBI).
Provide a funding letter from any state or central government scheme that supports innovation.

How to Register Under Startup Under Startup India Scheme?

Step 1: Start Your Business

The first step in starting your business is to choose a legal structure, such as a Private Limited Company, Partnership, or Limited Liability Partnership (LLP). You will need to complete the standard registration process, which involves submitting an application and obtaining a Certificate of Incorporation or Partnership registration.

Step 2: Register with Startup India

Once you have created your business, the next step is to register it as a startup. This process is straightforward and can be completed online. First, visit the Startup India website and click the 'Register' button. Enter your name, email address, and mobile number, then create a password and click 'Register.' You will receive a One-Time Password (OTP) in your email. Enter this OTP and provide additional information, such as your user type, business name, and the stage of your startup. Finally, click 'Submit' to create your Startup India profile. Completing this registration will help your business be recognized as a startup under the Startup India scheme, granting you access to various benefits and support.

Step 3: Obtain DPIIT Recognition

After creating your profile on the Startup India website, the next step is obtaining recognition from the Department for Promotion of Industry and Internal Trade (DPIIT). This recognition provides benefits such as quality intellectual property services, relaxed public procurement rules, self-certification for labour and environmental laws, simplified winding-up procedures, access to the Fund of Funds, and tax exemptions for three years.

Step 4: Submit the Documents for Registration

To complete the registration process and obtain DPIIT recognition for your startup, please submit the following documents:
1. The incorporation or registration certificate of your startup.
2. Proof of funding, if applicable.
3. An authorization letter from the company's authorized representative
4. Evidence of your concept, such as a website link, pitch deck, or video (this applies to startups at the validation, early traction, or scaling stage).
5. Information regarding any patents and trademarks you hold.
6. A list of any awards or certificates of recognition you have received.
7. Your Permanent Account Number (PAN).

Step 5: Self-Certification of Eligibility Conditions

You need to confirm that your business meets the following conditions:
1. Your business must be a Private Limited Company, Limited Liability Partnership (LLP), or partnership firm.
2. Your business has been registered in India for no more than five years.
3. Your company's turnover does not exceed ₹100 crore.
4. Your company is consistently innovating or improving existing systems.
5. Your business is based on an original idea, rather than a split or reorganization of an existing business.

Step 6: Obtain Your Recognition Number

When applying for registration, you will receive your recognition number immediately. The authority will send you the certificate of registration or incorporation after reviewing your uploaded documents. Ensure that you upload accurate information to avoid errors, as mistakes can lead to fines of up to 50% of your paid-up capital or a minimum of Rs. 25,000. By fulfilling the eligibility and registration requirements, your company can participate in the Startup India scheme and enjoy various benefits provided by the government.

Wrapping Up

The Startup India initiative has revolutionized the entrepreneurial landscape in India by offering financial, regulatory, and infrastructural support. If you’re an entrepreneur with an innovative idea, registering under this program can unlock numerous opportunities for growth and success. Begin your startup journey today and contribute to India’s transformation into a global hub for innovation.