Nykaa is currently one of the biggest players in the online and offline retailing of fashion and cosmetics and has chalked up a decent customer base of 5 million+. However, the coronavirus pandemic and the lockdown has meant that the non-essential products in its catalogue cannot be sold or delivered. The company therefore has changed its product offering to include essential personal care and hygiene products like handwashes, masks and hand sanitizers under its private label till the lockdown is lifted.
Nykaa says it has implemented stringent sanitation practices across all its 8 warehouses as per guidelines issued by central and state authorities. These include social distancing by splitting the employees into different shifts.
The company has also implemented practices like frequent disinfection of facilities, temperature checks and screening of all employees. All employees need to mandatorily wear masks. As it has been done by most other online businesses, Nykaa also accepts only prepaid orders to ensure contactless delivery. The logistics partners have been advised accordingly.
Nykaa is currently servicing around 14,000 pin codes across the country and its website has been updated to reflect the new reality. Its warehouses are also according maximum priority to these essential products only. The TV channel is being used to air relevant quarantine conversations including interactions with experts across wellness and fitness.
The online retailer hopes it can recommence selling its main product lines soon.
This announcement from Nykaa comes nearly a month after it raised Rs 100 crore from Steadview Capital, an existing investor.
According to reports, this funding values the fashion retailer at $1.2 billion dollars, up from the previous valuation of $750 million when it raised Rs 100 crore from TPG growth.
Around the same time as this, Nykaa had temporarily suspended operations and informed vendors that there will be a delay in making outstanding payments to them.
Nykaa told vendors and suppliers that its cash flow and income is impacted, while expenses remain constant. The lockdown has already impacted business across industry, and this will have significant impact on the business cycle including cash conversion cycle, Nykaa said.