Fsn E-commerce Ventures Ltd. · NSE:NYKAA
Fsn E-commerce Ventures — Investor Day (June 2023)
148 slides from Fsn E-commerce Ventures's investor day presentation, Jun 16, 2023
Slide 1: Exchange filing cover letter: Investor Presentation
FSN E-Commerce Ventures Limited (formerly ‘FSN E-Commerce Ventures Private Limited’) June 16, 2023 National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, Corporate Relationship Department, Plot No. C/1, G Block, 2nd Floor, New Trading Wing, Bandra – Kurla Complex, Rotunda Bu
Slide 2: Annual Investor Day
Annual Investor Day 16th June 2023 FSN E-Commerce Ventures Limited
Slide 3: Disclaimer
Disclaimer By attending the presentation or by reading the presentation slides you agree to be bound as follows: This Presentation is prepared by FSN E-Commerce Ventures Limited (“Company”) and is for information purposes only without regards to specific objectives, financial situations or needs of
Slide 4: Slide 4
Slide 5: Shaping the Digital Landscape: The Surge of India's Internet Economy
Shaping the Digital Landscape: The Surge of India's Internet Economy India’s Internet economy rapid growth Ecommerce size in India (USD Bn) 5-6x Internet economy’s share of GDP Ecommerce (B2B & B2C) 2010 $8-10B $50-60B 0.5% will account for 50% of Internet economy 350-380 2022 $155-175B $320-350B 4-
Slide 6: E-commerce to account for largest share of internet economy
E-commerce to account for largest share of internet economy Market Size (USD Bn) 2022 2030 BPC Online USD 3 Bn (expected to grow at a CAGR of 29%) Fashion Online USD 15 Bn (expected to grow at a CAGR of 27%) 350 - 380 175 - 210 105 - 120 65 - 75 55 - 60 60 - 65 40 - 50 35 - 40 20 - 25 20 - 25 17 - 2
Slide 7: Discretionary Spends: To witness strong growth given demographic and economic shifts
Discretionary Spends: To witness strong growth given demographic and economic shifts India’s fast-growing GDP per capita Consumption differences across tiers 15% CAGR $5500 $2,400 $1,200 Tier 1 Annual Tier 2+ Annual consumption consumption $2500 $2000 54% 36% discretionary discretionary 2020 2022 20
Slide 8: BPC: India Per Capita spend is under-indexed; large headroom for growth
BPC: India Per Capita spend is under-indexed; large headroom for growth India’s position on the S curve by 2030; GDP per capita $5,500; BPC per capita: $45-50 BPC Per Capita India: Nykaa BPC is $15 $50 currently at $80 GDP Per Capita India: $2500 $5500 2022 to 2030 *per customer Evidence from other
Slide 9: Fashion: India Per Capita spend is under-indexed; large headroom for growth
Fashion: India Per Capita spend is under-indexed; large headroom for growth 1200 United States Germany Denmark 1000 Canada India’s position on the curve by 2030; Fashion Per Capita (USD) United Arab Emirates GDP per capita $5,500; Fashion per capita: Australia Sweden Fashion Per Capita 800 Portugal
Slide 10: 29 Mn Households in High Income By 2030
29 MN Households in High Income By 2030, 1 in 2 Households with High Purchasing Power Households This translates to: 293M 339M 386M High Income > $10k 8M 18M 29M per capita (> INR 32 L) (3%) (5%) (7%) income Upper-Mid ~$5-7.5k 61M (21%) 115M (34%) 168M (44%) per capita (INR 8L-32 L) income Lower-Mid
Slide 11: Per Capita BPC Consumption will be a mix of varying income groups
Per Capita BPC Consumption will be a mix of varying income groups India High income BPC Per Capita India Upper India: India Lower mid income >$150 $15 $50 mid income GDP Per Capita India: $2500 $5500 $12 2022 to 2030 $50 Nykaa target customer base With currently 18 Mn High Income & 115 Mn Upper-Mid
Slide 12: Per Capita Fashion Consumption will be a mix of varying income groups
Per Capita Fashion Consumption will be a mix of varying income groups 1200 United States Germany Denmark 1000 Canada India High Fashion Per Capita (USD) United Arab Emirates income Australia Sweden Fashion Per Capita 800 Portugal India: Qatar India Upper Kuwait $54 $160 600 mid income Spain India Lo
Slide 13: Ecommerce habits and category composition shift as incomes rise
Ecommerce habits and category composition shift as incomes rise Share of ecommerce in retail spend Value share of ecommerce by category 45% India overall at 19% Growth-mature stage 37% 30% 27% Growth stage 19% Early stage 14% 5-10% 9-10% <2% China USA Low-income Middle-income High-income India BPC A
Slide 14: BPC & Fashion: To witness strong growth given demographic and economic shifts
BPC & Fashion: To witness strong growth given demographic and economic shifts Share of e-com transactions by age group BPC & Fashion per capita in India 37% Nykaa 31% $130 24% Fashion India $54 8% Nykaa $80 <1% BPC 18-24 25-34 35-44 45-54 55-64 Gen Z GenZ - Millenial Millenial Gen X Baby Boomer Indi
Slide 15: Nykaa - India's preferred lifestyle retailer
Nykaa - India’s preferred lifestyle retailer 51,438Mn*** 103Mn** 125Mn*** 24Mn** INR Revenue App installs Monthly Visits Customer base 6200+** 154** 42 Mn*** 15Mn** Brands Retail Stores Orders Social Followers We are one of India’s leading Beauty and Fashion Omnichannel player 2012* 2018* 2019* 2021
Slide 16: The Nykaa Journey Over the Years
The Nykaa Journey Over the Years Developed pin- code based personalization during COVID Launched owned brand Launched Launched Nyveda, a Explore, The Ordinary potent in-app ranks #1 in Ayurveda Initiation of Entered into content skin care brand partnership agreement aggregation for Cannes x with Kat
Slide 17: FY20-FY23: Robust growth in GMV and Revenue
FY20-FY23: Robust growth in GMV and Revenue % FY20 – 23 CAGR GMV (Rs Mn) Revenue (Rs Mn) 54% 97,433 43% 51,438 69,332 37,739 40,460 24,409 26,849 17,675 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023
Slide 18: Improvements in vertical level unit economics reflecting in consolidated margin structures
Improvements in vertical level unit economics reflecting in consolidated margin structures % as % of revenue % FY20 – 23 CAGR Gross Profit (Rs Mn) EBITDA (Rs Mn) 44% 22,781 45% 16,439 2,560 9,483 1,633 1,567 7,581 838 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 42.9% 38.9% 43.6% 44.3% 4.
Slide 19: GMV growth momentum across our verticals
GMV growth momentum across our verticals All Values in Rs million Consolidated GMV 54% 97,433 39% 66,491 BPC GMV 69,332 50,089 40,460 33,542 24,899 26,849 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 140% 299% Others(1) GMV Fashion GMV 25,696 17,516 5,245 6,530 1,727 1,868 389 83 FY2020 F
Slide 20: Margin improvement across verticals
Margin improvement across verticals % as % of NSV BPC Fashion Others 37% 148% Gross Profit 18,907 305% 3,289 (Rs Mn) 13,727 2,555 584 8,489 7,365 959 157 216 36 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 46.9% 40.4% 44.5% 46.4% 33.0% 41.5% 44.6% 44.2% 27.3% 2
Slide 21: Diversification to address larger TAM in India
Diversification to address larger TAM in India Consolidated GMV FY2019 FY2020 FY2021 FY2022 FY2023 5.4% 2.6% 1.0% 26.4% 7.0% 25.3% 16.1% 1.7% 68.2% 72.1% 92.7% 82.9% 98.3% Rs. 16,501 Mn Rs. 26,849 Mn Rs. 40,460 Mn Rs. 69,332 Mn Rs. 97.433 Mn 63% YoY Growth 51% YoY Growth 71% YoY Growth 41% YoY Growt
Slide 22: Technology Investor Day
Technology Investor Day FY23
Slide 23: Who We Are
Who We Are We are the Technology team powering Nykaa’s Omnichannel experiences Our vibrant mission is to create transformative and awe- inspiring omnichannel experiences that not only elevate lives but also leave a lasting impact for our valued customers and partners 22
Slide 24: Who We Build For
Who We Build For Customers Partner Brands Provide delightful, trustworthy Drive outcomes for brands, experiences at every customer advertisers & sellers through easy touchpoint to use systems 23
Slide 25: Our Operating Tenets
Our Operating Tenets Deep Customer Robust and Trust Massive Scale and Unlock Speed for Be Technically Immersion Worthy Products Leverage Customers Fearless Deeply understand Zero compromise Build solutions that can Rigorously fix Embrace relevant customer problems, approach on Quality, be leveraged
Slide 26: Customer Immersion: Elevate with Tech Personalization
Customer Immersion Elevate with Tech Personalization
Slide 27: Product & Brand Recommendations that Delight & Convert
Product & Brand Recommendations that Delight & Convert Billions of customer Intelligent Customer Relevant, Timely Interactions Segments Recommendations Views Makeup Products Affinity Clicks Discount Searches Seeker Nykaa Loyalist Purchases Skin Concerns 26
Slide 28: Best In Class Products For Our Partners: Ad Platform
Best In Class Products For Our Partners Ad Platform
Slide 29: Advertising Opportunities Across the Shopping Journey
Advertising Opportunities Across the Shopping Journey Awareness Display Ads Home & Category Pages Consideration Sponsored Products Search & Product Listings Coming Soon Intent Purchase 28
Slide 30: Comprehensive, High Scale Ad Capabilities
Comprehensive, High Scale Ad Capabilities Automated Ad ML-Driven Ad Fast, Actionable Flexible Pricing Setup & Selection Data Reporting Options Management Select ads, set budgets & take Algorithmic ranking to deliver D+1 ad performance reporting to CPM (impressions) ads live on platform in near-real-
Slide 31: Massive Scale & Leverage: Cross Border B2B2C Solution
Massive Scale & Leverage Cross Border B2B2C Solution
Slide 32: B2B2C: Unlocking Speed Through Common Capabilities
B2B2C: Unlocking Speed Through Common Capabilities Mumbai L.A. Nykaa Warehouse Mumbai B2B2C PLATFORM Final Landed Price Delivery at Easy Returns & Full Assortment Savings on Doorstep Full Refunds Access Customs No inventory Risk 31
Slide 33: Unlock Speed for Customers: Github Co-Pilot
Unlock Speed for Customers Github Co-Pilot
Slide 34: Unlock Speed: GitHub Copilot (Demo)
Unlock Speed: GiTHub Copilot (Demo)
Slide 35: Technically Fearless: Nykaa Tech Labs
Technically Fearless Nykaa Tech Labs
Slide 36: Unleash Innovation: Nykaa Tech Labs
Unleash Innovation: Nykaa Tech Labs 35
Slide 37: Nykd by Nykaa
Slide 38: Our Journey
01. Our Journey
Slide 39: Nykd: A National Brand
Nykd: A National Brand CAGR: 250% 85 Highlights • 85 Cr in year 2 of operations 32 • EBITDA positive at an SBU level in March’23 4 FY21 FY22 FY23 6 months only MRP sales in INR Cr
Slide 40: Key highlights in 2.5 years of launch
Key highlights in 2.5 years of launch #1 ~1Mn Unique ~5% In innerwear category On Nykaa platforms customers 80% share of Discounting Customer sales of Bras Touchpoints Nykaa Platforms All major marketplaces Top 3 ~20% D2C website 4 EBOs Brand On Repeat rate ~1000 MBOs Amazon across Bras
Slide 41: Why did we launch Nykd?
02. Why did we launch Nykd? SESS SS
Slide 42: Our Learnings from Nykaa Beauty & what next?
Our Learnings from Nykaa Beauty & what next? Lingerie Beauty Underdeveloped market Nykaa Beauty taught us how to navigate an underdeveloped Complex category & product market; Educated and supported women in Lack of education & awareness their journey of beauty Brand stickiness
Slide 43: Women's Innerwear Market: Sizing the Opportunity
Women’s Innerwear Market: Sizing the Opportunity CAGR: 16% $9.2 Bn Large & growing market ~40% $3.7 Bn Highly unorganized $4.4 Bn ~30% $3.1 Bn ~60% Growth Increasing per- $5.5 Bn Drivers ~70% capita consumption $3.1 Bn Premiumization across the category FY22 FY27P Unorganized Organized Source: Page
Slide 44: Understanding the complexity of product
Understanding the complexity of product
Slide 45: Simplify lingerie for Indian women
Slide 46: Nykd's Foundation Pillars
Nykd’s Foundation Pillars 1 2 3 4 House of Nykaa; High quality Product; Deeply entrenched in Conversation & consumer truth; education; Establishes Real value for money Enabling women to consumer connect Simplifying lingerie understand their bodies
Slide 47: Arriving at the Nykaa of NYKD
• Age group : 24-35 yrs old. Millennial consumer • Who is she : Real woman, in each one of us, all of us Arriving at …. • Always herself, living each moment fully • Experiencing highs and The Nykaa of NYKD lows…changing….evolving… • Always keeping it real. Naked. • She writes her own destiny • Our B
Slide 48: Bringing our positioning alive
Bringing our positioning alive.. You will still have good days and bad days, but we are here to support you in your journey. We can’t change things for you – We Can’t stop wars, Can’t stop viruses. But we can bring you comfortable bras that support you in whatever you do…ensuring your innerwear is t
Slide 49: Our Product Offering
Our Product Offering Bras Panties Athleisure Sleepwear
Slide 50: Bringing Alive the 'Product' Pillar
Bringing Alive the ‘Product’ Pillar
Slide 51: ~1Mn consumers & here is what they say
~1Mn consumers & here is what they say…
Slide 52: Bringing Alive the 'Conversation & Education' pillar
Bringing Alive the ‘Conversation & Education’ pillar Helping women understand Bra types & uses Sakshi Leeza Anupriya Kritika Sidhwani Mangaldas Kapoor Khurana
Slide 53: Conversation & Education pillar: The Nykd Truth
Bringing Alive the ‘Conversation & Education’ pillar: The Nykd Truth Building our tribe and creating a safe space Women sharing their highs and lows and open conversations on lingerie & self-love. Anshula Kapoor Rida Tharana Shweta Tripathi Seema Anand
Slide 54: First celebrity brand association in Lingerie
First celebrity brand association in Lingerie
Slide 55: Bringing Alive the 'Consumer Truth' pillar: Technology
Bringing Alive the ‘Consumer Truth’ pillar: Technology ● 80% of women wear the wrong bra size. ● Created a tech tool - a hassle-free experience with no measuring tapes, one that educates you along the way while finding your right bra size, fit, and style - all in less than three minutes. ● An import
Slide 56: Awards & Recognition
Awards & Recognition ● IRF’s Customer Service Excellence Tool of the Year’22 – Bra Advisor tool ● At IFF, Nykd by Nykaa won 3 awards: • Most Admired Multi-media Marketing Campaign of the Year - Bhumi Pednekar • Most Admired Social media Marketing Campaign of the Year - Nykd Truth • Best Fashion Inno
Slide 57: Building a Digital-first, Phygital Brand
03. Building a Digital-first, Phygital Brand
Slide 58: #1 on Nykaa platforms
#1 on Nykaa platforms FASHION < Nykd by Nykaa av & Go EXPRESS SHIPPING Nykd by Nykaa Nykd by Nykaa Support T-shirt Bra rose yb... Luxe Jacquard Minimiser Bra 8 e ee %999 e199 Extra 8% Off Extra 5% Off Nykd by Nykaa Nykd by Nykea Barelv There Bra -Nvb225- 0... Nvkd All Dav On-Trend Soorts.. Nykd by N
Slide 59: Winning on major marketplaces
Winning on major marketplaces Top 3 in India in the Bras category in <1.5 years 85% positive ratings by 10k+ customers 100% YoY growth in FY23 at ~50% lower marketing spends
Slide 60: General Trade
General Trade Existing UP, NCR and UK, Delhi, Haryana, Growth drivers markets Gujarat, Punjab, ( 1+Yrs) Karnataka • Very strong feedback from trade across markets on product quality • In established markets the New and Maharashtra, Tamilnadu, repeats are >30% Upcoming Telengana, AP, WB, markets NE a
Slide 61: MBOs
MBOs (Wd. Nykd Shop-in-Shop
Slide 62: Exclusive stores
Exclusive stores 4 stores as of March’23, more coming up…
Slide 63: Exclusive stores
BYZNYKAA tores Ives Exclus
Slide 64: Creating a Safe Zone in trial rooms
Creating a Safe Zone in trial rooms Educational & body positivity elements in trial rooms
Slide 65: Own D2C website
Own D2C website (Wed. (Wokd. (BRA AovisoR) BRAS PANTIES SLEEP & ESSENTIALS SHAPEWEAR ACCESSORIES NYKDALLDAY WE MADE TOO MUCH Q a i) BYZNYKAA Bras Made For Your Body Non Padded Wirefree Happy Curves
Slide 66: Recap
04. Recap
Slide 67: Disrupting the Lingerie Industry
Disrupting the Lingerie Industry Sharp positioning Exponential scaling Team Hyper focussed on consumer Lean team of category experts across product and supply chain Solving real problems, in simple ways - Education, all day comfort, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 sweat, freshness FY22 FY23 Building the mus
Slide 68: Full price brand being built for consumer love
Full price brand being built for consumer love rather than an opportunistic take
Slide 69: Brands across all major categories
12 brands across all major categories i.e. Makeup, Skin Care, Hair, Bath & Body, Fragrances, Men’s Grooming with unique product and price positioning
Slide 70: India's First Celebrity Beauty Brand in partnership with Nykaa
India’s First Celebrity Beauty Brand in partnership with Nykaa
Slide 71: About Kay Beauty
About Kay Beauty Glamorous. Inclusive. Premium. Kay Beauty is India’s first Celebrity Beauty Brand launched by Bollywood actor Katrina Kaif in partnership with India’s largest beauty retailer, Nykaa. Kay Beauty is created by Katrina with a vision to deliver high- performance, long-lasting, ultra-gla
Slide 72: Brand Positioning #ItsKayToBeYou
Brand Positioning #ItsKayToBeYou Kay Beauty believes in building a brand and a holistic beauty community that is inclusive – for all genders, skin tones, skin types, ages etc. The inclusivity-first approach is applicable to everything in the brand’s universe. From creating a product portfolio of lar
Slide 73: Product Positioning #MakeupThatKares
Product Positioning #MakeupThatKares As an actor, having experienced long hours of shooting, with constant touching-up of makeup, Katrina created Kay Beauty with a mission that all products were long-lasting, looked ultra-glam but at the same time cared for the skin. Thus, was born the idea of #Make
Slide 74: Brand Identity: The 'K' Monogram
Brand Identity T he ‘K’ Monogram The ‘K’ monogram iconic to the brand is enveloped on all products that gives the products a unique identity It’s a pattern built from the brand letter ‘K’ The monogram has rendered the brand’s minimal and luxurious appeal
Slide 75: Wide Product Portfolio
Wide Product Portfolio LIPS FACE EYES NAILS Glamorous long stay formulas Luxurious texture, shades for all High performing lasting formulas Shades for all days 60+ SKUs 90+ SKUs 45+ SKUs 40+ SKUs
Slide 76: Brand Positioning Summary
Brand Positioning Summary Brand Love Product Love High Performance Make-Up with #ItsKayToBeYou #MakeupThatKares
Slide 77: Brand built with highly engaged Kay Kommunity
Brand built with highly engaged Kay Kommunity The brand has built a strong Kay Kommunity of over 1000+ Creators and Influencers while always championing inclusivity and diversity through its campaigns, product and shade offerings. Kay Beauty has set a benchmark for others in leading the way with #It
Slide 78: Execution example: Latest launch, 24Hr Colored Kajals
Execution example : Latest launch, 24Hr Colored Kajals Class X Kay Beauty Collaboration Kay Beauty believes in uniqueness, boldness & self acceptance as your #Eyedentitie defines you. With this campaign we took a unique approach to drive home our messaging of #ItsKayToBeYou – We collaborated with so
Slide 79: Building offline presence with standout design
Building offline presence with standout design ~300 Offline Stores Dipped in rose gold plating, Kay Beauty retail fixtures have a premium appeal and an eye grabbing visual identity. The Kay Beauty retail experience enables consumers to learn and explore the range through the content and imagery
Slide 80: Strong Performance: GMV grew by 75% YoY in FY'23
Strong Performance: GMV grew by 75% YoY in FY’23 All Values in ₹ million 1,400 2-Year CAGR : 86% 1,279 1,200 75% 1,000 800 730 GMV 600 98% 400 369 200 - FY'21 FY'22 FY'23
Slide 81: Winning many awards
Winning many awards B R A N D A WA R D S P R O D U C T A WA R D S 2022 2022 Winner Winner Kay Beauty Kay Beauty Liquid Nail Nourish 2021 2019 Beauty Entrepreneur Of The Year Entrepreneur Of The Year Eyeliner Nail Lacquer Vogue Beauty Festival 2021 NFBA 2020 GOLD WINNER 2021 SAMMIES aim to honor 2021
Slide 82: Serving the Underserved via Technology
Serving the Underserved via Technology Investor and Analyst Day Update 81
Slide 83: Large Addressable Market of ~USD 1-2 Bn
Large Addressable Market of ~USD 1-2 Bn eB2B Penetration BPC Market Segmentation by Channel USD Bn (% of Overall B2B Retail, 2021) CAGR % 10% USD 31 Bn(1,2) China 10-15% USD 10 Bn, UK 7-10% 32% US USD 19 Bn(1,2) 4-7% USD 3Bn, 15% USD 9 Bn, Brazil 30% 1-5% USD 5 Bn, 26% India Growth Headroom for Indi
Slide 84: Current Distribution Ecosystem Suffers from Many Inefficiencies
Current Distribution Ecosystem Suffers from Many Inefficiencies Distributor Brand/ Retailer Manufacturer Stockist Sub-Stockist Wholesaler Fragmented Retailer Remains Not a level playing Distribution Underserved field Little Innovation/ Poor fill rates, poor credit Dominance of large FMCG Capital inf
Slide 85: Serving the Underserved with Focus on Tier 2+
Serving the Underserved with Focus on Tier 2+ Total Retail Market Size: USD 865 Bn* # Cities % Pop. Our Our Competitiveness Business* 8 < 7% 16% Reasonably Well-Served Tier 1 16% Semi-served; Priority Tier 2+ ~4000 ~33% 84% Market 38% Under-served; Not an Rural NA > 60% 0% immediate focus area 47% *
Slide 86: Superstore – Serving the Underserved
Superstore – Serving the Underserved Brand/ Retailer Manufacturer Focus on BPC & Focus on Underserved Wellness Retailers i.e. Beauty centre, pharmacy 1 DTC/ Challenger Brands – 1 Full Assortment Access to a large Retailer Base 2 2 Large FMCG Brands – Stock Availability ▪ Top-up Purchase & Tail SKUs
Slide 87: Our Right to Win: Leverage our B2C Expertise
Our Right to Win: Leverage our B2C Expertise to develop High Margin Beauty Business for the Retailer Consumer Penetration still Underdeveloped Higher Margin Potential for Retailers in BPC Face Cleansing 22% Packaged Food 20-25% Body Lotion 14% Home Care 10-15% Hair Conditioner 7% Beverages 10-15% Su
Slide 88: Tech-Enabled Supply Chain to Achieve Service Excellence at Best Cost
We have a built a Tech- Enabled Supply Chain to Achieve Service Excellence at Best Cost Being Close To The Drive High Levels Of Achieve Best In-class Customer fill Rates SLAs & Cost Distributed Warehouse Superior Analytics to Build hybrid logistics model Strategy focused on reduce out of stock & bui
Slide 89: We have established a Network of Warehouses
We have established a Network of 13 Warehouses Punjab Patna Tauru (Coming Soon) Lucknow Assam Ahmedabad Kolkata Cuttack Mumbai Hyderabad Nagpur Bangalore Chennai (Coming Soon) 88
Slide 90: We are leveraging Tech to Serve the Underserved
We are leveraging Tech to Serve the Underserved Estimated Delivery Date & Cart Recommendation Best Price Net Landing Price 89
Slide 91: Feet on Street with high level of Sales Rigor enabled by Tech
We have built our Feet on Street with high level of Sales Rigor enabled by Tech (Disha App) Location Based Check-in Retailer List Mapping Personalised Smart Tasks 90
Slide 92: We are Building our Business by Serving the Underserved
We are Building our Business by Serving the Underserved ~60% Sales from Non- Kirana formats such as Beauty ~84% of Sales from Tier 2+ Cities Centre, Pharmacy Tier 1 17% Kirana 41% Tier 3 Tier 2 Non-Kirana 54% 30% 59% 91
Slide 93: We have proven execution capability
We have proven execution capability # Onboarded Retailers # Brands Listed 1,51,885 190 134 38,095 FY22 FY23 FY22 FY23 # Monthly App Visits (Mn) # Orders (‘000) 0.7 729 0.3 49 92 Jan-22 Jan-23 FY22 FY23
Slide 94: We have clarity on Drivers of Profitability
We have clarity on Drivers of Profitability Lever Focus Area Best Margins Focus on Beauty and Wellness Category (12-15% Margins) As new age brands mature and build consumer demand, we will also New Age Brands benefit with better margins and exclusivity Will drive Sales Force Productivity, Customer E
Slide 95: We are ready to Build Scale
We are ready to Build Scale # Onboarded Retailers (Mn) # Brands Listed ~0.75- 0.77 350+ 190 0.15 FY23 At Scale FY23 At Scale # Monthly App Visits (Mn) # Orders (Mn) ~9-10 ~3.5- 3.8 0.7 0.73 Mar-23 At Scale FY23 At Scale 94
Slide 96: Nykaa Fashion Annual Day June '23
NIA FASHION Annual Day June ’23
Slide 97: Nykaa Fashion in the Indian Landscape
Nykaa Fashion in the Indian Landscape
Slide 98: The Indian Fashion Market – accelerated online growth at 27% CAGR
The Indian Fashion Market – accelerated online growth at 27% CAGR Nykaa Fashion is positioned well to capitalize on the disproportionate growth in the online premium + masstige segments Online Premium fast-growing Fashion Market Size Key Growth Drivers segments* CAGR % Online Premium Fashion Market
Slide 99: Fashion: India Per Capita spend is under-indexed; large headroom for growth
Fashion: India Per Capita spend is under-indexed; large headroom for growth 1200 United States Germany Denmark 1000 Canada United Arab Emirates India’s position on the S curve by 2030; Fashion Per Capita 800 GDP per capita $5,500; Fashion per capita: $160 Australia Sweden India: Portugal Qatar $54 →
Slide 100: Per Capita Fashion Consumption will be a mix of varying income groups
Per Capita Fashion Consumption will be a mix of varying income groups 1200 United States Germany Denmark 1000 Canada India High income United Arab Emirates 800 Australia Sweden Fashion Per Capita Portugal Qatar India: $54 → $160 India Upper mid $250 Kuwait Fashion Per Capita (USD) 600 income Spain I
Slide 101: Nykaa Fashion is carving out its niche in a crowded space
Nykaa Fashion is carving out its niche in a crowded space The market we entered The changes we brought in Changing the way Indian customers shop – moving Deep Discounting with focus on liquidating old away from purely discount led shopping and season merchandise focusing on New Season Merchandise La
Slide 102: The Fashion business has scaled rapidly in the last 5 years
The Fashion business has scaled rapidly in the last 5 years We’ve remained true to All Values in Rs million our positioning despite YoY Growth % 562% the rapid scale up 250% 168% 47% 16% 25,696 share of the premium online fashion market1 Fashion GMV 17,516 #2 6,530 most preferred platform 2 of 1,868
Slide 103: Our Portfolio – building and scaling 2 key parts of the business
Our Portfolio – building and scaling 2 key parts of the business Multi-brand Omni-channel Retailer House of Brands 1 2,800+ Brand Partners* 2 13 Owned Brands* Key distribution channels Label Ritu Kumar Nykaa Fashion.com Cider Alo Revolve 4 Nykaa Fashion Marks & Spencer MBOs1 Adidas Puma 4 EBOs2 AND
Slide 104: Our Journey – NykaaFashion.com
Our Journey – NykaaFashion.com
Slide 105: Brand partnerships and key business shifts have been our levers
Brand partnerships and key business shifts have been our levers Fashion GMV (Rs Mn) Brand Count (#) SKUs (Mn) Business Model Mix* Marketplace Inventory/JIT/SOR 140% 3-year CAGR 3,000 2,850 9 25,696 17% 12% 8 2,500 7.1 7 46% 17,516 2,000 6 1,553 81% 5 1,500 1,350 4.3 4 88% 83% 1,000 3 6,530 54% 415 1
Slide 106: Activating the right customer cohort for the platform
We’re focused on activating the right customer cohort for the platform TTM Customer (Mn)1 Order to visit conversion1 (%) AOV @ SP1 (Rs) 2,547 177% 2.5 3-year CAGR 1.0% 2,440 2,388 1.8 0.8% 0.6% 2,169 0.4% 0.6 0.1 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Nyk
Slide 107: Our pillars behind the scale and growth we've seen
Our pillars behind the scale and growth we’ve seen Curation Discovery Convenience Inspiration Growth of key brands popular with the Indian audience Global Store – bringing unique international brands to India (1) ~650+ (1) Brands / Retailers ~700 like Alo, Revolve, Brands including Cider, Little Mis
Slide 108: Our pillars behind the scale and growth we've seen
Our pillars behind the scale and growth we’ve seen Curation Discovery Convenience Inspiration Personalization Refund to Wallet Recommendation Engine Launching hyper personalised Enabling customers to get instant refunds Revamping recommendation widgets across recommendations to customize the to thei
Slide 109: Our pillars behind the scale and growth we've seen
Our pillars behind the scale and growth we’ve seen Curation Discovery Convenience Inspiration Watch & Buy Editor’s Picks Events and Launches Simplifying styling tips, education on latest trends and launches by constantly revamping content to commerce properties like Watch & Buy and Editor’s Picks Cu
Slide 110: Investing in tech and infrastructure to maintain momentum
Investing in tech and infrastructure to maintain momentum Enabling new marketplace capabilities to increase inventory depth and width for customers from global brands, offline retailers and other marketplace partners while improving operational efficiency Global drop-ship Omnichannel integration Inc
Slide 111: Our Journey – House of Brands
Our Journey – House of Brands
Slide 112: House of Brands – Our approach to building brands
House of Brands – Our approach to building brands 1 Address Assortment Gaps 2 Offer Diverse Value Ranges 3 Overall Profit Expansion Tap into the latest styles and Offer products at more Brands enjoy higher gross trends with ease and offer accessible as well as margins and thus owned an exclusive col
Slide 113: House of Brands – Our approach to building brands
House of Brands – Our approach to building brands Where we are 13 brands INR 3,313 Mn 12.9%* Share of consolidated Nykaa today… by Jan ‘23 vs 7 by Mar ‘22 GMV sales in FY23 Fashion GMV Our outlook on owned brands National Brands Online / D2C Brands Private Labels on Platform Becoming one of the top
Slide 114: House of Brands – The Growth of Our Portfolio
House of Brands – The Growth of Our Portfolio Brands (#) Styles ('000) GMV ( Rs Mn) Owned Brands GMV from 3P channels 12.5% 6.7% 7.8% 12.9% 14 13 25.0 3,313 50.4% 12 21.0 20.0 48.2% 10 8 7 15.0 43.1% 6 1,372 10.0 4 3 6.9 5.0 440 2 1 1.4 233 2.5 0 0.0 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022
Slide 115: House of Brands: Strengthening our presence across varied categories
House of Brands: Strengthening our presence across varied categories Over time, we have created the ecosystem to build owned brands in-house and scale them consistently Acquired one of the hottest D2C athleisure Brand Types FY20 FY21 FY22 FY23 brands in India to tap into increased demand Acquired fo
Slide 116: House of Brands: Brands with National Traction
House of Brands: Brands with National Traction Twenty Dresses – Annual GMV INR 1,500 Mn+ Nykd – Annual GMV INR 850 Mn+
Slide 117: House of Brands: Expanding across channels & creating their own identity
House of Brands: Expanding across channels & creating their own identity Nykd – 4 EBOs and 900+ General Trade Outlets Nykaa Fashion – 4 MBOs D2C Websites Average MBO store size of 2,938 sq. ft. 20Dresses, RSVP, Likha, Gajra Gang – 118 3P MBOs Average 3P MBO store size of 100 sq. ft. Average EBO stor
Slide 118: Where we are in our growth path
Where we are in our growth path
Slide 119: Nykaa's path to scale has been different for BPC and Fashion
Nykaa’s path to scale has been different for BPC and Fashion All Values in Rs million 173% YoY Growth % 237% 271% 101% 80000 54% 35% 49% 33% 70000 66,491 60000 BPC GMV 50,089 50000 40000 33,542 30000 24,899 20000 16,219 8,079 10000 797 2,958 0.3 26 236 0 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2
Slide 120: Way forward for Nykaa Fashion
Way forward for Nykaa Fashion
Slide 121: Our focus remains on value creation for all stakeholders
Our focus remains on value creation for all stakeholders in the ecosystem THINKING CUSTOMER BECOMING THE SCALING FOR FIRST PREFERRED PARTNER FOR SUSTAINABLE GROWTH BRANDS • Latest and trendiest brands • Empowering brands to tell • Invest in tech and process + assortment their stories and reach the t
Slide 122: Beauty and Personal Care, Fashion, Content, Technology, Financial review
Content and Technology and Beauty and Personal Fashion Marketing Supply Chain Financial review 121
Slide 123: Beauty & Personal Care: One of the fastest growing markets
Beauty & Personal Care: One of the fastest growing markets with changing landscape The landscape of BPC is undergoing a Premium segment growing at 2.5x of Beauty & Personal Care Market Size remarkable transformation mass CAGR % 2020-35E CAGR Online 27% CAGR 30 $ Bn 23 26 High 16% 21 8.1 19 39% 43% 5
Slide 124: Sustained growth in traffic and a large & engaged customer base
Sustained growth in traffic and a large & engaged customer base Visits (Mn) MAUV(1) (Mn) TTM (Mn) 11 % 21 % 24% 22.7 10.0 937 24% 18% 841 18.8 8.0 646 5.5 5.0 570 12.9 11.9 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 Close to 1 Bn visits on the App in ~2X monthly engaged
Slide 125: Strong growth in conversion, with sustained AOVs
Strong growth in conversion, with sustained AOVs AOV@MRP (Rs) Order conversion (%) Orders (Mn) 31 % Note: COVID Year 27% 34.8 3.7% 1947 1857 1857 26.5 1449 3.2% 17 17 3% 2.6% FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 FY 20 FY 21 FY 22 FY 23 AOVs sustaining despite larger customer Monthly Uniqu
Slide 126: Uniquely positioned to service both luxury & mass segments
Uniquely positioned to service both luxury & mass segments Luxury Wide assortment Partner of choice for ASP: 2000 ensuring something the best global & for everyone domestic brands International brands ASP: 1500-3000 Masstige brands ASP: 600 Mass brands ASP: 300 Global Store Marketing & brand Contrac
Slide 127: The Beauty customer: highly evolved shoppers in the online ecosystem
The Beauty customer: Nykaa’s customers are highly evolved shoppers in the online ecosystem Nykaa’s customers display behaviour of highly Beauty shopper funnel evolved online shoppers Visits in a year per customer Universe of internet users 700 M 50x One of the highest in the industry for an online r
Slide 128: Prive; best in class loyalty program
Prive; investing in strengthening a best in class loyalty program to ringfence our loyal customers Reward multiplier Upto 2-3x on key shopping events Free Shipping For the top 2 tier customers Exclusive Prive coupons For our loyal customers Birthday gift Loved by our Prive customers Customer Rewardi
Slide 129: Omnichannel: The only way to retail beauty in India
Omnichannel: The only way to retail beauty in India Nykaa’s multi-channel approach strengthens the its presence and allows customers to engage with the brand in different ways 1 Beauty is an experiential & sensorial category 2 30-40% of business for Premium brands comes from our Brick & mortar store
Slide 130: Widening our Reach: Seamless Omnichannel Experience
Widening our Reach: Delivering a Seamless Omnichannel Experience to our customers 67% GMV YoY growth % Store Count (#) 104 145 Rs 5,511 Mn 60 Rs 3,293 Mn Cities vs 49 last year FY2022 FY2023 8.3% Of overall BPC GMV GMV & No. of stores +170 bps yoy Same store sales growth 36% For stores opened till M
Slide 131: Educative & engaging content created to drive commerce
Educative & engaging content created to drive commerce Continuously creating High quality Our platforms content reach at a glance Creating Omnichannel experiences Content continues to be our strength Monthly Nykaa 120 Mn social reach Nykaa stream Catching on to trending live content 80 Mn Monthly re
Slide 132: Leading with Technology as our backbone across the value chain
Leading with Technology as our backbone across the value chain Easing the purchase journey Personalised shopping experience Seamless post order journey Virtual try ons Digitizing our Recommendation warehouses through widget based on paprless picking customer cohorts Launched EDD with ~90% delivered
Slide 133: Growth strategy: strengthening our value proposition for stakeholders
Growth strategy: Continuously focusing on strengthening our value proposition for our stakeholders Winning customers LOVE Be the growth engine for Brands Build sustainably Make Shopping personalised Giving brands access to the Focus on driving productivity & easy relevant consumer base in the & effi
Slide 134: Financial Performance
~ te > g WK Financial Performance
Slide 135: Strong profitable growth
Strong profitable growth CAGR % Revenue from operations (Rs Mn) Gross Profit (Rs Mn) 22,781 43% 51,438 44% 37,739 16,439 24,409 9,483 17,675 7,581 FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Gross Margin % 42.9% 38.9% 43.6% 44.3%
Slide 136: Scale efficiencies show through
Scale efficiencies show through Total Operating Cost (%) Fulfilment Cost (%) 39.2% 39.3% 38.1% 9.8% 10.5% 32.4% 8.9% 8.8% FY2020 FY2021 FY2022 FY2023 FY2020 FY2021 FY2022 FY2023 Marketing Cost (%) Employee Cost (%) 12.8% 11.4% 11.5% 9.5% 9.6% 8.5% 8.7% 6.9% FY2020 FY2021 FY2022 FY2023 FY2020 FY2021
Slide 137: Consolidated Financials – FY23
Consolidated Financials – FY23 (%) YoY Growth Revenue from operations Gross Profit EBITDA PBT (Rs Mn) (Rs Mn) (Rs Mn) (Rs Mn) 51,438 22,781 2,560 384 (36%) (39%) (57%) (-19%) Net block of fixed assets* Working Capital** (Rs Mn) Fixed Assets Turnover*(x) Working Capital turnover** (x) (Rs Mn) 4,178 1
Slide 138: Cost levers & margin drivers
Cost levers & margin drivers Contribution Profit (Rs Mn) Fulfiment Expenses Marketing Expenses 48% 12.8% 11.4% 11.5% 10,476 8.9% 6,658 9.8% 10.5% 4,979 8.8% Early flow through of 3,247 6.9% efficiencies visible with scope for more improvement as benefit of the early investment FY2020 FY2021 FY2022 F
Slide 139: Physical Stores, Warehouse and Office Space capacity
Capital Structure % YoY Growth (%) Physical Stores Warehouse Office Space Physical Stores Area (Lacs Sq. ft.) Warehouse Capacity (Lacs Sq. ft.) Capacity (Lacs Sq. ft.) 18% 59% 43% 5% 41% 79% -19% 54% 68% 1.4 14.6 1.9 1.0 8.2 1.1 0.6 0.9 0.5 5.5 5.8 0.7 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 FY20 FY
Slide 140: Strategic regionalization of our fulfilment centres
Strategic regionalization of our fulfilment centres Total Capacity of Meeting the demand with right warehouse at right location 1.5 million sq. ft* Delivering to ~98%* of the Getting closer to serviceable pincodes in India the customers Capacity Demand H1FY22 H2FY22 H1FY23 H2FY23 Key Improvements Se
Slide 141: Capital Structure
Capital Structure Capital (FY23) Rs Total Equity 13,922 0.3x 0.3x Mn Rs 18,525 Mn Total Debt Rs 4,604 Debt/Equity (FY23) Debt/Total Liabilities (FY23) Mn Total Capital IPO Fund Rs 6,046 Rs 5,713 Rs 332 Mn Mn Mn Total IPO Fund raised 95% of the IPO fund has been 5% of the IPO fund remains utilized as
Slide 142: Vertical reporting – FY23
Vertical reporting – FY23 BPC Fashion Others (%), (bps) -> YoY Growth ⮚ Fulfilment expenses NSV (Rs Mn) 40,765 7,444 2,416 improvement driven by better (32%) (30%) (327%) regionalization strategy ⮚ Marketing expenses improvement in BPC is due to optimization Gross Profit Margin (as % of NSV) 46.4% 4
Slide 143: Outlook
Outlook Growth Profitability Technology Strategic Investment Maintaining our growth Achieve better leverage Scale up our tech Investment in brand ahead of the market on our operating cost infrastructure to deliver building, and best in class customer capabilities building and partner experience
Slide 144: Thank you
Thank you
Slide 145: Annexure
Annexure 144
Slide 146: Board of Directors
Board of Directors Falguni Nayar Sanjay Nayar Anchit Nayar Adwaita Nayar Executive Chairperson and Director Non-Executive Director Executive Director Executive Director Anita Ramchandran Milind Sarwate Seshashayee Sridhara Pradeep Parameswaran Independent Director Independent Director Independent Di
Slide 147: Vertical Reporting
Vertical Reporting (All amounts in ₹ million, unless otherwise stated) FY23 FY22 Particulars BPC Fashion Others Total BPC Fashion Others Total GMV 66,491 25,696 5,245 97,433 50,089 17,516 1,727 69,332 Growth 33% 47% 204% 41% 49% 168% 344% 71% NSV 40,765 7,444 2,416 50,625 30,823 5,728 566 37,117 Gro
Slide 148: Higher Margins, a better Path to Profitability at Scale
Due to our Higher Margins, we have a better Path to Profitability at Scale 2-3% 5-7% 12-15% ~5-6% 5-6% 3-5% Current GM % Monetisation Fulfillment S&D and Other EBITDA Industry GM% (at scale) (data + advertising) Cost Overheads Potential Revenue (at scale) Source: Industry Reports 147