How To Make an App Like Nykaa: Business Model, Features & Cost Explained

Beauty shopping has gone digital, and it’s not going back. A decade ago, if you wanted a lipstick or skincare product, your best bet was walking into a store, talking to a sales assistant, and testing what was available. Fast forward to now millions of customers scroll, compare, and buy beauty products online with the same confidence than they would in person.

The reason? Trust in digital-first platforms like Nykaa.

So if you’re an entrepreneur thinking about how to make an app like Nykaa, you’re not chasing a fad—you’re entering a market that has already proven its appetite. India’s online beauty and personal care market is expected to cross $28 billion by 2030, and apps are driving this growth. Platforms that combine convenience, variety, and personalization are winning customers’ loyalty faster than traditional retail ever could.

That’s why Nykaa is such an important case study. In this blog, we’ll unpack Nykaa’s story, its business model, the features you’d need to replicate, and the  mobile app development cost so you can make smarter investment decisions.

Nykaa Business Model Explained: How Does Nykaa Work?

Nykaa’s journey is a masterclass in timing, execution, and persistence. Launched in 2012 by Falguni Nayar, a former investment banker, the platform began with a simple idea—making global beauty products easily available to Indian consumers. What looked like a niche play back then grew into India’s largest beauty marketplace app development story.

Now let’s talk numbers, because they matter. By FY25, Nykaa’s revenue touched ₹7,950 crore, marking a 24% year-on-year jump. Its profits grew by a staggering 110% in Q4 FY25 compared to the year before. The company isn’t just profitable—it’s scaling aggressively.

Here’s a snapshot of Nykaa’s reach:

• 42 million+ active customers shop through its platform.
• Over 276,000 retailers are connected through Nykaa Superstore (B2B arm).
• Nykaa serves 1,100+ Indian towns, proving its deep penetration beyond metros.
• Beauty GMV (Gross Merchandise Value) surged to ₹11,775 crore in FY25, up 30% year on year.
• Fashion, once a side vertical, now contributes significantly with ₹3,669 crore GMV in FY25.

What really stands out is the omni-channel approach. Nykaa operates over 200 physical stores across India, offering the touch-and-feel assurance for premium products. This blend of online scale and offline credibility has made it the go-to platform for millions of first-time digital shoppers.

For entrepreneurs considering on-demand beauty app development, Nykaa proves that the playbook works: build a digital-first platform, layer in community and trust, then expand offline to lock in brand loyalty.

At its core, Nykaa operates like a well-oiled beauty marketplace, but the magic lies in how smooth and engaging the user experience feels. A shopper opens the app, browses through an endless catalogue of global and Indian brands, discovers products through curated categories or influencer content, adds items to the cart, checks out in just a few taps, and receives doorstep delivery within days. Simple, right? But behind this simplicity lies a carefully engineered customer journey.

So, How Exactly Does Nykaa Make Money?

The Nykaa business model is built on an innovative hybrid of inventory-led selling and a curated marketplace. Here’s why that matters.

When Nykaa sells products from its own inventory, it controls quality, ensures authenticity, and captures more substantial margins. This is crucial in the beauty industry, where counterfeits are common and consumer trust is fragile. On the other hand, the marketplace model provides Nykaa with access to thousands of third-party brands, creating variety and choice that a single retailer could never match.

Revenue doesn’t stop there. Nykaa has built multiple income streams:

1. Retail Sales: Both inventory and third-party products.
2. Private Labels: Brands like Nykaa Cosmetics, Kay Beauty, and Dot & Key, which alone drove ₹2,100 crore GMV in FY25.
3. Advertising & Partnerships: Brands pay for visibility on the app, tutorials, and influencer tie-ups.
4. Subscriptions & Loyalty Programs: Nykaa Privé keeps customers coming back.
5. Offline Stores: High-margin luxury sales through Nykaa Luxe outlets.

They also cracked what most eCommerce companies struggle with cross-category expansion. Nykaa Fashion now stands on its own legs, contributing billions to overall GMV. This diversification spreads risk while growing the customer base. And they’re not slowing down. For anyone exploring Uber clone app development or custom beauty app development, here’s the lesson: a beauty app isn’t just about selling products. It’s about building an ecosystem where commerce, content, and trust reinforce each other.

Benefits Of Developing An App Like Nykaa

• Improves The Client Experience

In general, an on demand beauty app enables you to provide higher value to your consumers. They can quickly look through your services, schedule appointments, and discover more about what you have to offer.

While the beauty sector is flourishing, success is not assured, especially among startups, due to increased competition. You’d want to gain a competitive edge by putting your services at your clients’ fingertips.

You can improve and maintain your relationship with them by making things simple and comfortable for them.

• Multiplies The Income Stream

The absence of imagination and innovation might sometimes be the only thing standing between you and money generation. By restricting your resources and settling for a brick-and-mortar store instead of bringing your products and services online, you are setting your business up for failure.

You may have an extra revenue stream depending on the business strategy of your on demand beauty app. Furthermore, by offering the convenience of an on demand approach, you can attract more regular, paying consumers.

Many consumers prefer to schedule appointments ahead of time or arrange at-home treatments. In these situations, an app comes in handy.

• Helps in Marketing Activities

An on demand beauty app can act as a direct line of contact between you and your consumers. While having a social media presence is beneficial, it is not always sufficient. 

You may send push alerts to your consumers about the newest specials if you have your own on demand beauty app. You can quickly inform customers of new services, discounts, and other special offers. Having an app also provides you with a plethora of chances to thank your loyal consumers on a regular basis.

• Improves Opportunities For Employees

Having an app for your business benefits your employees as well. For starters, people can work from home. They can only supply services when they are required.

They don’t have to wait and sit around all day for people to come in. As a result, individuals can be able to work another job and make more money.

Must-Have Features for an On-Demand Beauty App Like Nykaa

For entrepreneurs aiming to make an app like Nykaa, it’s important to remember that the tech isn’t just about transactions. The real value comes from creating an ecosystem where product discovery feels personalized, checkout feels effortless, and post-purchase support feels reliable. That’s the difference between a one-time sale and a lifelong customer. Let’s break down what’s essential.

User-Facing Features

A successful beauty marketplace lives or dies by its customer experience. Here are the essentials every shopper expects:

• Product Catalog & Categories – An extensive, well-structured catalog that allows users to explore thousands of products with clear categorization.
• Advanced Search & Filters – Filters for brand, price, skin type, shade, and customer ratings so buyers can quickly find what suits them.
• Ratings & Reviews – User-generated reviews and verified purchase ratings build credibility and influence buying decisions.
• Virtual AR Try-On – Augmented reality tools that let users test lip shades, foundations, or hair colors before purchase.
• Wishlist & Favorites – Save products for later with quick access to personalized shopping lists.
• Multiple Payment Options – Secure payments through cards, wallets, UPI, BNPL (Buy Now Pay Later), and COD.
• Smart Checkout & Tracking – A quick checkout process with real-time delivery updates to keep users informed.

Admin-Facing Features

The front end may attract users, but the backend keeps the entire engine running. These are must-haves for smooth operations:

• Inventory Management – Track stock levels, manage replenishment, and avoid overselling.
• Order & Delivery Tracking – End-to-end monitoring of orders, from placement to last-mile delivery.
• Vendor Management – Manage multiple beauty brands, sellers, and partners in one centralized system.
• Product Information Management – Upload, edit, and manage product details, pricing, and images efficiently.
• Discount & Promotion Control – Create and manage promo codes, seasonal discounts, and flash sales.
• Customer Support Dashboard – Handle queries, returns, refunds, and complaints directly through the admin panel.
• Analytics & Reports – Detailed insights into sales, revenue, customer behavior, and best-performing products.

Advanced Features

This is where differentiation happens—where you move from being another eCommerce app to a true beauty-tech platform.

• AI-Driven Personalization – Tailor product recommendations based on browsing history, skin tone, or buying patterns.
• AR-Based Try-On – Interactive tools for testing makeup shades or hairstyles virtually, reducing return rates.
• In-App Beauty Tutorials – Video guides, expert tips, and influencer-driven tutorials that educate and inspire purchases.
• Loyalty & Reward Programs – Exclusive points, cashback, and membership benefits to boost customer retention.
• Subscription Model – Beauty box subscriptions with curated products delivered monthly.
• Social Shopping Features – User-generated content, community reviews, and influencer storefronts to drive engagement.
• Multi-Language & Multi-Currency Support – Critical for scaling your custom beauty app development into international markets.

Key Technologies Powering Apps Like Nykaa

If you want to make an app like Nykaa, you can’t ignore the technology stack that powers the user experience behind the scenes. The Nykaa business model works because of one simple truth: customers don’t just buy products, they buy convenience, confidence, and personalization. Technology is what makes all of that possible at scale.

Here’s a closer look at the core technologies shaping beauty marketplace app development today:

1. Artificial Intelligence & Machine Learning

Nykaa’s AI-powered engine doesn’t just recommend random lipsticks. It learns from browsing history, purchase behavior, and even social trends. According to McKinsey, personalization can drive up to 40% more revenue for digital retailers. For startups, integrating AI into their custom beauty app development ensures they can deliver that same personalized magic from day one.

2. AR & VR for Virtual Try-On

One of Nykaa’s biggest innovations is its AR-based “try-on” feature. Customers can test hundreds of lipstick shades in seconds without stepping into a store. This isn’t just a gimmick—Snap Inc.’s research shows that AR try-on experiences increase conversion rates by 94% in beauty and fashion apps. For anyone investing in Nykaa clone app development, AR is no longer optional, it’s expected.

3. Secure Payment Gateways & Digital Wallets

With 100M+ app downloads and thousands of daily transactions, Nykaa’s trust comes from secure payment processing. Multiple gateways, wallet integrations, UPI, and BNPL options reduce checkout friction. In on-demand eCommerce app development, offering choice in payments is proven to cut cart abandonment rates by 20–30%.

4. Cloud Hosting & Scalability

Imagine festive season sales where traffic surges by millions overnight. Without cloud hosting (AWS, Azure, or GCP), apps crash, customers churn, and trust erodes. Scalable cloud architecture ensures uptime, even during spikes. This is a must-have for any beauty marketplace app development project aiming to compete with Nykaa’s scale.

5. Analytics & Insights Engines

Every scroll, every wishlist add, every abandoned cart—it’s all data. Nykaa uses this data to predict demand, optimize stock, and even plan offline store launches. Startups who ignore analytics during beauty app development services miss the chance to build smarter strategies.

6. Push Notifications & Engagement Tools

Smart notifications drive repeat sales. Nykaa’s limited-edition drops, flash sale alerts, and “back in stock” nudges create urgency. Tools like Firebase or OneSignal integrated with behavioral data keep engagement high.

7. Logistics & Supply Chain Tech

Behind the glitz of AR and AI lies Nykaa’s operational backbone. Integrating real-time order tracking, warehouse management systems, and courier APIs ensures the hybrid Nykaa business model runs smoothly.

Cost to Develop an On-Demand Beauty App Like Nykaa

Now comes the burning question every founder asks: What’s the Nykaa app development cost? The short answer: it depends. The long answer: the cost to build a beauty app is shaped by the features you want, the complexity of your platform, and the development partner you choose. Let’s break it down.

1. Features & Functionality

A simple MVP with catalog browsing, search filters, secure checkout, and delivery tracking might get you started at a lower cost. But once you add AR try-ons, AI-powered personalization, influencer integrations, loyalty programs, and a vendor marketplace, the investment grows significantly.

2. Technology Stack

Going with standard eCommerce modules is cheaper upfront, but a scalable, future-ready stack (AI, AR, cloud, advanced analytics) adds value long-term. Businesses looking at Nykaa clone app development should think beyond copy-pasting features and focus on building smarter infrastructure.

3. Platforms: iOS vs Android vs Cross-Platform

Launching on a single platform is cost-effective but limits reach. Cross-platform frameworks like Flutter or React Native cut costs by 30–40%, letting you launch on both iOS and Android faster.

4. Design & UX

Beauty is aspirational. The design of your app must reflect that. Nykaa’s crisp UI/UX, shade-matching visuals, and sleek flow are not accidents—they’re investments. Strong design accounts for 15–20% of the total cost.

5. Timeline & Development Team

An MVP can take 3–6 months with a small team. A full-scale beauty marketplace app development project with multi-vendor capabilities, AR, and analytics may run 9–12 months. The more specialized the team (AI engineers, AR developers), the higher the cost.

6. Partnering With the Right Company

Working with an experienced on-demand app development company means you’re not just paying for code. You’re paying for strategy, user behavior insights, and proven frameworks that reduce trial-and-error. That often saves money in the long run.

Why Partner with Apptunix to Build a Nykaa-like App?

If you’re serious about entering this market, you’ll need a development partner who understands more than just code. Apptunix is not just another on-demand eCommerce app development company—we’ve been building scalable platforms for over a decade across industries. Here’s why startups and enterprises choose us for Nykaa clone app development and beyond:

Proven Expertise in eCommerce & On-Demand Apps
From fashion to fitness to food delivery, we’ve delivered successful apps that attract millions of users. That experience translates into actionable strategies for your on-demand beauty app development project.

AI & AR-Powered Shopping Platforms
We specialize in integrating AI-driven personalization engines and AR/VR try-on solutions—the very technologies that make apps like Nykaa addictive.

End-to-End Beauty App Development Services
We don’t stop at coding. Our process covers design, development, launch, and long-term support. Whether you need an MVP to test the market or a full-scale beauty marketplace app development project, we tailor solutions to fit your vision.

Scalable Solutions for Startups & Enterprises
Apptunix has helped startups scale into category leaders. By leveraging reusable modules and proven frameworks, we keep your Nykaa app development cost optimized without compromising quality.

Read Our Case Study- Luxbubble

To Sum Up

Consumers are shifting online at a faster pace than ever, seeking seamless shopping experiences, curated recommendations, and interactive experiences. The hybrid Nykaa business model, powered by trust, technology, and personalization, turned it into a billion-dollar brand. The truth is, there has never been a better time to make an app like Nykaa.

A strategic approach to  salon app development where you balance MVP essentials with advanced differentiators. But success isn’t just about building features: it’s about building the right product, with the right partner. That’s where Apptunix comes in. We’ve helped brands across industries move from idea to IPO-level growth.

With years of expertise in on-demand beauty app development, scalable architectures, and proven experience in AI and AR-powered shopping, we’re your launchpad to success.