Nykaa Boosts Ad Spend by 33% in FY25

Nykaa’s Big Bet on Advertising Pays Off in FY25

Nykaa, the well-known beauty and fashion e-commerce giant, has made headlines by ramping up its advertising and marketing expenses by a whopping 33% in the financial year 2024-25 (FY25). The company spent a total of ₹958 crore on marketing and ads this year, compared to ₹720 crore in FY24. This bold move seems to be working as Nykaa also reported strong growth in both revenue and profits.

Let’s break down what this means for Nykaa, its customers and the Indian online shopping scene.

How Much Did Nykaa Spend on Ads?

In FY25, Nykaa’s total marketing and advertising spend reached ₹958 crore. That’s a jump of ₹238 crore from last year—a 33% increase! Here’s how the spending was split:

• Beauty Segment: ₹620 crore (up 34.2% from ₹462 crore last year)
• Fashion Segment: ₹331 crore (up 29.8% from ₹255 crore last year)
• Other Segments: The rest was spent on other categories, which are also growing fast.

Just in the last quarter (January–March 2025), Nykaa spent ₹244 crore on ads, up 31% from ₹186 crore in the same quarter last year.

Why Is Nykaa Spending So Much on Marketing?

Nykaa faces tough competition from other e-commerce giants like Amazon, Flipkart, and Myntra. To stay ahead, Nykaa is investing heavily in advertising to:

• Attract new customers and keep existing ones loyal
• Promote its wide range of beauty and fashion products
• Build a stronger brand presence, both online and offline

The company’s ad campaigns are everywhere—on TV, social media, digital platforms, and even offline events. Nykaa also partners with influencers and celebrities to reach younger shoppers and beauty enthusiasts.

Did All That Spending Work?

The numbers say yes! Nykaa’s big investment in advertising has paid off with impressive growth:

• Total Revenue: ₹7,950 crore in FY25 (up 24.5% from ₹6,386 crore in FY24)
• Beauty Revenue: ₹7,251 crore (up 24.8%)
• Fashion Revenue: ₹674.7 crore (up 18.7%)
• Other Revenues: ₹23.96 crore (up a whopping 223.8%)
• Gross Profit: ₹3,477 crore (up 27% from last year)
• Net Profit (Jan–Mar 2025): ₹6.9 crore (up 29.2% from ₹5.3 crore last year)

Nykaa’s Gross Merchandise Value (GMV) for the last quarter reached ₹4,102 crore, up 27.5% year-on-year. This means more people are shopping on Nykaa than ever before.

Where Is Nykaa Growing the Fastest?

The beauty segment is still Nykaa’s biggest earner, making up the majority of sales. But the fashion segment is also growing quickly, thanks to new brands, trendy collections, and aggressive promotions.

Nykaa’s other segments—like personal care and wellness—are also starting to contribute more, showing that the company is expanding beyond just beauty and fashion.

What Does This Mean for Shoppers?

For customers, Nykaa’s increased ad spending means:

• More exciting offers and discounts
• Wider variety of products and brands
• Engaging content, tutorials, and influencer collaborations
• Easier access to the latest trends in beauty and fashion

Nykaa’s strong marketing push makes it easier for shoppers to discover new products and enjoy a better online shopping experience.

The Road Ahead

Nykaa’s strategy of investing heavily in advertising and marketing is helping it stay ahead in a crowded market. With rising revenues, growing profits, and a loyal customer base, Nykaa is set to keep leading the beauty and fashion e-commerce space in India.

Industry experts believe that as long as Nykaa continues to innovate and connect with customers through smart marketing, its growth story will continue.