Falguni Nayar founded Nykaa in 2012 after a successful investment banking career, building it into India's leading beauty and lifestyle platform and the country's first woman-led unicorn.
From investment banker to billionaire entrepreneur, explore Falguni Nayar’s journey of building Nykaa into India’s first woman-led unicorn and a publicly listed beauty powerhouse.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy.
Table of Contents
- Who is Falguni Nayar?
- Early Life and Education
- Career Before Nykaa
- How Nykaa Started
- Funding History
- Revenue Growth and Recent Challenges
- Public Recognition
- Nykaa vs Competitors
- Investor Perspective
- Founder Timeline
- Key Takeaways
- FAQs
- Sources
Who is Falguni Nayar?
Falguni Nayar is the founder, executive chairperson, managing director, and CEO of Nykaa, India’s leading beauty, fashion, and lifestyle e-commerce platform. She spent nearly two decades in investment banking before starting the company at 49, using her own savings. She built Nykaa into India’s first woman-led unicorn and, at IPO, became the country’s wealthiest self-made woman entrepreneur.
Early Life and Education
Nayar completed her Bachelor of Commerce at Sydenham College of Commerce and Economics in Mumbai. She went on to earn an MBA in General Finance from the Indian Institute of Management, Ahmedabad.
Career Before Nykaa
Nayar began her career at A.F. Ferguson & Co. before moving into investment banking at Kotak Securities and later Kotak Mahindra Capital, where she spent close to two decades. She rose to Managing Director, heading institutional equities and international business, and led numerous Indian companies through their own public listings as a banker. In 2012, at 49, she left this stable career to start something of her own in an industry she had no direct operating experience in.
How Nykaa Started
Nayar founded Nykaa in April 2012, spotting a gap in India’s beauty retail market compared to the mature marketplaces she had observed abroad. The company launched with just three employees and completed around 60 orders in its early days, built on prioritizing product accuracy over volume. Nykaa began commercial operations in 2013, opened its first physical store at Delhi airport in 2014, and launched its own brand, Nykaa Cosmetics, in 2015, proving content-led discovery and owned brands could work together.
Funding History
| Round | Year | Amount | Lead Investor(s) |
| Series B/C | 2015-16 | Not publicly disclosed | TVS Shriram Growth Fund |
| Secondary round | Sep 2018 | $15.72 million | Lighthouse India Fund III |
| Series E | 2019 | $14.4 million | TPG Growth |
| Growth round | Mar 2020 | $13 million | Steadview Capital |
| Secondary sale | Nov 2020 | Not publicly disclosed | Fidelity |
| IPO | Nov 2021 | ₹5,352 crore ($724 million) | Public listing on NSE/BSE |
Nykaa raised more than $145 million from around 15 institutional investors before its IPO, according to Inc42, and its 2021 listing valued the company at $7.4 billion.
Revenue Growth and Recent Challenges
| Fiscal Year | Revenue | Net Profit |
| FY23 | ₹5,144 crore | ₹21 crore |
| FY24 | ₹6,386 crore | ₹40 crore |
| FY25 | Nearly ₹8,000 crore | Not publicly disclosed here |
Nykaa’s stock fell more than 60 percent from its post-IPO peak amid lock-up expiries and controversy over a 2022 bonus share issue, which critics said complicated exits for early investors. Despite this, the business kept compounding: gross margins reached 49 percent in FY25 and revenue grew 24 percent year-on-year, reflecting a strategy of reinvesting profits into stores, owned brands, and quick commerce.
Public Recognition
Nykaa became India’s first unicorn led by a woman in 2020, and Nayar became India’s wealthiest self-made female billionaire following the 2021 listing. She has featured on Forbes’ Asia’s Power Businesswomen list.
Nykaa vs Competitors
| Brand | Founded | Positioning |
| Nykaa | 2012 | Omnichannel beauty, fashion, and wellness leader with owned brands |
| Purplle | 2011 | Online beauty marketplace, budget and mass-market focus |
| Amazon/Flipkart (BPC) | Not applicable | Broad e-commerce giants entering beauty as a category |
Nykaa led India’s online beauty and personal care market with an 18.5 percent revenue share in FY20, well ahead of digital-native rivals, though it continues to face competition from broader e-commerce platforms.
Investor Perspective
Nayar’s nearly two-decade banking career gave her a rare advantage: deep familiarity with capital markets before she ever needed to raise money for her own company. Her strength lies in a hybrid model combining inventory-led beauty retail, a fashion marketplace, and owned brands under one platform. The risk is that Nykaa trades at a high valuation relative to its net margin, meaning continued earnings growth is essential, and its 2022 bonus share controversy raised real governance questions. If its owned-brand portfolio and physical retail expansion keep compounding, there is a credible path to sustained profitability at scale.
Founder Timeline
- Early career — B.Com at Sydenham College; MBA at IIM Ahmedabad
- Early career — Joins Kotak Securities, later Kotak Mahindra Capital
- 2012 — Leaves banking at 49 to found Nykaa
- 2014 — Opens first physical store at Delhi airport
- 2015 — Launches Nykaa Cosmetics, its first owned brand
- 2018 — Launches Nykaa Fashion
- 2020 — Nykaa becomes India’s first woman-led unicorn
- Nov 2021 — Lists on NSE and BSE at a $7.4 billion valuation
- 2022 — Faces controversy over a bonus share issue
- FY25 — Revenue grows 24% to nearly ₹8,000 crore
Key Takeaways
- Starting a consumer internet company at 49 shows founder age matters less than conviction and capital discipline.
- Prioritizing product accuracy over volume in Nykaa’s earliest days built long-term customer trust.
- A hybrid inventory-led and marketplace model, combined with owned brands, created margin resilience pure marketplaces often lack.
- Governance decisions, like the 2022 bonus share issue, can weigh on investor trust long after the business recovers.
FAQs
Who founded Nykaa?
Falguni Nayar, in April 2012.
How much funding did Nykaa raise before its IPO?
More than $145 million from around 15 investors.
How much did Nykaa raise in its IPO?
₹5,352 crore ($724 million) at a $7.4 billion valuation.
Is Nykaa profitable?
Yes, since FY21, though margins remain thin relative to its valuation.
Where did Nayar study?
Sydenham College and IIM Ahmedabad.
What did Nayar do before Nykaa?
Nearly 20 years in investment banking at Kotak Mahindra Capital.
What makes Nykaa different?
Its hybrid model combining inventory-led retail, a fashion marketplace, and owned brands.
Sources
- Wikipedia — Nykaa company history: https://en.wikipedia.org/wiki/Nykaa
- Forbes — Falguni Nayar profile: https://www.forbes.com/profile/falguni-nayar/
- Inc42 — Nykaa IPO Analysis 2021: https://inc42.com/datalab/nykaa-ipo-analysis-growth-opportunities-risks-more-report-2021/amp/
- Inc42 — Nykaa Series E funding: https://inc42.com/buzz/nykaa-raises-14-mn-in-series-e-funding-round-led-by-tpg-growth/
- BeautyMatter — Nykaa’s $722 million IPO: https://beautymatter.com/articles/indias-nykaa-raises-heavily-oversubscribed-722-million-ipo
- Entrepreneur India — FY25 Nykaa results: https://www.entrepreneur.com/en-in/news-and-trends/fy25-has-been-a-strong-year-for-nykaa-falguni-nayar/496352
- StartupTalky — Nykaa Success Story: https://startuptalky.com/nykaa-success-story/
- Grokipedia — Nykaa company profile: https://grokipedia.com/page/Nykaa
© The Founder Nation | All rights reserved | Written by TFN Research Desk
