Gen Z: High Conviction Story, but Priced to Perfection?

From skincare routines to fashion trends, Gen Z is transforming how India consumes. This digital-first generation doesn't just buy; they curate experiences, demand personalization, and look for authenticity in every swipe and scroll. As India's 440-million-strong Gen Z cohort begins to dominate discretionary spending, platforms built to speak their language stand to gain immensely. Nykaa, India's leading content-led, lifestyle retail platform, is at the forefront of this generational shift

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Company Overview: A Digital Lifestyle Powerhouse

Founded in 2012, FSN E-Commerce Ventures Ltd (Nykaa) is a digitally native consumer-tech platform offering beauty, personal care, and fashion products across online and offline channels. The company operates a differentiated, content-led model, allowing for deep brand discovery and consumer engagement. Today, Nykaa serves over 42 million customers across India under its “One Nykaa” ecosystem, integrating platforms, verticals, and supply chains across Beauty & Personal Care (BPC), fashion, owned brands, and eB2B distribution.

Industry Overview

Nykaa operates at the intersection of beauty and fashion, two of the most vibrant and fast-growing verticals in India’s discretionary consumption and e-commerce landscape. The Indian e-commerce market, currently valued at USD 60 billion, is expected to grow nearly 3x to USD 170-190 billion by 2030. Beauty and fashion together already account for 23 per cent of total online spending-a figure projected to reach 33 per cent by the end of the decade. These categories also make up around 25 per cent of discretionary spending, which in turn contributes 53 per cent of total retail expenditure-underlining their structural importance in the Indian consumption story.

At the heart of Nykaa’s business is the online BPC segment, which has shown exceptional growth-delivering a 40-42 per cent CAGR between 2020-2025, and expected to continue at a 23-25 per cent CAGR through 2030. Online fashion, Nykaa’s second key vertical, is also on a similar growth trajectory. What makes Nykaa particularly well-positioned is its strategic focus on the premium-to-luxury segment, where the addressable market is projected to triple by 2030, growing at a 25-30 per cent CAGR. This higher-end positioning not only supports superior margins but also aligns well with rising consumer aspirations.