Nykaa vs Amazon: The Surprising Profit Leader in India’s E-commerce

Everyone thinks Amazon dominates every market.

But Nykaa might be more profitable in India.

Here’s why:

Nykaa focuses on beauty and personal care products.

In FY23, Nykaa’s revenue hit ₹5,174 Cr up 36.3% from ₹3,774 Cr in FY22.

But net profit fell by 49% to ₹21 Cr, showing rising costs.

Nykaa’s operating profit margin was 5.0%, with a net profit margin of 0.5%.

Amazon’s global revenue grew by 12% to $575 billion in 2023,

But India’s numbers are unclear.

Amazon’s North American operating income was $12.2 billion.

But India’s specific metrics aren’t disclosed.

Then,

1. Revenue Comparison

– Nykaa’s revenue is strong for its niche.
– Amazon’s global revenue overshadows Nykaa’s,

{but India’s figures are not specified}

2. Profitability Metrics

– Nykaa has a net profit margin of 0.5%.
– Amazon’s profitability in India is less transparent
but often involves lower margins.

3. Growth Trajectory

– Nykaa shows rapid growth with a CAGR of 45.2% over 5 yrs.
– Amazon’s mature market presence may limit its growth rate in India.


Nykaa shows promising revenue growth and modest profitability.

Amazon’s financial performance in India is unclear,

And its global strategy often prioritizes market share over profitability.

It is more profitable in India than Amazon.

—-


Thanks for reading.