More Buyers, Fewer Shareholders: The Nykaa Paradox Uncovered
Above the noise of boardroom buzz and user expansion, FSN E‑Commerce Ventures—the parent company of beauty and fashion giant Nykaa—finds itself facing a striking paradox: while its customer base has ballooned, its retail shareholder count has cratered.
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Customers Soaring, Shareholders Declining
In the past two years, Nykaa’s registered users have jumped from approximately 24 million at FY 2023’s close to over 42 million by FY 2024, marking a surge fueled by aggressive marketing, expansion of product lines, and enhanced e-commerce capabilities.
Yet the same period has witnessed a retail exodus from the company’s share registry. Small retail investors—those holding shares worth up to ₹200,000—have shrunk from 585,000 in June 2023 to 462,000 by the end of the March quarter, per BSE-listed shareholding data.
What’s Fueling the Exodus?
The departure of more than 120,000 retail investors suggests growing disenchantment among small stakeholders. With Nykaa’s stock price fluctuating and broader market volatility affecting consumer-tech stocks, many may be cashing out or shifting capital into safer or more profitable avenues.
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