India’s largest online beauty retailer, FSN E-Commerce Ventures Ltd., the parent company of Nykaa, is taking its first major step outside its home market. The Mumbai-based group is rolling out its Kay Beauty brand in the UK this week through Space NK, owned by Ulta Beauty Inc., Co-Founder and Executive Director Adwaita Nayar confirmed in an interview.

Developed in partnership with Bollywood actor Katrina Kaif in 2019, Kay Beauty marks Nykaa’s first overseas expansion, with ambitions that could extend to the US, the Middle East, and parts of Asia, Nayar said.

Nykaa-owned Kay Beauty makes its UK debut with Space NK

The UK launch will see Kay Beauty enter 13 Space NK stores and the retailer’s online platform. But FSN faces the challenge of building brand recognition in a crowded cosmetics and skincare market, competing against established players such as L’Oréal SA and Estée Lauder Cos. Inc.

Kay Beauty’s initial UK assortment includes everyday cosmetics designed for a wide range of skin tones, alongside signature products such as kohl — a traditional eyeliner-like formula popular in South Asia.

From Mumbai to Dubai and beyond

FSN has been steadily preparing for international expansion. In 2021, Nykaa staged one of India’s most successful IPOs, and since then, the company has expanded into overseas markets in the Middle East. It partnered with the UAE-based Apparel Group and opened a store in Dubai last year, while also establishing subsidiaries in Qatar and Oman.

Nykaa first tested international waters with a Dubai store opening

Back in India, Nykaa leveraged its early-mover advantage to dominate the online beauty retail space, fueled by rising purchasing power and the social media habits of Gen Z and millennial consumers. The domestic beauty and personal care market is projected to reach $34 billion by 2028, up from $21 billion in 2023, according to Redseer Strategy Consultants and Nykaa.

In-house brands drive growth

FSN’s international strategy relies heavily on its in-house portfolio, which includes Kay Beauty, Dot & Key, and Nykaa Cosmetics. Together, these brands generated approximately 21 billion rupees in gross merchandise value (GMV) as of March 31.

The company now aims to nearly triple GMV for its in-house labels to 60 billion rupees ($685 million) by March 2030, Nayar said.
Shares of FSN have risen nearly 40% this year, compared with a 4% gain in India’s benchmark Nifty 50 Index.

Nykaa is betting on in-house brands to fuel global ambitions

“We’d like to strive for profitability margins that some of the world’s best have, around the mid-teens to early-twenties,” Nayar said, without disclosing current margins.

The company anticipates strong sales during India’s upcoming festival season, beginning in September, supported by new product launches. It is also expanding its fashion vertical, including lingerie, as part of its strategy to diversify revenue streams.