FSN E-Commerce Ventures Limited, the parent company of the ecommerce platform Nykaa, has projected a revenue growth of around 22-23% year-on-year for the first quarter of FY2025. The company, which operates in two segments—Beauty and Fashion—expects gross merchandise value (GMV) for the quarter to be in the mid-twenties range on a YoY basis. GMV, a key metric for ecommerce platforms like Nykaa, refers to the total value of all sales conducted through the platform over a specific period.
Starting this quarter, Nykaa will begin vertical-wise segment reporting, separating its Beauty and Fashion segments. The Beauty segment, which includes the Nykaa beauty platform, beauty-owned brands, physical stores, its eB2B distribution business ‘Superstore by Nykaa,’ and the Nykaa Man BPC business, forecasts revenue growth of around 22-23%. The company added that the Beauty vertical’s GMV growth is expected to be higher, in the high 20s YoY, reflecting the long-term growth trajectory of the Beauty and Personal Care industry.
Despite facing slower growth in its physical retail business due to external factors such as elections and heatwaves across North India, Nykaa remains optimistic about its Beauty segment. The company stated, “The overall Fashion industry in India continues to face challenges with a muted demand environment. The growth was further impacted in this seasonally weak quarter due to limited weddings and festivities.”
Nykaa’s Fashion vertical, which includes the Nykaa Fashion platform and fashion-owned brands, is expected to deliver a “healthy performance” with revenue growth of around 20% YoY. However, the GMV for the Fashion segment is projected to be lower, in the mid-teens YoY.