SN E-Commerce Ventures Limited, the parent company of Nykaa, a prominent ecommerce platform, has projected a year-on-year revenue growth of approximately 22-23% for the first quarter of FY2025. The company operates in two main segments: Beauty and Fashion. It anticipates that the gross merchandise value (GMV) for the quarter will show mid-twenties growth compared to the previous year. GMV is a crucial metric for ecommerce platforms, representing the total sales value over a specific period.
Starting this quarter, the company will begin reporting segment-wise results, separately highlighting its Beauty and Fashion segments. The Beauty segment, which includes the Nykaa beauty platform, owned beauty brands, physical stores, eB2B distribution business ‘Superstore by Nykaa’, and Nykaa Man BPC business, expects a revenue growth of around 22-23%. The Beauty vertical’s GMV growth is forecasted to be higher, in the high 20s year-on-year, reflecting the sector’s robust long-term growth.
Despite challenges like slower growth in physical retail due to factors such as elections and heatwaves in North India, the company remains optimistic about its Beauty segment’s performance. Conversely, Nykaa noted that the Fashion industry in India continues to face hurdles, with limited demand this seasonally weak quarter due to fewer weddings and festivities. Nevertheless, the Fashion vertical is expected to achieve healthy revenue growth of approximately 20% year-on-year, although GMV growth is anticipated to be in the mid-teens year-on-year.
The Fashion segment comprises the Nykaa Fashion platform and owned fashion brands.
