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Nykaa Business Model & Revenue Model | Development Cost of Nykaa

10648 Views | 1 min | Published On: November 18, 2021 Last Updated: March 12, 2024
Nykaa business model

Nykaa is an Indian beauty, wellness, and fashion online store founded in 2012 by Falguni Nayar. Within the year 2019, Nykaa closed its funding at $750 million making its highest valuation.

Although Nykaa had a slow beginning with other e-commerce websites as a result, it has made it clean for everyone to purchase an excellent product from an honest internet site, and because of that, in recent years it has changed its photo and revolutionised the beauty enterprise.

With over 1 lakh beauty merchandise and over 800+ Nykaa is extra than prepared to fulfill customers’ needs. If you are also seeking to make funding on-call for cosmetic product transport and questioning approximately how many tons it costs to develop an on-demand app like Nykaa.

Here we have a detailed explanation about the Nykaa app, so stay there to know about the Nykaa business model, revenue model, and how much does it cost to develop an app like Nykaa.

Know about Nykaa


Nykaa Business Model

Nykaa business model follows a stock-primarily based commercial enterprise version wherein all gadgets are stored at a particular area in an inventory. Processing of orders is carried out according to the availability of merchandise in the inventory. Nykaa is using this stock-primarily based commercial enterprise version, also buys products without delay from shops and manufacturers.

business model of nykaa

Key Activities In Nykaa Business Business model

Two value chain activities are included in the Five value chain resources are Nykaa business model :

Primary Activities In Nykaa Business Model

There are 5 categories in Primary activities:

Inbound logistics

These logistics are related to sharing, receiving, and storing inputs of merchandise. Material dealing with, warehousing, and architecture are blanketed in this for retaining the database of customers for Nykaa. The company has outsourced most of these sports. 


Inside the operations process, the uncooked fabric is transformed into the very last product. There are quite a lot of activities in Nykaa’s café. This consists of patron information amassed from the database of Nykaa to make new strategies for the organization in keeping with the buying conduct of customers.

Outbound logistics

This is associated with the distribution of the final goods of Nykaa to the clients and channel companions. Stores, wholesalers, and distribution channels are blanketed on this.

Sales and marketing

The principle recognition of sales and advertising activities in Nykaa business model is to create an income medium via which capability customers of the agency should buy its products. This class consists of diverse activities like pricing strategies, promotional activities, advert campaigns, and selection of channels, and so forth.

Advertising strategies of Nykaa

Within the digital global, Nykaa works on a digital marketing model. Nykaa has followed top-notch virtual advertising and marketing techniques to target all styles of audiences in each demographic having internet access i.e girls and women, college students, and professionals. Nykaa makes use of below mentioned specific virtual advertising techniques:

  • Content advertising 
  • Youtube-primarily based advertising
  • Platform advertising
  • Search engine optimization (search engine optimization)
  • Email marketing
  • Influencer advertising
  • Social media optimization
  • Facebook 

Supporting Activities In Nykaa business Model

There are some value chain supporting activities are there mentioned below:

The Firm Infrastructure

This includes first-class management, making plans, and prison services, popular management, and finance & accounting. Those sports play a full function in supporting the value chain of Nykaa. Making plans and financing strategies of Nykaa are defined at the corporate stage, great management, and legal and accounting paintings on the business unit level.


The most distinguished aspect in Nykaa is the era as it supports nearly all functioning of the corporation. Distinctive sports along with technology choice, procedure engineering, discipline-trying out, and issue & feature design are protected in Nykaa’s generation development.

Human Resource Management (HRM)

The human aid management of Nykaa facilitates the company in exclusive key sports together with hiring and selection of employees, assessing and growing talents of employees, human beings planning, training, and repayment.

Also Read: How Much Will It Cost to Make a Beauty On Demand App Like GlamSquad?

Key Resources in Nyka Business Model

Five value chain resources are included in Nykaa business model :

Social Media

One of the key assets of Nykaa is its social media. The social media advertising and marketing of the corporation is extremely good and a notable source of displaying advertisements and different useful and informative content related to their products.

Website And Online App

The website of Nykaa i. E. Nykaa. Com is a terrific aid for the organization for selling its products online. Further, Nykaa’s app permits clients to pick from extra than 1 lac beauty products online and greater than 850 manufacturers.

Virtual Stores

Nykaa additionally has its offline digital stores wherein customers can go for beauty recommendations, digital makeover devices, loose professional advice, help on the cellphone, and articles on beauty traits, etc.


The group of Nykaa is particularly lively, influenced, and includes young people.


Specific generation services and products are used by Nykaa which might be its key assets that consist of google analytics, html5, jquery, and many others. For its internet site, the emblem is the usage of 48 technology which includes google analytics, viewport meta, and iPhone or mobile well matched. (supply)

Customer Relationship

Online Content Creation

Nykaa has a content approach that is aimed at educating and generating awareness among customers who are seeking out brilliant shopping to enjoy with the advanced era.


Nykaa makes use of distinctive gear to facilitate clients. Equipment which includes the month-to-month shopping for publications and different seasonal or competition stores for sale guidance like monsoon store, eyeliner and kajal keep, summer save, Diwali shop, skincare with the aid of age are especially supposed for the gain and comfort of clients.

Nykaa Support

Nykaa presents customer service related to buying, order, payments, and others through email and patron care contact a wide variety. Additionally, it has a grievance mobile to handle the grievances of customers.

How Does Nykaa Generate Revenue?

According to Crunch as of 2020, Nykaa is well worth $1. 2 billion, making the splendor brand the maximum a hit startup in the USA. To its stock model, Nykaa efficiently broke even in 2017, just 5 years after the web splendor store began operations. 

Even as the authentic fee of obtaining a consumer turned into approximately INR one thousand, it was reduced to 200-250. The splendor logo generated a revenue of 1,159. 32 crores in 2019, up from 108% from the preceding financial year. The organization turned big earnings in 2019 with a yield of two. Fifty-one crores.

The employer raised 214 crores in 2017 and has crossed six hundred crores. It simply indicated that the employer is developing rapidly. The organization is based totally in Maharashtra and raised around $107. 9 million.

Revenue model of nykaa

Product sales

The brand sells its merchandise and the goods of its partnered manufacturers, which is the number one supplier of the revenue of the logo.

Brand Advertisement

The banner commercials of the agency additionally help it carry in plenty of visitors, a lot of which turn into income.

Discount earnings, earnings from commissions, and miscellaneous earnings are some other resources of revenue for the emblem.

How Much Does It Cost To Make An App Like Nykaa?

Nykaa app has revolutionised the cosmetic industry and made an exceptional person base within a quick period. The beauty enterprise has grown now greater than ever and has turned out to be necessary for all and sundry, now not just women. Subsequently, this is the time to take this as a bonus to enter into this industry.

Do you need to unfold your beauty enterprise with the power of technology? Then hire us to get top-notch On Demand Beauty Services from Apptunix, a top mobile app development enterprise. You get this app in the variety of $35k-$45k.


Numerous customers are satisfied to receive the beauty products at home. It is also vital to provide the clients with top-notch offerings. This will bring about the growth of your enterprise within the market and it will stand precise at the structures integrated with the app. 

As of now, you have read about Nykaa Business Model, the Revenue model, and the cost structure of fashion apps like Nykaa after reading if you are also interested in developing your Five value chain resources are beauty app you can reach us.

Nykaa Business model


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