Amid the quick-commerce boom in India, Nykaa is not focusing on 10-minute deliveries. Instead, the beauty and fashion ecommerce giant is aiming for delivery times of 30 minutes to 2 hours for select, high-demand beauty products.
Ultrafast delivery doesn’t align with our service – CEO Nykaa
According to INC42, Anchit Nayar, CEO of Nykaa‘s beauty ecommerce business, said in the company’s post-earnings conference call, “Nykaa’s beauty customers often need time to choose the right products, like the correct foundation shade, so ultrafast delivery doesn’t always align with our service.”
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Further, Nayar highlighted that Nykaa will provide faster delivery options but won’t sacrifice customer experience in categories that need more thought. However, Nykaa is eager to focus on quickly delivering everyday essential items. These popular beauty essentials are in high demand and are an important part of the company’s business.
Particularly in these categories, Nykaa is introducing fast delivery services in select metro cities, ensuring quick delivery speeds without greatly affecting its margins. Notably, it was reported last month that the company was testing a 10-minute delivery service in parts of Mumbai, covering 10% of its products.
Nykaa claims 70% of next-day delivery
During the call, Falguni Nayar, CEO of Nykaa, mentioned that the company’s investment in infrastructure, especially its network of warehouses in state capitals across India, has improved delivery times. Nykaa now claims that 70% of its orders are delivered the next day, a 45% improvement from before.
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Meanwhile, D2C beauty and fashion major mentioned that their same-day and next-day delivery services cover 80% of deliveries in the top 12 cities and 70% in the top 110 cities of the country, in an investor presentation. Nayar also noted that no extra capital was spent on expanding their warehouse network in the first half of FY25. She stated that the company’s investment in infrastructure is not a heavy expense and is expected to boost profit margins, thanks to Nykaa’s high average order value.
However, the D2C major thinks this expansion will improve its profit margins instead of hurting them. Nykaa’s consolidated net profit increased by 66.3% to INR 12.97 crore in Q2 FY25, up from INR 7.8 crore in the same period last year, driven by strong growth in the beauty and personal care (BPC) segment.
