In a significant leadership change, Nihir Parikh, the Chief Executive Officer of Nykaa Fashion, has resigned from his role, effective immediately. The announcement was made in a regulatory filing by FSN E-commerce Ventures Ltd, the parent company of Nykaa Fashion, on Thursday.
Resignation Due to Personal Commitments
According to the filing, Parikh stepped down on December 5, 2024, citing personal commitments. The company confirmed that he has been relieved from his duties as of the close of business hours on the same day. Despite stepping down as CEO, Parikh will remain actively involved with Nykaa Fashion as a member of its board of directors, ensuring his continued contribution to the brand’s strategic direction.
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Nykaa Fashion: A Growing Yet Loss-Making Vertical
Nykaa Fashion, the fashion-focused vertical of FSN E-commerce Ventures, currently contributes less than 10% to the parent company’s overall revenue. Unlike Nykaa’s beauty segment, which drives the bulk of its income, the fashion division is yet to achieve profitability. The financial disparity highlights the challenges the company faces in scaling its fashion business in a highly competitive market.
Nykaa reported a consolidated net profit of ₹12.97 crore and a revenue of ₹1,874 crore for the September 2024 quarter, underlining the dominance of its beauty segment in overall performance.
Leadership Transition: Abhijeet Dabas Takes Charge
To ensure continuity in leadership and growth, Nykaa has appointed Abhijeet Dabas as the Executive Vice President and Business Head of Fashion eCommerce. Dabas will be responsible for driving the online growth of Nykaa Fashion, expanding its global footprint, and forming strategic partnerships.
“Abhijeet will focus on building strategic alliances, including collaborations with leading retailers like Foot Locker and REVOLVE, to strengthen Nykaa’s position in the fashion e-commerce space,” the company said in a statement.
The Road Ahead for Nykaa Fashion
As Nykaa Fashion navigates this leadership change, it faces both challenges and opportunities. With Parikh’s continued involvement as a board member and Dabas’s appointment, the company aims to leverage strategic initiatives to expand its market presence and address the profitability gap in its fashion segment.
The focus on international partnerships and online growth signifies Nykaa’s intent to cement its position in the competitive fashion e-commerce market while sustaining its leadership in the beauty segment. Whether these moves will enable Nykaa Fashion to overcome its financial hurdles and grow its contribution to the company’s revenue remains to be seen.