Fashion and beauty marketplace Nykaa said it expects the new fashion category to top sales of Rs 500 crore in FY 21. Under its multi-brand e-commerce label Nykaa Fashion, the brand has now forayed in the intimate wear category with its brand Nykd, ahead of the festive season.
“The intimate wear category has been neglected for long. For the past two years, we have researched and identified the need to create a brand that provides products for different body types,” Nykaa Fashion chief executive Adwaita Nayar said.
She said the company has forecasted that the new fashion category will become a Rs 500-crore business at the retail price level in FY21. “We expect Nykaa Fashion to grow 5X this year compared to last year,” Nayar said. She said the average order value has gone up by 30-40% since January 2020, and that the brand is growing at 200% of its February pre-lockdown sales, with consumers continuing to shop even amid the pandemic.
Fashion and beauty brands said they expect strong revival this festive season, which is peak season for both businesses, fuelled by pent up demand and lockdown curbs having eased across cities.
Last week, Nykaa announced that it will offer over 560 brands across men’s fashion and grooming categories, across brands including Louis Phillipe, Raymond, Adidas and Hidesign.
Introduced in 2012, the omni-channel fashion and beauty retailer has a portfolio of over three lakh products and partnerships with more than 1,500 brands. About three years back, Nykaa forayed in the fashion segment.
In April this year, Nykaa raised fresh funding of Rs 100 crore ($13 million) from existing backer Steadview Capital, with the investment taking Nykaa’s total fund tally to over $100 million. The investment valued the beauty and fashion retailer at an estimated $1.2 billion. The company, which turned profitable in FY19, had previously raised funds of Rs 100 crore from Singapore-based TPG Growth, valuing it $724 million.