Nykaa sets sights on expansion into GCC markets

Online beauty products retailer Nykaa’s parent FSN E-Commerce Ventures is doubling down on investments in the Middle East as it looks to expand its presence in the Gulf Cooperation Council (GCC) countries.

Following a board meeting this week, the beauty retailer said it will 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 said it launched its omnichannel beauty platform Nysaa in the GCC region in the January-to-March quarter. The Nysaa e-commerce platform was launched in January and its first store was opened in Dubai in March, the investor presentation showed.

“We launched our ecommerce platform, Nysaa.com, in this quarter, along with the launch of our first Nysaa store at City Centre Mirdif in Dubai,” the company said in its earnings release, adding that its Nysaa beauty store presents a curated selection of renowned international brands, including Kylie Cosmetics, Kay Beauty, Rituals, Stila, Augustinus Bader, Foreo, and Ralph Lauren apart from other renowned brand.

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—approximately $500. This offers Nysaa “an opportunity to replicate Nykaa’s successful omnichannel playbook,” the company noted.

Nysaa has onboarded 171 global brands on its online channel and hosts 51 brands at its Dubai store.

“We believe Nysaa could be a significant business over time as there is a clear market opportunity,” Nykaa founder and chief executive Falguni Nayar said during the analysts call.

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 global arm operates three subsidiaries: FSN Global FZE in Dubai; Nykaa International UK Ltd; and Nessa International Holdings Ltd in the United Arab Emirates.

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. Nessa reported revenues of ₹11.39 in the past fiscal.