A dream that she began pursuing at the age of 50 finally bore fruit, with Falguni Nayar becoming the latest addition to the global self-made billionaire club. Being the founder of India’s leading beauty and fashion e-comm business- Nykaa, Nayar has become one of the few self-made female billionaires of the country. As Nykaa made its recent market debut, the huge IPO boost pushed not only the unicorn company’s market value but also Falguni Nayar’s net worth.
Hailing from the state of Gujarat- a business hub where entrepreneurship is a legacy running in families, Nayar also came from a family of entrepreneurs. Maybe this is what set her off on her journey of quitting her high-profile job to set up a business in her areas of interest- beauty and the internet. But who exactly is Falguni Nayar and how did her online beauty start-up catapult her net worth to what it is today? Let’s find out.
Person of Interest: Falguni Nayar
Born and raised in Mumbai, the home of the Bombay Stock Exchange, Nayar grew up watching and learning the business from her parents. Her father was the owner of a small company that her mother also helped manage. Due to this, she was very familiar with how businesses work from a very young age. This was also probably what lit up a fire in her to be an entrepreneur and have a business of her own one day. It was a thirst that she would come to quench decades later.
After graduating with a Bachelor’s from Sydenham College of Commerce and Economics, she went on to get her postgraduate degree from IIM, Ahmedabad. The Indian Institute of Management is considered to be the most premier business school in the country, and Nayar’s future prospects were looking good because of that.
She first joined AF Ferguson and Co. as a consultant and later went on to join the Kotak Mahindra Group. During her 19-year spell at Kotak Mahindra, she climbed the corporate ladder to assume many high-ranking positions and was then appointed as its Managing Director.
However, Nayar had different plans. She decided to leave behind her corporate job and carve her own path. When she knew what it was that she had an interest in, all that was left to do was to take the first step of courage. Finally, this former investment banker had become an entrepreneur, especially at an age when most people are looking forward to their retirement. This was, of course, a testament to her work ethic and passion.
Nykaa the Unicorn Start-Up
Established in 2012 and named after the Sanskrit word for ‘actress’, Nykaa is a cosmetic e-commerce site that is catered to women – young adults to old. Nayar founded Nykaa at a time when most women were buying their beauty products and cosmetics at local stores. However, the online cosmetics site had a unique appeal of its own, with people being able to choose from thousands of brands in their own homes.
With time, Nykaa’s popularity only grew as it became a household name for Indian women because it catered perfectly to their particular needs. The fact that it was a woman-led business with women as its primary customers definitely contributed to its success. Nayar saw a potential market that had never been explored before in the country. This was because she, as a woman, understood the needs of other Indian women, and the entrepreneur in her knew how to capitalize on the same.
Today, Nykaa has expanded to many big Indian cities with physical stores that sell cosmetics. Along with this, the company has also released its own line of beauty products and even expanded into fashion and lifestyle. Since its establishment, the start-up had to compete with e-comm big wigs like Amazon and Flipkart. However, Nykaa held its own against them and even succeeded by bringing in huge profits.
Stock Market Debut
FSN E-Commerce Ventures is Nykaa’s parent company. As soon as it got listed on the stock exchange, trading has brought a surge in the shares of this company. The stock doubled in a short period of time to almost a whopping 14 billion USD. This is more than eleven times the amount that Nykaa was first valued at. Of all the unicorn debuts this year, Nykaa has been one of the most, if not the most, profitable stock listings. Nykaa projects a very positive growth rate for the coming years and 2025 may prove to be one of its best business years.
Net Worth
Falguni Nayar had a stake of almost 50% in her company. With the stock price surge, Falguni’s net worth tripled in a matter of days. Her current net worth stands at almost 7 billion USD, which makes her the second richest female billionaire of India after Savitri Jindal.
With the growth that Nykaa is to show for sure, Nayar’s net worth will also grow in the coming years. The stake is held by Nayar through different family trusts. Her children and husband also hold important positions and help in the managing and decision-making process of the company.
Conclusion
It is safe to say that the future of entrepreneurship in India, especially for women, is looking bright. As Nayar said in an interview, “Dare to dream,” the millions of ideas that aren’t even start-ups right now can certainly consider this an official thumbs-up to move forward to fulfill their dreams. Since its launch, Nykaa has only moved forward and the recent trends predict safe and continuous growth for the company. The start-up’s stellar performance in its first stock market listing drove in investors and traders in heaps.
Along with Nykaa, 33 other unicorn companies also made their market debuts with tech start-ups in the lead. Nykaa’s growth will most likely continue as predicted, which will, of course, steadily add to Falguni Nayar’s pecuniary worth. This success story makes us hope to see women leading and taking charge in realizing their entrepreneurial dreams.