Shares of FSN E-Commerce Ventures, the parent company of Nykaa, fell nearly 4% on Friday to trade at ₹226 apiece, extending losses even after the company announced its first major global expansion move. The stock slipped from its previous close of ₹233.84, making it one of the top losers on the NSE in early trade.
Nykaa has launched Kay Beauty, its celebrity-backed brand co-created with actor Katrina Kaif, in the United Kingdom through a partnership with luxury beauty retailer Space NK, owned by Ulta Beauty. The brand will initially roll out across 13 stores and Space NK’s online platform, marking the first time an Indian-founded beauty label is featured in the retailer’s curated portfolio.
The company highlighted the global ambition of this move, calling it a milestone for Indian consumer brands. “The launch of Kay Beauty in the UK is more than just a brand milestone. It marks the beginning of a new chapter for Indian consumer brands with global ambitions,” said Adwaita Nayar, co-founder and executive director at Nykaa.
However, despite the announcement, investor sentiment appeared cautious. According to Bloomberg Intelligence, while the UK represents a £30-billion cosmetics market, Nykaa will face formidable competition from global heavyweights such as L’Oréal, Estée Lauder, and fast-rising entrants like TikTok Shop. The brand will launch with 197 SKUs in its debut collection.
Market experts note that concerns over the stiff competitive landscape, profitability challenges in international expansion, and potential high costs have weighed on the stock in early trading, leading to the decline.
