Cosmetics-to-fashion retailer Nykaa has witnessed the resignation of six top-level executives, including Chief Marketing Officer (CMO) Shalini Raghavan, since April. In response to these key departures, Nykaa’s founder and CEO, Falguni Nayar, has stepped up to take direct oversight of the marketing function, considering its criticality for the company.
The other executives who have quit include Kingshuk Basu, a senior vice president (VP) for retail; Sumant Kasliwal, senior VP in the fashion unit; Aditya Sandhu from the business-to-business sales unit; VP Sachin Kataria from the e-commerce business; and Shantanu Prakash, VP for marketing and communications.
While Nykaa did not provide specific reasons for these departures, the company stated that leadership roles are being augmented to align with strategic realignment, cost rationalization, and the growing complexity of the business. The intense competition in the fast-growing sector has likely influenced these changes.
Nykaa, known for offering beauty products through its website and stores, faces competition from rivals Tata Group and Reliance in India’s rapidly expanding $16 billion beauty and personal care market.
In an investor presentation, Nykaa’s parent company, FSN E-Commerce Ventures Ltd, reported a 71.8% drop in net profit for the January-March 2023 quarter but an almost 50% rise in pre-tax profit. The presentation also indicated a 4% growth in core employees, or business executives, during that period, compared to higher growth rates in the previous two quarters.
Nykaa’s shares have faced challenges since its listing in November 2021, falling nearly 60% from their listing price.
Despite the executive reshuffling, Nykaa remains focused on its growth trajectory and will announce its June quarter results on August 11. The company has made strategic decisions to address the evolving market landscape and maintain its position as a prominent player in the beauty and personal care industry.
