Online fashion retailer Nykaa has entered into an agreement with Dubai-based Apparel group to sell its product in the Gulf Cooperation Council (GCC) region.
The two companies will set up an entity in the region–the name for which isn’t decided yet–in which Nykaa’s subsidiary FSN International Pvt. Ltd will own up to 55% stake.
With the partnership, Nykaa plans to expand its multi-brand beauty retailer business in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
The move is Nykaa’s first foray into the international market. The company sells some of its products through Noon.com in the UAE.
Apparel group operates a network of over 75 brands including Charles & Keith, Skechers, Aldo, Nine West, Aeropostale, Jamie’s Italian, Tim Hortons, Cold Stone Creamery, Inglot and Rituals, across 14 countries. It has a network of over 2,000 retail stores.
According to an exchange filing, the alliance will help Nykaa in leveraging Apparel Group’s offline retail network and market relationships to build a distinctive GCC-focused beauty offering.
"Over the last decade, we have focused on building an assortment of beauty offerings for the Indian consumer. We now look forward to recreating our beauty retail value proposition internationally, beginning with the GCC, with the Apparel Group. Through this alliance, we are confident of growing the GCC beauty market and bringing the best of both brands to a new world of consumers," said Nayar.
The digital platform is expected to go live in the next six months, Nykaa CEO Falguni Nayar said in a conference.
Nykaa has been bringing global brands to Indian consumers through its Global Store. It partnered with Canada-based skincare brand The Ordinary earlier this year. The company also offers brands such as Murad, Charlotte Tilbury and Anomaly on its platform.
Set up in 2012 by investment banker-turned-entrepreneur Nayar, its online marketplace sells products for both women and men in categories including skincare, haircare, fragrances, bath and body, and luxury products. Nykaa also has in-house brands such as Nykaa Naturals, Nykaa Cosmetics and Kay Beauty.
Nykaa, run by FSN E-Commerce Ventures Ltd, is an omnichannel lifestyle retailer with more than 4,500 brands, and a network of 112 retail stores.
Shares of Nykaa ended with cuts of 1.64% at Rs 1,285.20 apiece on Thursday before the announcement. The company has a market capitalisation of $7.4 billion.
The company has been building its set of brands through acquisitions too. Recently, it acquired Blume Ventures-backed lifestyle discovery platform Little Black Book in August. Prior to that, in April, it bought stakes in clean beauty brand Earth Rhythm, dietary supplements brand Nudge Wellness and athleisure brand Kica.
Just before its listing, the firm had acquired skincare brand Dot and Key for an undisclosed sum in October last year. In 2019, it acquired women’s styling platform 20Dresses.com. In April, Nykaa acquired jewellery retailer Pipa Bella, a brand that targets 22-35-year-old urban women.
The company had reported a revenue of Rs 1,148.4 crore, up 40.6% over last year in quarter-ended June 30, 2021. Its net profit grew 32.4% to Rs 4.5 crore in the quarter.
