Hyderabad, September 20, 2024: Beauty and fashion ecommerce giant Nykaa has further solidified its international presence with the incorporation of a wholly-owned subsidiary in Saudi Arabia, named Nysaa Trading LLC. This strategic move aligns with Nykaa’s broader plan to tap into the lucrative Middle Eastern market.
Nysaa Trading LLC will primarily focus on retailing beauty and personal care (BPC) products, including cosmetics, toiletries, hair care, perfumes, and beauty soaps, both online and offline. The subsidiary has been established with a subscribed share capital of 3 Lakh Saudi Riyal (approximately INR 6.67 Cr).
This development comes on the heels of Nykaa’s recent expansion into Qatar with the incorporation of Nysaa Cosmetics Trading. Earlier this year, the company also opened its first physical store under the Nysaa brand in Dubai, marking its entry into the international market.
Nykaa’s partnership with Apparel Group, a leading omnichannel retailer in the UAE, has been instrumental in its GCC market penetration. The company aims to establish a strong presence in the region with plans to open 70 stores under the Nysaa brand within the next five years.
While Nykaa continues to make significant strides in the Middle East, it has also been focusing on enhancing its domestic operations. The company has been aggressively expanding its same-day and next-day delivery services, reaching 60% of its orders within the next day across top 110 cities.
However, Nykaa has faced some challenges in recent times. Kotak Institutional Equities recently downgraded the company’s rating and lowered its fair value, citing concerns over its growth prospects. Despite this, Nykaa’s shares have shown resilience, trading 1.22% higher on the BSE today.
With its strong brand recognition and growing international presence, Nykaa is well-positioned to capitalize on the expanding beauty and personal care market in the Middle East and beyond.d
