Beauty retailer Nykaa expands into Qatar

Online beauty products retailer Nykaa has expanded into Qatar almost a month after it announced plans to expand in the Gulf Cooperation Council (GCC).

Nessa International Holdings Ltd, a stepdown subsidiary of Nykaa’s parent FSN E-Commerce Ventures Ltd, has incorporated a new wholly owned subsidiary in Qatar, the company told the Indian exchanges on Thursday.

Nysaa Cosmetics Trading, or Nysaa Qatar, a single-member limited liability company, will trade in women’s cosmetics, toiletry and beauty and hair care products, apart from perfumes, and beauty soap, the company said.

The newly incorporated company will have a subscribed share capital of Qatari riyal 500,000 (about $137,000, or ₹1.14 crore)

Nessa International will hold 100% of the shareholding of Nysaa Qatar.

As the FSN E-Commerce Ventures, through FSN International Ltd (a wholly owned subsidiary), holds 55% of shareholding of Nessa International, the company will indirectly hold 55% of shareholding of Nysaa Qatar, it said.

Nysaa Qatar is a newly incorporated company and is yet to commence its business operations, the company said.

The beauty retailer had in May said it would invest ₹20 crore (about $2.4 million) in FSN International Ltd, its wholly owned subsidiary. FSN International will, in turn, make another $1.9 million investment in one of its own overseas arm, Nessa International Holdings Ltd, the company said.

Nykaa had launched its omnichannel beauty platform Nysaa in the GCC region in the January-to-March quarter.

Its Nysaa e-commerce platform was launched in January, while its first store was opened in Dubai in March.

The GCC region boasts a beauty and personal care products market valued at $30 billion, accompanied by one of the highest per capita expenditures in the segment—about $500.

FSN International was incorporated in 2019 in India, and like its parent firm, sells a range of beauty, wellness, fitness, personal care, health care, skin care, and hair care products across channels.

Nykaa’s global arm so far operated three subsidiaries: FSN Global FZE in Dubai; Nykaa International UK Ltd; and Nessa International Holdings Ltd in the United Arab Emirates.

Nysaa Cosmetics Trading, or Nysaa Qatar, will be its fourth.

Nessa International, which operates Nysaa, was incorporated in October 2022 and began its operations in FY24.

Revenues at FSN International have more than doubled from ₹31.17 million in fiscal 2022 to ₹73.96 million in fiscal 2024.