- FSN E-Commerce Ventures aims for $5 billion GMV by FY30, doubling current scale
- Beauty GMV to grow 2.5-3 times and fashion GMV 3-3.5 times by FY30
- Offline retail share to rise from 17% to 30% with expanded city and pin code reach
FSN E-Commerce Ventures Ltd., the parent of Nykaa, has laid out an ambitious five-year growth roadmap, targeting more than a doubling of its business scale by FY30, driven by expansion across beauty, fashion, offline retail and private labels. At its investor day, the company said it aims to become a $5 billion-plus gross merchandise value (GMV) platform by FY30, representing roughly 2.5-3 times its current scale.
Growth is expected to be led by both its core beauty business and its fashion vertical, with beauty GMV projected to grow 2.5-3 times and fashion GMV expected to expand 3-3.5 times over the period.
Nykaa is also targeting revenue growth of 2.5x-3x by FY30 while aiming for EBITDA to increase 4x-5x. The company expects EBITDA margins to reach the early-to-mid teens over the next five years.
Management Expectations
A significant part of the growth strategy revolves around expanding product offerings and strengthening brand partnerships. Nykaa said it aims to host more than 1,000 global brands on its platform by FY30. Its private-label portfolio, housed under the "House of Nykaa" umbrella, is expected to compound at around 30% annually and reach Rs 5,000 crore in scale.
While online currently contributes 83% of GMV and offline accounts for 17%, Nykaa expects the offline share to increase to 30% by FY30. The retailer plans to expand its reach from 12,500 pin codes currently to 19,000 and increase its city footprint from 1,250 cities to 3,500 cities.
Tier-3 and beyond markets currently contribute 68% of GMV and are expected to account for 75% by FY30, while the contribution from Tier-1 and Tier-2 cities is projected to moderate.
Nykaa Fashion is targeting a 3-3.5 times increase in net sales value by FY30, with key brands accounting for 65-70% of the segment's business. The company expects the fashion business to achieve high single-digit EBITDA margins, with a longer-term target of over 10%.
Meanwhile, Nykaa's B2B platform, Superstore, is expected to achieve EBITDA breakeven by FY30 while targeting GMV of more than Rs 3,500 crore and EBITDA margins of 3-5% at scale. The company also expects operating free cash flow conversion to improve significantly, targeting more than 40% by FY30 compared with 21% in FY26.
ALSO READ: Nykaa Partners With OpenAI To Build AI-Native Beauty And Fashion Commerce
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.