When Falguni Nayar founded Nykaa in 2012, many questioned whether the company could take on e-commerce giant Amazon. However, Nayar believes that Nykaa’s competitive advantage lies in its inventory-based model and brand-sponsored sales, which has helped Nykaa become a leading name in the Indian beauty industry.

In 12 years, Nykaa has not only reshaped the market but also built a loyal customer base thanks to its diverse product portfolio, reliable quality, fast delivery times and seamless customer experience. The platform now has 6,800 brands, including over 170 beauty brands and over 260 fashion brands in Q2FY25 alone.

The latest financial report shows that Nykaa's profit after tax (PAT) in Q2FY25 increased by 66% to ₹13 crore over the same period last year. The company's revenue also grew by 24%, from ₹1,507 crore to ₹1,875 crore. After turning profitable in FY21, Nykaa has maintained this momentum, landing Falguni Nayar in the 89th position on the Forbes India Rich List 2024 with a net worth of $3.64 billion.

However, Nykaa now faces stiff competition from strong rivals such as Flipkart’s Myntra, Tata Cliq and Reliance’s Tira. In addition, the rise of fast-commerce platforms has also made the beauty market more competitive than ever.

The question is whether Nykaa can continue to disrupt and maintain its leadership position? With a solid foundation and constant innovation, Nykaa is likely to continue to grow, but the road ahead is still challenging.