Nykaa is shifting its growth focus to smaller Indian cities, betting on store networks and AI tools to build a $5 billion beauty business by FY30.

The company already covers India’s top 99 cities, so the next phase is less about entering new markets and more about going deeper into the ones it is already in.

Nykaa plans to grow its store count from 313 today to more than 600 by 2030, largely by opening two to five stores in each Tier-2 and Tier-3 town rather than chasing new geographies.

To do this, the company is running two different store formats. Nykaa On-Trend targets everyday shoppers in smaller cities, while Nykaa Luxe sticks to premium products in bigger urban centres.

Alongside the physical push, Nykaa is leaning on AI tools such as Skin Scan and a Virtual Skin Analyser to recreate the kind of product advice shoppers usually only get in person, which the company sees as one of the biggest gaps in beauty retail outside the metros.

Founder and CEO Falguni Nayar laid out the plan at the company’s Annual Investor Day on 18 June, framing it around what she called a defining decade for India’s lifestyle economy.

Nykaa wants to grow its total beauty consumer base from around 45 million today to 100 million by FY30, and ultimately serve 200 million people by FY36.

The company’s business to business arm, Superstore by Nykaa, is also part of this push.

It supplies smaller neighbourhood beauty retailers and has grown its GMV nearly fourfold over three years to Rs 1,187 crore, working with close to 493,000 registered retailers and more than 220 brands.

Nykaa closed FY26 with GMV of around Rs 15,000 crore, having doubled both GMV and revenue over the past three years while staying profitable.

The company’s next focus is wellness, which it views as a logical progression of its lifestyle and beauty business.

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