Nykaa Fashion, a subsidiary of FSN E-Commerce Ventures, announced that its CEO, Nihir Parikh, had decided to step down from his position due to personal commitments. The company stated in a regulatory filing with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) that his resignation would come into effect at the close of business hours on December 5, 2024.
In its official statement, the company expressed its gratitude for Parikh’s contributions during his tenure. It acknowledged his long-standing association with the organization and highlighted the significant value he added to its growth and operations over the years. The company further emphasized that his dedication and efforts had left a lasting impact on the business.
Nykaa Fashion CEO Nihir Parikh Resigns
FSN E-Commerce Ventures, the company behind popular beauty and fashion brand Nykaa, announced that Nihir Parikh, the CEO of Nykaa Fashion, has resigned from his position. The announcement was made on December 5, 2024, and his resignation became effective immediately.
The company explained in an official statement that Nihir Parikh decided to step down due to personal reasons. It stated, “Nihir Parikh has resigned as of December 5, 2024, and he has been relieved from his duties at the end of business hours on the same day.”
Nykaa Fashion is the fashion-focused division of FSN E-Commerce Ventures Ltd, a well-known name in the beauty and fashion retail space. This resignation marks a significant leadership change in one of the company’s key business areas.
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Nykaa Q2 Results Highlights
Nykaa’s Q2 results showcase robust growth in revenue and profitability, driven by its thriving beauty segment and innovative quick commerce initiatives. Here’s a breakdown of the key highlights:
Revenue and Profit Growth
Nykaa’s revenue from operations saw a 24% year-on-year growth, reaching ₹1,875 crore in the September quarter, fueled by a strong performance in its beauty segment and modest recovery in fashion. The company’s net profit also surged 72%, hitting ₹10 crore during this period.
Beauty Segment Performance
The beauty marketplace experienced a 29% increase in Gross Merchandise Value (GMV), totaling ₹2,783 crore. This growth was driven by the popularity of in-house brands like Dot & Key and Kay Beauty, as well as increased sales from its offline stores.
Fashion Segment Update
While the fashion vertical remains a smaller contributor, accounting for less than 10% of Nykaa’s overall revenue, it reported stronger revenue growth compared to GMV. This improvement was supported by marketing income from Little Black Book (LBB) and higher service-related revenue. However, the fashion segment continues to operate at a loss.
Quick Commerce with Nykaa Now
This year, Nykaa introduced Nykaa Now, a quick commerce initiative promising four-hour delivery for essential beauty products. In the latest quarter, 70% of orders in the top 110 cities were delivered within one day, with the figure rising to 80% in the top 12 cities.
The quick delivery service focuses on high-demand, everyday beauty essentials, offering delivery times as short as 30 minutes to three hours in select metropolitan areas.
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FAQs
Q.1. Why did Nihir Parikh resign as CEO of Nykaa Fashion?
Ans. Nihir Parikh resigned due to personal commitments, with his resignation effective from December 5, 2024.
Q.2. What were Nykaa’s Q2 revenue and profit figures?
Ans. Nykaa’s revenue for Q2 was ₹1,875 crore, reflecting a 24% year-on-year growth, while net profit rose 72% to ₹10 crore.
Q.3. How did Nykaa’s beauty segment perform in Q2?
Ans. The beauty marketplace saw a 29% increase in GMV, totaling ₹2,783 crore, driven by in-house brands and growth in offline store sales.
Q.4. What is Nykaa Now and how does it work?
Ans. Nykaa Now is a quick commerce service that delivers beauty essentials within 30 minutes to three hours in select cities, focusing on high-demand products.
Q.5. What challenges is Nykaa Fashion facing?
Ans. Despite growth in revenue, Nykaa Fashion remains a loss-making vertical, contributing less than 10% to the company’s overall revenue.
