FSN ECommerce, the parent of India-based fashion and beauty retailer Nykaa, has expanded its quick commerce service Nykaa Now to seven cities, including Mumbai, Delhi, and Bengaluru.

The company said Nykaa Now now operates over 50 rapid stores and delivers beauty products within 30 minutes to two hours.

By the end of the June quarter, Nykaa Now had completed over 1.3 million orders.

Nykaa’s annualized gross merchandise value across its platforms reached US$2 billion in Q1.

🔗 Source: The Economic Times

🧠 Food for thought

1️⃣ Specialized quick commerce players adapt delivery models for market-specific needs

Nykaa’s 30-minute to 2-hour delivery window for beauty products reflects a strategic adaptation that aligns with successful Indian e-commerce innovations from the past decade.

This approach contrasts with traditional quick commerce players who focus on 10-minute deliveries but follows a pattern established by earlier Indian e-commerce pioneers who modified global models for local conditions.

In 2010, Flipkart introduced Cash on Delivery, significantly increasing online shopping accessibility in a market with low credit card penetration1. Similarly, Amazon adapted its business model for India by incorporating CoD to build trust among consumers wary of online payments2.

Nykaa’s longer delivery window allows for better curation of beauty products, which require more careful handling than groceries, while still providing the convenience that drives quick commerce adoption.

This measured approach appears to be working, with the platform delivering over 1.3 million orders by the end of Q1 and achieving an annualized GMV of $2 billion across all platforms.

2️⃣ Premium beauty segment drives profitability in competitive e-commerce landscape

Nykaa’s focus on beauty products in quick commerce leverages its strongest performing segment, where the company has demonstrated pricing power and customer loyalty.

The beauty vertical accounts for 92% of Nykaa’s operating revenue3, and the company’s average order value reached ₹2,009, indicating growing consumer willingness to spend on beauty products4.

This premium positioning has delivered strong financial results. Nykaa’s beauty business achieved 26% GMV growth to ₹3,208 crore in Q1 FY264, while its net profit nearly tripled in Q4 2025 driven by sales of premium beauty brands5.