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Beauty and the e-commerce beast: The Nykaa vs. Mamaearth showdown

The fierce competition between Nykaa and Mamaearth highlights the dynamic and promising nature of India's e-commerce sector. Find out more!

India’s e-commerce market is a colourful tapestry with two main stories that are linked by creativity, strategy, and a focus on the customer. Introducing FSN E-Commerce Ventures Ltd., the company behind Nykaa, and Honasa Consumer Ltd., the company behind Mamaearth.

These two titans are not just shaping their destinies, but also the future of a market that was valued at a staggering $14 billion in 2023 and is projected to soar to an impressive $18.76 billion by 2030, growing at a CAGR of 34%.

Embark on an exciting journey into the realms of beauty, wellness, and online retail as we decode their tactics, analyse their triumphs, and clarify their obstacles. Introducing the epic battle between Nykaa and Mamaearth, a narrative that embodies the vibrancy and promise of India’s flourishing fashion e-commerce scene.

Company profiles

FSN E-Commerce Ventures Ltd

FSN E-commerce Ventures Ltd., widely recognised as Nykaa, operates as a consumer-centric tech platform, offering a rich, content-driven shopping experience in lifestyle retail. It boasts a varied selection of beauty, personal care, and fashion items, including its range of in-house produced brand products.

FSN e-commerce, or Nykaa prioritises aligning its product range with market suitability, continuous consumer interest, and prevailing market trends within its merchandising and selection approach.

In the fiscal year 2022, the company initiated an Initial Public Offering (IPO), which comprised a fresh issue worth ₹6,300 million and an offer for sale by the selling shareholders to the tune of ₹47,197.24 million.

As of April 25, 2024, the FSN e-commerce share price is ₹176.50. Looking at the historical data, we can see that FSN e-commerce has given a return of 50.92% over a year. 

Nykaa share price

Source: Google Finance

Honasa Consumer Ltd

Honasa Consumer Limited is a digitally-oriented collection of brands catering to the beauty and personal care segments for the millennial demographic. The company is distinguished by its commitment to its mission, adoption of technology, and agility in adapting to changing consumer tastes.

The company specialises in the beauty and personal care industry, boasting a diverse range of six beauty and personal care (BPC) brands: Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s. Each brand offers unique value propositions. 

Its product lineup spans baby care, face care, body care, hair care, colour cosmetics, and fragrances. Complementing these offerings is the company’s chain of professional salons and  BBlunt Salons.

Established in 2016, Honasa has broadened its reach to encompass more than 700 districts, persistently enlarging its brand presence to serve the varied requirements of its clientele.

As of April 25, 2024, the Honasa consumer share price is ₹426.00. Looking at the historical data, we can see that Honasa’s consumer share has given a return of 26.37% over a year. 

Honasa Consumer share price

Source: Google Finance

Honasa consumer share price target was set at ₹500.00 according to a recent research analysis by Emkay Global Financial Services. 

In the fiscal year 2023, the company initiated an Initial Public Offering (IPO), which comprised a fresh issue worth ₹3,650.00 million and an offer for sale by the selling shareholders to the tune of 41,248,162 equity shares. Honasa Consumer Pvt ltd funding needs were chiefly allocated for marketing activities and capital investments related to establishing Exclusive Brand Outlets (EBOs).

Financial profiles

Now, let’s compare the financials of both the companies.

FSN E-Commerce Ventures Ltd(Q3 of FY23)Honasa Consumer Ltd(Q3 of FY23)
Revenue (₹ crores)1,789451
Operating profit (₹ crores)9934
Profit before tax (₹ crores)2637
Net profit (₹ crores)1729
EPS (₹)0.060.90

Source: Screener

Reasons for growth

FSN E-Commerce Ventures Ltd

  1. Innovative marketing: Events such as Nykaaland and category-building initiatives have led to increased customer retention and acquisition rates.
  2. Innovation in product line: The company’s dedication to innovation has resulted in the creation of a wide range of new products, which has attracted a more diverse group of customers.
  3. Brand building: The company’s market position and brand recognition have been bolstered by strategic brand-building initiatives.
  4. Operational efficiency: Efficiencies in the supply chain and operations have led to cost reductions and improved profitability.

Honasa Consumer Ltd

  1. Product expansion: The growth can be attributed to the introduction of new products like the Rosemary haircare range and the expansion into new categories such as colour cosmetics.
  2. Brand penetration: The rise in household penetration in important product categories such as face washes and shampoos has contributed to the growth of market share.
  3. Omnichannel distribution: Honasa Consumer Pvt. Ltd. has significantly enhanced the accessibility and visibility of its products through a strategic focus on omnichannel distribution, marked by its presence in 1,70,000 outlets and the inauguration of its 100th Exclusive Brand Outlet (EBO) store.

Company strategies

FSN E-Commerce Ventures Ltd

  1. Growth focus: The company is focused on maintaining its growth trajectory across all verticals, with a strong emphasis on expanding the customer base and increasing market share.
  2. Category expansion: Nykaa aims to make strategic investments in initiatives that will help build and expand product categories, as well as educate customers, to boost the per capita consumption of beauty products in India.
  3. Assortment growth: Concerning the fashion segment, Nykaa has plans to broaden its range of products, aiming to create a more comprehensive platform that enhances customer conversion and loyalty.
  4. Strategic partnerships: The company is forging strategic partnerships, such as the collaboration with Footlocker, to enrich its product offerings and appeal to a wider customer base, with a particular emphasis on premium sports and sneakers.

Honasa Consumer Ltd

  1. Brand expansion: Emphasise the expansion of emerging brands and the exploration of new product lines, such as colour cosmetics, through strategic store tactics.
  2. Innovation and NPD: Continuously strive to innovate and introduce fresh products, utilising the power of data science to tap into the latest consumer trends.
  3. Omnichannel distribution: Enhance and broaden omnichannel distribution, while expanding reach in modern trade and exclusive brand outlets (EBOs).
  4. Sustainability and governance: Adhere to a philosophy centred around purpose, with a keen emphasis on sustainability and governance, including the preparation of upcoming sustainability reports.

Future outlook of the industry

There is a strong anticipation for substantial growth and transformation in the e-commerce industry, specifically in the fashion and personal care sectors. The e-commerce sector has experienced significant growth due to the pandemic, transitioning from a surge in online transactions during lockdowns to a delicate balance between virtual and physical realms. 

FSN E-Commerce Ventures Ltd. (Nykaa) and Honasa Consumer Ltd. (Mamaearth) have a great opportunity to benefit from this growth. They have established themselves as strong brands, offering innovative products and implementing effective digital strategies. This growth is expected to be further fueled by the increasing internet penetration, growing consumer awareness, and rising disposable income in India.

In addition, the industry is expected to see a rise in personalised offerings, improved customer service, and the integration of advanced technologies such as AI and AR to enhance the overall shopping experience. In the future, sustainability and ethical sourcing are anticipated to play a crucial role in setting businesses apart from their competitors.

Nevertheless, the industry could encounter obstacles like fierce competition, shifting consumer preferences, and regulatory adjustments. Businesses that can swiftly adapt to these changes while prioritising customer satisfaction are poised to become frontrunners in this dynamic e-commerce landscape.


The fierce competition between Nykaa and Mamaearth highlights the dynamic and promising nature of India’s e-commerce sector, while also emphasising the significant impact they can have on the fashion and personal care industries.

With their groundbreaking strategies, unwavering focus on customers, and relentless drive for expansion, these two industry leaders are setting the standard for businesses worldwide.

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StockGro Team

StockGro is India’s first and largest ‘Social Investment’ platform aimed at helping you master the art of “Trading & Investment”. Trade, Invest and get rewarded to Learn everything about ‘Investments’ the fun-filled way.

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