Imagine the time when we had to hop from shop to shop just to find the right black kajal, now all we have to do is open Nykaa, search for the product and place an order. Tuh-da! The order gets delivered right to our doorstep.
But aren’t you curious to know the story behind this startup and the woman who built it?
Yeah, you guessed it right. In today’s newsletter, we will be talking about Falguni Nayar and how she bootstrapped Nykaa.
Sounds amazing? Then keep reading!
Who is Falguni Nayar?
Falguni Nayar was born on February 19, 1963, in Mumbai, Maharashtra. She was raised in a Gujarati business family. Falguni studied at Sydenham College, and after completing her graduation, she pursued her MBA at IIM Ahmedabad. Later, her professional journey began in consulting with A.F. Ferguson & Co. In 1993, she joined the Kotak Mahindra Group and for over 18 years, she worked in various leadership roles, ultimately becoming the Managing Director of Kotak Mahindra Capital.
She has also served on the boards of various companies, like Tata Motors Limited and Aviva Life Insurance Company India Limited.
Building Nykaa
Falguni noticed a gap in the beauty industry; Indian women lacked access to quality beauty products online with variety, guidance, and trust. So at 50, she invested $2 million of her own capital and Nykaa was brought into existence from a small office space in Mumbai in 2012.
Nykaa is a beauty and lifestyle e-commerce platform that sells beauty, wellness and fashion products online and offline.
Some of her strategic moves:
- Created beauty tutorials and reviews to educate users.
- Launched private labels like Kay Beauty (with Katrina Kaif).
- Partnered with top global brands like Estée Lauder, MAC and Huda Beauty.
- Expanded from online to offline with physical Nykaa stores across major cities.
- Ventured into fashion with Nykaa Fashion for clothing and accessories.
Today, Nykaa offers 2,000+ brands and 200,000+ products and continues to hold a strong position in the market with a valuation of around ₹57,000 crore.
Her Impact on India’s Retail & Beauty Industry
Falguni Nayar brought a significant shift in how beauty and personal care products were viewed, purchased, and promoted in India.
Acceptance: Nykaa played a major role in normalising the use of makeup and skincare across different demographics. It encouraged open conversations around beauty, making it accessible for everyone.
Consumer Trust: Nykaa adopted an inventory-led model with strict quality checks, which helped build consumer trust in online beauty retail.
Platform for Domestic Brands: The platform offered visibility to Indian direct-to-consumer (D2C) brands.
Public Listing: In 2021, Nykaa became India’s first woman-led unicorn to go public. The IPO was oversubscribed by 82 times.
Her Leadership Style
Falguni Nayar’s leadership style is calm, focused, and deeply rooted in customer understanding.
Content Driven: Nykaa educated its users with videos, articles, and honest reviews. So that the users can understand before using it.
Empowering Women: Falguni actively pushed for women in leadership. Today Nykaa, boasts a women employment of over 70%.
Clarity of Purpose: Her goal was to make beauty accessible and inclusive, catering to all age groups and skin tones.
Awards & Recognitions
Falguni’s contribution has been widely recognised:
- Featured in Forbes India’s W-Power List
- Named in Fortune India’s Most Powerful Women
- Awarded EY Entrepreneur of the Year – Startup (2019)
- Listed in Asia’s Power Businesswomen
- DNA Women Achievers Awards 2023 in the FMCG category
Conclusion
Falguni Nayar’s journey proves that there is no perfect age or right moment to start. It’s your conviction that innovates and drives success. She built an empire with vision, patience, and understanding of her customers.
“Don’t be afraid to dream. The spotlight of your life should be on you” - Falguni Nayar
Thank you for reading! Also, who would you like to see in the spotlight next? Let us know in the comments below!
Alice Blue does not intend to influence any trading decisions. The content provided is solely for educational purposes.