On November 10, 2021, a milestone moment in India’s e-commerce and beauty retail sector took place when Nykaa, the beauty giant founded by Falguni Nayar, made a blockbuster debut on the stock exchange. Natasha Aggarwal, a small-time retail investor, was among those celebrating. At 11 AM, she opened a bottle of bubbly, toasting to her monetary gains as Nykaa’s stock soared 89% to Rs 2,129 on its first day of trading. Having purchased shares at the IPO price of Rs 1,125, Aggarwal, like many others, saw her investment skyrocket. The occasion also marked the recognition of Nayar, whose vision and leadership propelled Nykaa to its impressive valuation of nearly $13 billion, making her the wealthiest self-made woman entrepreneur in India.

From the beginning, Nayar’s strategic decisions helped Nykaa capitalize on a rapidly growing market. India’s beauty and personal care sector, valued at $16 billion, was primed for digital disruption. With the rise in disposable income, social media influence, and changing lifestyles, the online beauty market was expanding. Nayar’s decision to operate an inventory-led model and steer clear of heavy discounting helped Nykaa build trust and credibility with consumers. The brand quickly found its niche by offering products free from counterfeit concerns—an issue that had plagued the Indian beauty industry for years. Early investors, including Rishabh Mariwala of Sharrp Ventures, recognized Nayar’s determination and backed her vision, enabling Nykaa’s growth. As a result, the company soon became a household name, attracting celebrity investors like Katrina Kaif and Alia Bhatt.

Falguni Nayar’s path to entrepreneurial success is an inspiring one. At 50, she made the bold decision to resign from her high-powered role as MD of Kotak Mahindra Capital, after 18 years in investment banking. Rather than taking a break, she dove straight into founding Nykaa, with a team of just three employees and a vision for transforming India’s fragmented beauty and cosmetics market. Nayar was determined to create an online beauty marketplace that leveraged technology and offered a curated range of high-quality products, setting Nykaa apart from traditional mom-and-pop stores. By October 2012, Nykaa’s website went live, marking the beginning of a venture that would go on to reshape beauty retail in India.

One of the keys to Nykaa’s success lies in Nayar’s approach to integrating technology with retail. The company adopted an omnichannel model, combining the convenience of online shopping with a network of physical stores. Today, Nykaa operates 84 stores across more than 40 cities in India and plans to expand further. Nayar is particularly bullish on the growth potential in Tier II and III cities, which account for 60% of Nykaa’s demand. As Nykaa’s physical presence increases, the company has also embraced digital tools that allow seamless integration between its online and offline platforms, providing a personalized shopping experience for customers. This combination of technology and physical retail makes Nykaa stand out from its competitors.

In addition to its beauty and wellness offerings, Nykaa has successfully ventured into fashion retail, launching Nykaa Fashion in 2018. With nearly 1,500 brands and a curated marketplace model, Nykaa Fashion quickly gained traction, growing its gross merchandise value by 353% in the first half of FY22. The company also acquired a majority stake in Dot & Key, signaling its interest in expanding its direct-to-consumer presence. With plans to enter international markets, including Mauritius, Dubai, and London, Nykaa’s growth trajectory is strong. Despite some concerns from equity analysts about the company’s valuation and profitability, Nayar remains confident, asserting that Nykaa’s growth is fueled by its customer-centric approach and long-term vision.

As Nykaa continues to expand and evolve, Falguni Nayar’s leadership remains at the heart of its success. Her ability to blend entrepreneurial vision with a deep understanding of the market has set the stage for Nykaa to become a global beauty and lifestyle powerhouse. For investors like Natasha Aggarwal, Nayar’s story is one of inspiration, proving that with determination and a clear vision, it is possible to redefine an entire industry. As the company moves forward, Nayar’s focus on sustainable growth, a strong governance framework, and respect for shareholders ensures that Nykaa’s success is built to last. For many, this marks just the beginning of a promising journey, one that will likely continue to pop champagne corks in years to come.