Nykaa Boosts Marketing Budget to ₹995 Crore for FY25

Nykaa, the omnichannel beauty and fashion retailer, is ramping up its investments in artificial intelligence, personalization, and customer-centric technologies to drive its next phase of growth. According to Executive Chairperson and CEO Falguni Nayar, FY25 saw several strategic investments aimed at improving innovation, digital tools, and enhancing customer experience across both online and offline channels.

In its FY25 annual report, Nayar highlighted how technologies like AI, virtual try-ons, and personalized shopping experiences have become essential growth drivers for the platform.

Surge in Marketing Spend to ₹995 Crore

Nykaa's consolidated marketing and advertising expenditure jumped by 34.5% year-on-year to reach ₹994.82 crore in FY25. According to CFO P Ganesh, the marketing investment accounted for 12.5% of the company’s revenue, up from 11.6% in FY24.

Ganesh noted that this increase was part of a long-term strategy to drive category creation and acquire new customers. Flagship campaigns such as Nykaaland and Nykaawali Shaadi played a key role in enhancing brand visibility and equity.

9 Million New Customers Added in FY25

Thanks to its aggressive marketing and influencer-led campaigns, Nykaa acquired over 9 million new customers in FY25, boosting its cumulative customer base to over 42 million, a 28% year-on-year growth.

The platform’s focus on India’s Gen Z and customers from Tier-II and Tier-III markets proved to be a strategic move. Falguni Nayar noted that although Gen Z makes up 26% of the population, they are expected to influence nearly 50% of total spending by FY2030.

Retail Network Expands to 237 Stores Across 79 Cities

Nykaa’s offline retail expansion has seen significant momentum. Anchit Nayar, MD & CEO of Nykaa E-Retail, revealed that the company grew its retail footprint from 63 stores in 34 cities in FY20 to 237 stores across 79 cities in FY25.

The company’s Superstore initiative, launched in 2021 to cater to India’s unorganised beauty retail market, achieved a Gross Merchandise Value (GMV) of ₹941 crore in FY25. This accounted for 8% of Nykaa’s total beauty GMV, with the transacting retailer base increasing 15x to 2.76 lakh retailers by the end of March 2025.

Dual Strategy: Market Penetration and Premiumisation

Nykaa’s growth strategy is driven by deepening market reach and expanding premium offerings. Anchit Nayar stated that the company is betting big on body care and fragrances while also accelerating the premiumisation of its product portfolio.

He also emphasized plans to increase the store count to over 500 across more than 100 cities by FY2030, and grow GMV in the mid-20% range through enhanced customer acquisition and product upgrades.

Strong Financial Growth: Profit, Revenue, and EBITDA Surge

Nykaa posted a profit after tax of ₹72 crore in FY25, marking an 81% year-on-year increase. The company’s net revenue rose to ₹7,950 crore, while EBITDA jumped 37% to ₹474 crore.

Capex for the year stood at ₹128 crore, up 11% YoY, primarily driven by retail network expansion and investments in automation and technology.

House of Brands Hits ₹2,100 Crore GMV

Nykaa’s in-house labels under the House of Brands umbrella have continued to perform well, reaching a combined GMV of ₹2,100 crore in FY25. The top-performing brands include:

• Dot & Key – ₹900 crore GMV

• Nykaa Cosmetics – ₹350 crore GMV

• Kay Beauty – ₹250 crore GMV

These brands are a crucial part of Nykaa's strategy to own high-margin categories and build long-term brand value.