How To Build An On-Demand App Like Nykaa – Nykaa Business Model, Features & Cost

Nykaa – it is a popular name in on-demand ecommerce industry in India. It was initially focused on selling beauty and wellness products for women, but has slowly stepped into other markets such as fashion and grooming and wellness products for men. But why entrepreneurs are taking interest in Nykaa business model and building on-demand app like Nykaa? There is a simple reason:

Nykaa revenue model is highly successful and has managed to generate revenue of INR 18.6 crore in fiscal year 2020, with an annual income of INR 278 crore. The revenue and growth figures of Nykaa explain the increasing inclination of entrepreneurs to build an on-demand app like Nykaa.

If you are also interested in building an on-demand app like Nykaa, it is important to have a fair understanding of Nykaa business model. But before you dwell deeper into Nykaa business and revenue model, here is a brief history of the unicorn startup.

History Of Nykaa – Making It To The List Of Unicorn Startups

The idea of building an ecommerce app focused on beauty products germinated in the mind of its founder Falguni Nayar when she walked into a Sephora store and had a great user experience as the staff gave her personalized product suggestions and tips on using the products. She realized that there was a gap in the Indian market when it came to ecommerce apps dealing in beauty and wellness products for women.

With this business plan, Nykaa was founded in 2012 and received its first order on October 24, 2012. The ecommerce app tapped the right market by offering easy accessibility to a wide range of beauty products sourced from original Indian and international brands. Soon in 2015, Nykaa started opening its physical stores giving it an omni-channel presence. Since then Nykaa has grown to 13, 00, 000+ orders per month and selling approximately 104 products per minute.

Here is a brief summary of Nykaa’s journey from an on-demand startup to becoming Unicorn startup:

Nykaa Success Timeline

Nykaa Success Timeline

As of 2021, Nykaa has managed to build a loyal customer base with a rate of 72% repeat customers monthly. It has emerged as one of the most successful on-demand ecommerce apps and provides multiple services:

  • Nykaa: Deals in beauty and wellness products including body care, makeup, personal hygiene, etc.
  • Nykaa Man: An on-demand ecommerce app that deals exclusively in grooming products for men.
  • Nykaa Fashion: An on-demand ecommerce platform focused on branded and designer fashion products such as clothes, accessories, footwear, etc.
  • Nykaa Pro: An exclusive membership program that caters to salons, beauticians and makeup artists by providing special offers and educational content.
  • Nykaa Luxe: It deals in luxury products from premium brands.
  • Nykaa On-Trend Stores: They offer makeup and beauty products from trending brands along with a staff of professionals that guide customers in finding right product for their personality.


Nykaa Business Model – How Nykaa Works?

Nykaa follows an inventory-based business model. It enables the on-demand ecommerce giant to ensure the availability of quality products to its customers. Here is an insight into Nykaa business model to help you build your own on-demand app like Nykaa.

  • Nykaa purchases product directly from the brands or manufacturers and lists them on its website and ecommerce app.
  • The products are stored at its warehouses at different locations including Bangalore, New Delhi and Mumbai.
  • Customers can place orders at Nykaa’s website, Nykaa’s ecommerce app or offline stores.


The inventory based Nykaa business model ensures high profit margins for the online retailer. Since the products are sourced directly from the brands or manufacturers, Nykaa ensures product authenticity; thus earning customer trust for higher sales from returning customers.

Here is a comprehensive outline of Nykaa business model for a better understanding of how Nykaa operates:

Nykaa Business Model

Nykaa Business Model Outline

Nykaa business model focuses on a wide consumer base that can be summed up as:

  • Customers who are searching for brand specific or category specific beauty products.
  • Customers who want an online marketplace that can cater to all their beauty product needs.

Specific categories of Nykaa customers can be explained as:

  • Active Product Seekers: Customers in the age group 19-25 years who require advice on beauty products.
  • Busy Schedule Shoppers: Working customers in age group 27-45 years who know what products they need and have a busy schedule resulting in minimal time to shop.
  • Beauty Conscious: Customers of age group 25-45 years who are conscious about their beauty & style and spend time on browsing latest beauty trends and brands.
  • Brand Seekers: Customers who are more brand specific and have been exposed to international brands.

By venturing into Nykaa Man, Nykaa Fashion, Nykaa Pro and Nykaa Luxe, Nykaa business model has expanded to new consumer bases including –

  • Men looking for easy access to grooming products in between their busy schedule.
  • Customers looking for fashion products from wide range of brands and designers.
  • Professionals such as salons, beauticians and makeup artists looking for professional beauty products at discounted prices.
  • Customers looking for products from premium and luxury Indian and international brands.

How Does Nykaa Generate Revenue?

Nykaa revenue model includes multiple sources of income:

  • Product Sales: Nykaa earns revenue from sale of products of partner brands and its own product range.
  • Banner Advertisement: Nykaa earns income from banner advertisement of partner brands on its app, website and stores.
  • Commissions: Nykaa reported an income of INR 8.8 crore from commissions in the FY19.
  • Parallel Services: Nykaa has added additional revenue streams by offering parallel services such as Nykaa Man and Nykaa Fashion.


Why Is Nykaa Popular?

Nykaa is a focused ecommerce that is oriented towards providing authentic products at affordable price. The unique propositions that set Nykaa apart from other ecommerce apps are:

  • Nykaa has a wide range of products from global brands
  • Nykaa offers shipping services throughout India and over 95% of orders are delivered within 3-5 business days
  • Attractive referral programs have built a loyal consumer base for Nykaa
  • Nykaa has built its credibility by offering professional beauty advice and product recommendations
  • Multiple payment options via integrated secure payment gateways
  • Nykaa rewards program helps in earning repeat customers


How Can You Build Your Own On-Demand App Like Nykaa?

Owing to high revenue generation and projected growth of Nykaa, entrepreneurs are venturing into this niche by building online ordering platforms and ecommerce apps like Nykaa. If you are also looking to build an app like Nykaa, here are some factors you need to consider:

  • UI Design: The app design should be interactive and offer easy navigation between different product categories and brands.
  • Operating System: The ecommerce app should be built to offer seamless experience to customers irrespective of the operating system of their device.
  • Payment Gateway Integrations: Integrate multiple payment gateways to allow your ecommerce app users make payments as per their comfort.
  • Multiple Features & Tools: Make sure that your Nykaa like app is built with features such as Trending products showcase, seasonal lookbook, wishlist, etc.
  • Social Media Integration: Integrate different social media channels in your ecommerce app to enhance consumer interactions.
  • Customer Service Integration: When building your app like Nykaa, make sure to integrate customer service options such as Live Chat to allow users post their concerns and queries.
  • Inventory Management Tools: Nykaa business model is inventory-based and thus the ecommerce app should have inventory management tools to keep track of out of stock products.
  • User Management Tools: A power packed admin portal built in your ecommerce app will allow user management including new registrations, reward points, orders, etc.
  • Post Deployment Maintenance: After launching your app like Nykaa, ensure that the developer offers post deployment maintenance for smooth operations of the app.


The cost of building a Nykaa clone app may range from $15k-$90k depending upon the features, design, and location. However, you can switch to an affordable solution by choosing Code Brew Labs. You can choose a Nykaa clone model or get customized on-demand app like Nykaa with powerful features. With fully customizable ready-to-start solutions, we can build a revenue generating app like Nykaa for you.

Here’s why Code Brew Nykaa clone builder is the right solution for you:

  • Flexible customization of ready-to-use ordering platform
  • Feature loaded admin dashboard for full control of order management, delivery management, and user management
  • Easy onboarding of merchants and users
  • Multiple payment gateway integrations
  • Scalability as your business grows

Now is the right time to take your business online. Do you want to know more about unlimited feature options you can integrate in your on-demand app like Nykaa? Are you looking for high revenue generating app like Nykaa at affordable price? Let’s connect now!


Suggested Reads:

8 Wonderful Online Business Ideas. Number 6 is Absolutely Stunning.

Top 10 App Ideas To Make Money in 2021

How To Make Ecommerce App Like Amazon- Features, Business Model & Cost

An Extensive Guide to Create a Successful Online Marketplace Like Etsy

Direct To Consumer Business Model: Why Direct Selling Is Beneficial & How To Get Started?

Top Six eCommerce Marketing Strategies You Should Consider For Your Online Store

August 6, 2021



Recent Posts

Let’s Build Your Dream App!

Let’s Build Your Dream App!

Get In Touch
Join, Sell & Earn

Explore Our Partnership Program to Sell
Our Fully Customized Tech Solution To Your Clients.

Partner With Us!

Wait! Looking for Right Technology Partner For Your Business Growth?

It's Time To Convert Your Business Idea Into Success!

Get Free Consultation From Top Industry Experts:
I would like to keep it to myself