Story of Nykaa’s Nayika: How Falguni Nayar Built a $13 Billion Startup in India

In today’s video, we cover the story of Nykaa’s nayika - how Falguni Nayar built a profitable $13 billion startup in India.
00:00 Introduction
00:52 A rewarding experience at Kotak and learnings from Uday Kotak
03:13 An itch to start up before 50
04:36 Birth of Nykaa
05:58 Building from scratch and early challenges
08:00 3 C’s of Nykaa - Curation, Content and Convenience
10:26 From sustainable growth to IPO
A rewarding experience at Kotak and learnings from Uday Kotak: When Falguni Nayar joined Kotak Mahindra - it was just an NBFC. She was responsible for setting up their investment banking arm - Kotak Mahindra Capital. However, when Falguni decided to follow her husband to London, Uday Kotak didn’t want to lose one of his best employees - so he asked her to set up Kotak Mahindra’s London office from scratch and when her husband moved to New York, she followed him to the US and also established Kotak Mahindra’s New York office as well. This experience gave her an experience for a lifetime.
An itch to start up before 50: While working at Kotak, Falguni had the opportunity to work with entrepreneurs like Ronnie Screwvala - who went on to build a media and entertainment empire when the sector was in its nascent stages, which Falguni helped him take public in 2005. She also helped take PVR Cinema to IPO - a company built by Ajay Bijli, which was responsible for building India’s first multiplex cinemas. These experiences had a profound impact on her and she decided that she wanted to plunge into the world of entrepreneurship before she was 50.
Birth of Nykaa: After toying with a couple of business ideas, Falguni ended up starting in India’s beauty market which was ripe for disruption. For a large majority of India’s female population, that’s kajal and lipstick was all there was when it came to beauty, and a major reason for this was the lack of education around these products. She had a hunch that if she could somehow introduce these women to this new world of beauty, if she could educate them on these products and how to use them, then her idea would be successful. And so, in April of 2012, Nykaa was born.
Building from scratch and early challenges: When she started building Nykaa - things didn’t go easy for her. In the first three years of building Nykaa, she had lost three CTOs consecutively. On the operations side, the company was struggling to fulfil 10 orders per day, and getting them delivered on time was a pipe dream. Angry customers were calling at all hours, demanding an explanation for why their products hadn’t shown up yet. Needless to say, things were stressful at Nykaa, and the startup’s team of 7 quickly became a team of two. Falguni and her daughter would stay up until 3 AM some nights, packing boxes in between customer support calls - but these nights were important. Falguni and her daughter spent time in the trenches, they suffered, they lost sleep building the company, and so as it slowly grew.
3 C’s of Nykaa - Curation, Content and Convenience: She was able to use these challenging experiences to shape the startup’s guiding principles, the three Cs of Nykaa: Curation, Content, and Convenience. Curation came in the form of partnerships: Falguni approached as many brands as she could, offering to sell their products in India, and this is how Nykaa became a one-stop shop for cosmetics. Coming to the next C, Content, well this is the education aspect of Nykaa’s business that Falguni was envisioning from Day 1. Over the years, the company created countless tutorials, blogs, and pieces of social media content to educate prospective Indian customers on beauty. And then finally, we’ve got Convenience, she did everything she could to ensure that Nykaa’s customer experience was top-notch, from exploring the platform and choosing items to buy, to checkout, to the delivery process, Falguni wanted the customer journey to be frictionless, and she wanted to make beauty products available offline, too.
From sustainable growth to IPO: These three Cs have enabled Nykaa to grow their revenues by 80X in the last six years ($4 million in FY15 to $336 million in FY21), and while they were never profitable, at least not until the financial year of 2021, their burn rate was significantly lower than most of India’s other prominent e-commerce startups. She didn’t want to sacrifice equity to grow quickly if she could grow sustainably, and so that’s what she did. She was planning the startup’s IPO as early as 2017, and as we all know today, looking back, this initial public offering was arguably the most successful in Indian history.
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#nykaa #falguninayar #backstagewithmillionaires

[@backstagewithmillionaires]

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[@OmDahake]

I loved how she preferred growing sustainably than growing at any cost this is one of the reasons that I think most startups are in a bubble because most of them are about the hype they sell not the product itself

[@StoaHQ]

Well that’s the dark side of marketing, right? Marketing can sometimes easily fool consumers. It happens to the smartest of people.

[@Fanaindel3]

absolutely

[@youreright3802]

This comment aged like fine wine 🤣🤣🤣🤣

[@StoaHQ]

What's inspirational is the age at which Falguni thought of starting her own venture inspite of having a very stable job. She is an inspiration for all the women entrepreneurs out there and even the ones who think that there is an age for everything. She proved everyone wrong. Why? Because she had the courage to do something people are usually afraid of.

[@Onesmo]

inspirational af. The mother-daughter duo for the win.

[@adityay525125]

Hats off to such a brilliant woman, she had the grit, determination and patience to power through to see her vision come to fruition back when no many people wanted women to succeed 👏

[@StoaHQ]

Exactly, Falguni is an insanely powerful inspiration to aspiring women entrepreneurs. Even if they face any obstacle during their journey because of the gender bias, they have a great role model to look upto.

[@iamayushjain]

Kudos to the BWM team on curating such a remarkable story

[@backstagewithmillionaires]

Thanks so much Ayush! Please do share this video around, we’d love to get more eyes on it 😁 -Caleb

[@korathtv810]

Can't thank her any less, she made me earn my first nearly 100% profit with the NYKAA IPO (and still growing), I didnt care about beauty products but, I will buy it from NYKAA if I had to buy at all.

[@backstagewithmillionaires]

I am glad that you got Nykaa, KorathTV. Also, a little jealous as I didn't get the IPO :D -Varun

[@faizannasimhyder9011]

@@backstagewithmillionaires No worries, the graph of NYKAA has just begun to plot. This is the benefit of new companies. We can grow as they grow.

[@nikhilaggarwal7727]

I got goosebumps several times during the video 🔥🔥🔥🔥 Thanks for bringing such a great real life story forward

[@Vivek-su7mv]

India need more people like her who can unlock the potential of the country . Thanks BWM for this.

[@vaVhf]

BWM can become what tech crunch was for the silicon valley's early days in Indian startup ecosystem.... Educating and inspiring a new generation of founders

[@StoaHQ]

The intent is amazing. Even when we at Stoa started making case study videos, our aim was to educate our audience about what went right/wrong while creating the business giants that we know of today.

[@kingKabali]

Video editing and presentation is top notch. Kudos to the team for covering such amazing story.

[@backstagewithmillionaires]

Thank you, Anubhav! Our video editing team is definitely helping us improve the quality of our videos and we are glad that you are are enjoying these improvements. :) -Varun

[@cometor_cartel]

1:10 Gujarat rocks! today itself a news came that gujarat has now become a largest manufacturing hub in India (surpassing Maharastra)🧐

[@anshgupta5325]

One of the best case study I ever seen. Great work Caleb and team

[@ShyamalKumarK]

This story is so inspiring! Kudos to Falguni

[@mukesh8903]

Hats off to this woman 🥳 What an amazing video very well structured. Kudos buddy 👏

[@bharath111able]

Really loved this video Caleb! I absolutely love the videos which are focused around a single start-up and talks about all their struggles they face enroute success. Hopefully you make a lot more of such videos. Thank you!

[@SaurabhYadav-cn6wd]

Wow, the way you tell stories, just amazing. You are a gem brother.. keep it up. Keep doing awesome things. All the best.

[@backstagewithmillionaires]

Thank you so much, Saurabh. Also, do share the video with your friends and family members - who might enjoy it. :) -Varun

[@vangujral]

It was a really crisp video, looking forward to more stories! 🤩🙏🏼

[@jusjaisinghani8179]

I can see the production quality improvement!!

[@AR-scorp]

Thank you for this awesome video. She truly is a Naika. Hats off to her. And kudos to Uday Kotak for nurturing this talent. Excellent awesome video. Now many startups will follow to upend Amazon and flipkart in this way.

[@KejriwalBhakt]

I want to see Nykaa to be a behemoth and open in European nations. Its necessary to grow in European markets as the potential is huge in that market.

[@ecfrt]

It is good to see that indian start ups are doing very good in IPOs and there doing amazing

[@backstagewithmillionaires]

Well, some of them Yashmith! I think Paytm made a lot of startups with future IPOs planned re-evaluate their valuations. -Caleb

[@SrinivasBhimani]

I never visited Nykaa website before this video.

[@abhijeetmohanta4946]

Salute to her , She is the real life nayikaa 👍

[@khizarnawaz9665]

Beautiful video. Beautiful journey, most importantly it's still on Wish to see Nykka at global arena

[@nayanchandhembram]

Amazing and inspiring ✨

[@vikramgupta7353]

Great content team, I see the Hard work you put into creating the content. Keep going.

[@ppriti9]

Hats off to her. So inspiring

[@meetmaru144]

This is really very inspirational

[@backstagewithmillionaires]

So happy to hear that Meet 🙂 Falguni is a very inspiring woman. -Caleb

[@Maulikdarji0]

Thank you man for these info

[@911chatterbox]

Love your guys contents. Keep up the good work

[@lathikaskurup2575]

I appreciate your efforts in making this content;indeed impactful.

[@sauravsilawat9940]

Amazing case studies, learn a lot.

[@abhivalunj513]

Amazing...!! thanku so much for video

[@backstagewithmillionaires]

Glad you enjoyed it Abhi! 🙂 -Caleb

[@26rohitnair]

brilliant story and brilliant storytelling

[@YuvrajKhavad]

Thank you Falguni Nayar ma'am for inspiring new generation.

[@Ronnie_Coleman]

I'm korean, It will be one of the biggest beauty market in the world. I saw korea beauty market are grow super fast. But India market are more bigger than korea. I excited Nykaa future.

[@yashrawat9409]

Another breakdown of a successfull story Hope to see more of such story based content ofcourse Startup news is the best

[@backstagewithmillionaires]

Thank you, Yash! Yeah, we have a lot more startup stories lined up for the coming weeks. -Varun

[@knighthacker2307]

Great video❤❤

[@chan90s]

Amazing content team ❤️❤️❤️❤️❤️❤️made my day

[@Ashwin.Ravichandran]

Awesomw vid ❤️

[@jawwadmobinSAJID]

Salute to both of you

[@Tushar130496]

Inspiring back story... 💯

[@backstagewithmillionaires]

Glad you enjoyed the video Tushar 🙂 -Caleb

[@arvindkumardhadde8423]

Pls come with another one as good as it is.

[@vectorlive4507]

Nykyaa of her own life Best lines on 04:30

[@bengalibhay5024]

This was an inspiring story of falguni nair

[@iitjeeadvanceandmainair-1253]

I want this type of video

[@ayya11790]

Excellent informative review. Enjoyed it as always. Thanks.

[@backstagewithmillionaires]

Thank you for your continued support, Inonimouse :) -Varun

[@the-passionate-enginner]

Bro.. Hats off to your research. 🙏

[@backstagewithmillionaires]

Glad you enjoyed the video, Shyam :) -Varun

[@triples5399]

Inspirational video Caleb 😁 Can you make a similar video on Zerodha's kamath brothers?

[@Reehan]

Please make more videos on Story behind startups ❤️ I am eagerly waiting for case studies 🔥

[@backstagewithmillionaires]

We are working on more of such startup stories, Reehan. You'll see more very soon. :) Also, do help us spread the word and share this video with your friends and family members who you think might enjoy it. -Varun

[@Reehan]

@@backstagewithmillionaires btw Great work❤️🔥

[@PratikDugar]

Really well made video. :)

[@backstagewithmillionaires]

Thank you Pratik 😌 -Caleb

[@ashwin8661]

This channel is toooooooo good...........

[@backstagewithmillionaires]

Thanks Ashwin! 😁 Please share this video around, so that more people can discover us! -Caleb

[@KejriwalBhakt]

Inventory model alone brought back Nyakka. If not for the limit on amount of products you can have in your storeroom, Nyakka wouldn't have been this successful. This was done by GOI. They banned FLipkart and Amazon to have huge amount of products in their warehouses. This was not the case for Nyakka as it is an Indian brand. For an Indian brnd their is no upper limit to the amount. Yes, another reason I believe is their loyalty and honesty with customer. My aunt few years back was hesitant to order cosmetics online but with Nyakka she often trust the product blindly. Nyakka is an inspirational story for every women out their who thinks age is a hindrance. Yes, her husband too played a pivotal role but the heroine of her story is Falguni Nayyar.

[@tintirinao]

Loved it❤️

[@backstagewithmillionaires]

Thanks Tin Tiri Nao! 😁 -Caleb

[@jockerjkr7963]

🤩 verry inspiring women

[@backstagewithmillionaires]

Absolutely Jocker 🙂 she is someone to look up to. -Caleb

[@darshanjain8458]

nice story caleb

[@backstagewithmillionaires]

Glad you enjoyed it, Darshan :) Do share it with your friends and family members who might be interested in this. Help us spread the word. -Varun

[@sandeep715pulla3]

Nice video on nykka

[@memekivines18]

A well made video guyzz, congratulation on your hard work, it just hit the right note. Focus on future video should be made by making this video as a template to build something more amazing than this. Feeling Proud.

[@bruuu2026]

🔥🔥

[@nikhilnainwani1736]

we need some women like her

[@backstagewithmillionaires]

Agreed Nikhil, India’s startup ecosystem is lacking women - hopefully in years to come that changes! -Caleb

[@travelfreakphani5933]

kekaaaaa

[@monadaily5261]

Falguni got great influence funds and experience to do a start us please share stories who started from ground level

[@GlitchyGlobe]

Exactly

[@DKSahasi]

wow

[@rajotavo]

Do u guys have a Hindi version of this episode ?

[@PhantomKThief]

We all can learn a lesson from Falguni's book.

[@backstagewithmillionaires]

Couldn't agree more, Madhur. It's definitely hard to get rid of the golden clutches - a great salary and stock options. But Falguni had a vision and she was determined to make it into a reality. And she did. :) -Varun

[@rsrik73]

It would be nice if Nykaa stopped doing their Order fraud though! If you order 2 products, and pay a 70 Rs delivery charge, they will ship out one product (and keep the delivery fee), and cancel out the second item with some excuse or the other.... and if you choose to re-order it, you will pay another delivery charge. They did this twice to me. Pretty sad that they gouge customers this way.

[@yasinazeez1383]

Can you please make a case study on ninja cart ?

[@kamboj4007]

Does Nykaa ship overseas? If anyone knows then kindly reply

[@mygallery4899]

😊👍

[@backstagewithmillionaires]

😊👍🏻 -Caleb

[@faizannasimhyder9011]

Collaborate with "Think School" someday. You both have a slight content overlap.

[@lalitpawar8554]

Make a video on how did Tesla's Rival Rivian became a 100 billion dollars company without any sale?

[@backstagewithmillionaires]

Hi Lalit, we actually focus exclusively on Indian startups here at BwM, so this topic wouldn’t really fit within our purview. But maybe Think School could cover this! -Caleb

[@lalitpawar8554]

@@backstagewithmillionaires yup 👍

[@vaibhavkumarbiradar4776]

Nayar literally mean leader though

[@Shadescoco77]

❤❤❤

[@kizelquinoa3443]

Excellent narration you white guy

[@ranadeep7462]

11:46 chk

[@AkshayKumar-kz6zh]

Both Jeff Bezoz and Falguni had successful careers but decided to start their own business. They left comfortable lifes and jobs. Also both started an e-commerce platform. Coincidence? I think not XD

[@Sammyli99]

problem is ONCE YOU DILUTE THE EQUITY (OWNERSHIP) YOU HAVE TOO MANY CHEFS AT THE TABLE WITH A VOICE AND CORE STRATEGIES GET DILUTED, (AS EVERYONE KNOWS BETTER) SO STICK TO IT, PLAN FOR BAD TIMES, AND DONT GIVE UP THE DAY JOB.

[@senrather5854]

Nykaa for Men anyone with me...

[@Fierce77551]

she wanted to create value and gave freebies to customers, paytym and cred won't get to her level

[@ankn01]

Every make up startup is worth billions

[@cg8096]

nyakka has worst customer service