Failure to acquire new consumers or do so in a cost-effective manner.
Dependency on the growth of the online commerce industry in India and its ability to effectively respond to changing user behavior on digital platforms.
Any harm to its brand or reputation.
Failure to identify and effectively respond to changing consumer preferences and spending patterns or changing beauty and fashion trends in a timely manner.
Dependency on certain brand vendors for a significant portion of its total GMV (Gross Merchandise Value).
Failure to retain existing consumers or maintain average order value levels.
Inability to retain its relationships with brands, manufacturers, distributors, and sellers, or attract new relationships.
Highly competitive industry.
The continuing impact of the outbreak of the COVID-19.
Changing regulations in India could lead to new compliance requirements that are uncertain.
Security breaches and cyber-attacks.
Dependency on the performance, reliability, and security of network and mobile infrastructure, third-party data center hosting facilities, and other third-party providers.
Purchase of inventory in anticipation of sales and failure to manage it effectively.
Seasonality of the business.
Failure by its suppliers or sellers to comply with product safety, intellectual property, or other laws.
Nykaa lacks control over the quality of the products offered by sellers and brands but may be subject to legal liabilities and reputational harm as a result of product defects, poor quality control, or authenticity issues.