How Falguni Nayar Transformed Nykaa Into a Billion-Dollar Success

Rajshree Upadhyaya | Business Remedies | March 13,2025 |  Falguni Nayar’s journey from a high-flying investment banker to the founder of Nykaa is a story of ambition, perseverance, and bold decision-making. Born on February 19, 1963, in Mumbai, India, she grew up in a Gujarati family with a strong business background. Her father ran a small bearings company, and watching him navigate the world of entrepreneurship instilled in her a deep understanding of business and the confidence to one day build something of her own. Her academic path led her to Sydenham College of Commerce and Economics, where she earned a degree in commerce, followed by an MBA in Finance from the Indian Institute of Management Ahmedabad in 1985.

Her corporate career began at A.F. Ferguson & Co., where she worked as a consultant before joining Kotak Mahindra Group in 1993. Over the next two decades, she played a key role in shaping the company’s investment banking arm, specializing in mergers and acquisitions and expanding the company’s reach to global financial hubs such as London and New York. In 2005, she was appointed as the Managing Director of Kotak Mahindra Capital, leading the firm’s institutional equities division. Despite reaching the pinnacle of success in her field, she felt an unfulfilled desire to create something of her own. In 2012, at the age of 50, she took the bold step of leaving her high-profile career to pursue entrepreneurship.

With $2 million of her own savings, she launched Nykaa, an e-commerce platform that would revolutionize the beauty and wellness industry in India. At the time, the Indian beauty market was highly fragmented, and access to quality products was limited. She saw an opportunity to bridge this gap by creating a platform that offered a wide range of global and Indian beauty brands, combined with expert advice and an effortless shopping experience. The name ‘Nykaa,’ derived from the Sanskrit word ‘nayaka,’ meaning ‘one in the spotlight,’ perfectly embodied her vision of empowering consumers to feel confident in their choices.

Under her leadership, Nykaa quickly gained traction, standing out from competitors with its curated offerings and strong customer-centric approach. By 2015, she expanded beyond the online space, opening physical retail stores and introducing Nykaa Fashion, further diversifying the brand’s portfolio. The company’s omnichannel strategy, combined with innovative marketing and influencer collaborations, positioned it as the go-to destination for beauty and fashion in India.

In 2020, Nykaa became India’s first woman-led unicorn startup, surpassing a valuation of $1 billion. A year later, the company made history with its initial public offering (IPO) in November 2021. The IPO was a resounding success, with Nykaa’s valuation soaring to nearly $13 billion on its listing day. This catapulted Falguni Nayar into the league of India’s richest self-made women, with her net worth crossing $6.5 billion.

Beyond financial success, she has always emphasized the importance of creating an impact. For her, success is not just measured by revenue or market valuation but by the lives influenced and opportunities created. Her story has inspired countless aspiring entrepreneurs, particularly women, proving that age, background, or industry experience should never be a barrier to pursuing one’s dreams.

Falguni Nayar’s personal and professional lives are deeply intertwined, and her family plays an active role in Nykaa’s growth. She is married to Sanjay Nayar, the CEO of Kohlberg Kravis Roberts India. Their twin children, Adwaita and Anchit, have taken leadership roles within the company. Adwaita heads Nykaa Fashion, and Anchit oversees the retail and e-commerce divisions.

Her contributions to business and entrepreneurship have earned her numerous accolades, including the title of ‘Businesswoman of the Year’ at the Economic Times Awards for Corporate Excellence in 2019 and a place in Forbes Asia’s ‘Asia’s Power Businesswoman 2019’ list. Her remarkable journey continues to inspire and redefine what it means to be a leader in the modern business world.

From a successful investment banker to the driving force behind India’s leading beauty and fashion retail platform, Falguni Nayar’s story is a testament to resilience, vision, and the courage to start anew. She has not only built an empire but has also reshaped an entire industry, proving that it is never too late to chase one’s passion and redefine success on one’s own terms.