Beauty and fashion giant Nykaa could experience a compound annual growth rate of approximately 20% comparing its 2024 financial year performance to its projected figures for 2027, according to brokerage firm Jeffries.
The growth rate could range from 15% in a less favourable scenario or jump up to 25% in a more favourable one, according to a note by Jeffries, ET Bureau reported. The business expects Nykaa’s order frequency to increase and noted that its gross merchandise value for its beauty, personal care, and fashion categories could increase at around 25% during the same time period.
“In the recent past, there has been a surge in interest from global brand partners,” wrote Jeffries in a note accessed by ET Tech. “With the strong consumption story in place and over dependence on China, the brands have accelerated their India plans. Nykaa itself has seen several new brand sign ups in the last few quarters.”
Nykaa has recently witnessed particular growth its ‘others’ category, which includes its business to business brand Superstore. In the 2024 financial year, the portion of the business grew by 59% year on year with a gross merchandise value of Rs 835 crore.
The business is also increasing its focus on the international market and launched its first brick-and-mortar store in Dubai in March this year. This, coupled with its expanding online presence in the UAE, is also expected to contribute to growth.
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