Good morning and a very warm welcome to everyone. Thank you for being with us today and taking the time to be here. I'm Shivani Oberoi and it is my absolute pleasure to welcome you to Nykaa's third Investor Annual Day. We are excited for this opportunity. Connect with our community of investors and analysts. Present for today's events are the following members from Nykaa: Falguni Nayar Executive Chairperson Managing Director and CEO, Anchit Nayar Executive Director and CEO Nykaa Beauty E-Commerce. Adwaita Nayar Executive Director Co-Founder Nykaa and CEO Nykaa Fashion P. Ganesh Chief Financial Officer Rajesh Uppalapati Chief Technology Officer Surendra Mehta as CHRO Nihir Parikh CEO NykaaFashion.com and CEO Nykaa Man Preeti Gupta Chief Business Officer Nykd Vishal Gupta CEO Nykaa Distribution Rozita Norouzi CEO Nysaa Suyash Saraf and Anisha Saraf Founder and CEO of Dot & Key. We have other management team here as well. Today's session will broadly be conducted in two parts from 9:30 A.M. to about 12:30 P.M. to 1:00 P.M. A management team will take you through following various business verticals and focus areas. Post that, we'll open up the session for questions. Before we start, I'd like to point out that some of the statements we make today will be forward-looking and are based on certain expectations and anticipated developments. These forward-looking statements are subject to inherent risk and the company therefore cannot guarantee that they will be realized. With that, I now want to introduce our first speaker, Anchit Nayar, ED and CEO, Nykaa Beauty. Anchit has played a pivotal role in making Nykaa India's leading omnichannel multi-brand retailer. He crafted Nykaa's multi-prong strategy of exclusive brand partnerships with the best global brands in beauty which has given Nykaa its sharp competitive edge. With that, over to you please Anchit. Okay, great. And a very, very good morning to everyone and thank you for joining us on this Friday morning. Thank you. So I have, I guess, the privilege of being the first to present today and as Rajesh, our CTO, said, I'm kind of the opening batsman and I think a cricket analogy is relevant given we're in the middle of the World Cup. So you know, I think without further ado I'll kick it off. Just to give you a sense of how this presentation will go today. It is going to be similar to how we like to do our retail business, which is this is going to be a very both an educational and an entertaining presentation. There will be a lot of content which we will show you, which will put you in the shoes of our customers and hopefully give you a sense of, you know, how is it that we truly communicate and build the kind of equity we have done over the years with our millions of loyal consumers across the country. Okay. Okay, great. So sorry, just like it's very low. Can I pull it up a bit? Great, great. Okay, thank you very much. So with that we'll kick it off. Check this. Good? Yeah. Okay, great. So I'll start with our first slide, which is to really convey the message to all of you who've been following Nykaa for the last few years since we went public that Nykaa is a lot more than just a beauty retail company. In fact, today Nykaa is India's beauty category creator and market builder. And I'll speak a little bit about the different businesses which we currently have within the beauty space. That shows you how we truly are almost. We cover pretty much the entire addressable market as well as different business models to address the beauty needs of the country. So first, of course is our Nykaa e-commerce business which is our oldest business. It has been around since 2013. We are today India's largest online beauty and personal care online retailer with over 30% market share. I think this number was recently even published in an HSBC report that was released a few days ago. Second, we have over 187 stores which are company owned and operated, which makes us also now the largest brick and mortar retailer for specialty beauty in India. Third, we have a business that's called Nykaa Global Store. Nykaa Global Store today is India's largest beauty brand importing and distributing business. I think sometimes this business has historically not been segregated out and maybe it's not spoken about enough. But in today's presentation, you'll see a lot more information about how we've built a very strong importing and distributing business that gives us a lot of leverage in terms of the kind of brands we're able to bring into the country and continues to create a very differentiated assortment on Nykaa in the India context. Fourth, of course is our own brands which many of you have learned about in the past from the various presentations we've done. We today have about 13 owned brands within the beauty vertical itself. 3 of these brands are now at an annual run rate revenue of over $20 million and we have 5 other brands which are also growing very rapidly. Fifth, we come to our eB2B business which is our Superstore business. That business is currently distributing to over 200,000 retailers across 1,000+ cities. These are 200,000 retailers who are actively engaged and transacting on the Superstore app. Sixth, we come to our ads business. As many of you know, we are a large advertising platform for a lot of brands in the country. As a specialty beauty platform, it is a very relevant audience to whom to advertise for beauty brands. As a result, they do see us as very core to their go-to-market and their digital marketing strategies in the country. That has become quite a substantial business over time. Next, I come to content and media. We are also today one of the largest content creators for this category in India. In the eyes of our consumers, we are an influencer of this category. We are somebody who our consumers watch to understand the trends that are emerging in the beauty industry, and they look to us to advise them. This is a very strong part of our overall strategy as we look to drive education and awareness, which is the best way to drive future consumption of the category. So as you can see, there are many aspects to our business and sometimes it gets all bunched into a definition of a retailer. But as you can see, we are much more than a retailer, not just to our brand partners but also to our consumers. So to summarize, the entire $30 billion BPC market online plus offline is totally addressable by us across our various business models. Second, we are handling end to end sourcing and distribution for global brands and domestic brands. Third, we are probably the only O+O model for this category at scale in India today. There are some retailers who are playing the offline game, there are some who are playing online. But at this scale in an O+O fashion, we don't have any real other retailer that comes to mind. Fourth, we are a specialized player with a very deep market understanding, almost 12 years of consumer data and understanding as a specialized player. This is all that we really do and we know our consumer and we know our category better than most. And finally, using our marketing initiatives through social media and influencers and other channels, off platform content strategies to really trend, to set trends and set the market for the years to come. So just to take you back to a slide which we feel is very important as you think, as you take a step back from quarterly numbers and performance and you think about really what is the opportunity that exists for Nykaa in India. And I think this slide summarizes it best. Today, India has some of the lowest BPC consumption in the world. As you can see, it's roughly about $15 per capita. In 2013, when we first launched Nykaa, that was sitting at only $6. Through a lot of the initiatives that Nykaa has done, by democratizing access to beauty for the Indian consumer, from our store rollouts, from our customer acquisition, from our education, we've managed to double the size of the per capita consumption of beauty in India. That being said, it is still the lowest, one of the lowest levels of beauty consumption in the world. This is what gets us most excited, this is what keeps us going. What we're most optimistic about is the potential for this number to grow dramatically from here. We believe that markets like Indonesia and Vietnam, which have similar GDP per capita, but much higher per capita spends on beauty, is a level which we can reach in the near term. Our projection and our understanding, and I think it's market consensus is that BPC spend in India on a per capita basis should reach about $50 by 2030. That being said, Nykaa's 25 million customers who are already transacting on our platforms are already spending close to $80+ per annum on the platform. So Nykaa's consumers are heavily engaged. They are, they are what we would say as the most sophisticated consumers. And also a lot of work has been done by Nykaa to get these consumers to this level of consumption. This is a big part of our strategy is to get customers to continue to increase their purchasing habits and their purchasing behavior. I think that, on the right hand side, you can see what are the four main key levers that we have that are going to help us to expand the market. Finally, market expansion is our responsibility. We, as a dominant player, as the beauty company, as the largest beauty company in India, have a responsibility to grow this market for our consumers and for our brand partners. I think there are four main key levers which will help us reach to that $50 per capita consumption value over the next several years. First is we believe that there is an opportunity to continue to grow the category with. What does that mean? It means that currently a majority of our revenue still comes from makeup and skin care as categories. But there are many other categories that are considered beauty and personal care categories where we have an ability to accelerate growth. These include categories such as fragrances, hair care, premium bath and body appliances, wellnesses, et cetera, wellness, etc. And by increasing the awareness and therefore the demand for these categories that in no way should lead to the cannibalization of our existing business. In makeup and skin care, these are purely additive categories to the consumer's cart. So by growing category width, we think we have the ability to increase the frequency of purchase as well as the average basket size of our consumers. Second is increasing the category depth. Category depth is something which we feel is something which we can achieve through a lot of education. Later in this deck you'll see some of the initiatives we've taken around what we call the stepification of beauty. How do we get consumers to buy more subcategories from within the same category? So for example, in skin care, if consumers are predominantly buying only a cleanser, how do we also get them to buy a moisturizer and a sunscreen and a serum? So that's what we call increasing of category depth. That should again help us to influence the frequency of purchase and the average basket size. Third is the premiumization initiatives that we are taking in India today. If BPC is small, premium beauty is an even smaller share within that. So very under indexed compared to global markets and a huge opportunity for a retail platform like ours. So what we mean by this is we have a very strong assortment of premium brands and we continue to onboard new brands in subsequent months. I think premiumizing what our consumers are buying through CRM and through other initiatives on platform will allow us to increase the ASP as well as the average order values of our consumers. Premiumization is a natural trend that occurs in any market. As consumers' affordability and disposable income levels increase and their discretionary spends rise, you will see a natural trend towards premiumization, especially in a category like beauty, which is an aspirational one. Fourth is events, experiences and retail. Leveraging our physical retail stores, not only for transactions and for footfalls, but really using our stores is a great way to introduce customers into the world of beauty through events and experiences. We host many, what we call small, smaller events in smaller towns like beauty bars and master classes, and then large-scale flagship events like Nykaa Land, which I think some of you had a chance to visit. This is a great way to continue to build awareness for this category in the country and should ultimately help with customer acquisition as well as the annual consumption value of our customers. This goes to show you that we are taking a very comprehensive approach to growing the market. There are many levers we have to pull and we have the ability to invest behind and this is the big focus for us in the coming years. Just to reiterate a couple of key metrics for you today. Nykaa is India's largest omnichannel beauty company, not just retailer and you know, a couple of high-level statistics. First, we have reached over $1 billion of omnichannel revenue and it's been about a 39% growth CAGR over the past five years. We have 187 stores across 68 cities and we have now built and opened 44 warehouses across the country. Through the years we have managed to service over 150 million orders across our online plus offline channels. We always say that in a country like India, technology is the greatest enabler. From inception we have used technology to build an incredibly sophisticated and powerful app. We would like to say it's, we believe it's world class, if not better. I think it reflects in some of these metrics that shows you just how engaged our customers have managed to become due to this sophisticated and powerful app that we've built. We get over 1 billion visits to the app annually. 25 million customers have shopped till date and 3 billion impressions are served per month on the app. Each of our visitors will visit the app 50 x in a year, which is over 4x in a month. As we know, the frequency of purchase is roughly 3.5x-4 x. So it goes to show you just how engaged our consumers are. They want to educate themselves, they want to learn more about the category and they see Nykaa's app and its content features and all of its education that we do as a great way to keep themselves up to date and also learning more so that as their affordability increases, as their requirements improve, you will start to see a lot of these visits turn into potential transactions. So this is a summary slide to tell you a little bit about how we look at where we were and in 2021, FY 2021, when of course we launched the IPO and we went public as a company where we are today in FY 2024 and our ambitions for FY 2028. I think the key call out for everybody here is that quality growth is the priority for us for the years to come. So to give you a sense, the BPC vertical at Nykaa was roughly INR 33.5 billion in terms of GMV in FY 2021 year end. Today, as you all know, in FY 2024 we disclosed that the number has more than doubled to INR 83.4 billion. The ambition is to grow the GMV in mid- to late 20s over the next several years which should be in line if not faster than industry growth despite already being the largest player within the BPC vertical. There is a commitment from us to continue to drive market beating growth and we think mid- to late 20s is a very, very healthy and ambitious growth number to take over the coming several years. In terms of our retail business, our retail business was roughly a INR 1.9 billion rupee business in FY21. Today it's touching almost INR 7 billion rupees in terms of absolute value of GMV delivered. The plan for the future of retail is that we think it will continue to remain. It will continue to account for roughly 8%-10% of our total GMV. However, it will continue to grow very rapidly. So if I look at FY21, we had about 77 stores. That number again has more than doubled to 187 stores today. And the plan is to take that to about 400+ stores by FY28. So, so again continue to double the footprint every couple of years and the retail business should grow in the 40%+ over the next several years. Now if I look at contribution margin, our contribution margin was at 22.7% in FY21. So a very healthy number for a predominantly a retail focused business. That number has improved quite significantly by almost 300 basis points to 25.5% in FY24. Our goal is that we want to keep this contribution margin in line with where it is today because we feel that yes, there is an ability for us to improve this number from here, but we are quite committed to reinvesting, to reinvesting that capital back into the growth of the business. Reason being that India is in its earliest innings of its beauty journey. It would be very short-sighted of us to not invest behind continuing to grow the market and taking our fair share of the revenue and the customer base that will exist in the coming years. In terms of customer metrics, our cumulative customer base was roughly 10 million. In FY 2021, that number has increased to 25 million in FY 2024. The plan is to continue to invest behind customer acquisition and also equally importantly in how we continue to drive improved retention as well as improved annual consumption value of our repeat customers over time, which will be a big lever of growth for us. As many of you know, we believe strongly in the quality of growth. What that means is we are not interested in acquiring customers for the sake of showing high MAUs or high DAUs, etc. Or high app install numbers. We feel that customer acquisition can be like a leaky bucket. If you acquire the wrong type of customer using the wrong incentive structures, you can end up losing that customer very easily and you end up reacquiring the same customer again and again, which is a very expensive and inefficient proposition. So we feel strongly that acquire the right customer the right way and there are millions of customers in India for us to still go after in that fashion. And that is our commitment to continue to drive quality growth and get the right type of customer who shows the same level of engagement and stickiness to the platform. That gives us the kind of repeat behavior and LTV to CACs that we have seen historically on the platform. Just a quick note on our category mix. Our category mix, as you can see, has evolved meaningfully since 2018. In 2018, color cosmetics was a large, very large meaningful part of our business. In fact, it could be fair. At the time we used to be called a cosmetics retailer and as you can see today that color cosmetics accounts for less than a third of our business. It's only 31% of our total category mix. So it goes to show you that we are truly a beauty retail platform. And it shows you how we have managed to build categories like skin care and hair care, bath and body and fragrance at an accelerated pace over the past few years. So this goes back to my earlier point, which is expanding the category width, which can only help improve the annual consumption values of our customers. And we think longer term in FY28 to look like a true beauty, a true beauty platform. In other more mature markets, we think that categories like skin care, hair care, makeup, and even fragrance should have very much more comparable market shares on the platform. And that is something which I think you will start to see play out. That doesn't mean that color cosmetics is going to grow slowly. It doesn't mean that skincare is going to grow slowly. All it means is that you will see much higher and much more rapid growth coming from categories such as fragrance and hair care today, which are relatively smaller on our platform compared to our other categories. So I just shared with you what has been our journey till date and where we see ourselves going from here. So let me just double click on a couple of things that have been important areas of investment for us over the past several years. And maybe we've not really gone into detail with you before so the first is there has been meaningful investments that have been made in our supply chain to deliver best in class service across India. As you can see from this slide, in FY21, we had about 18 warehouses across a handful of states, maybe three or four states in 2024. Today we have 44 warehouses across almost 12-13 states in the country. So today we can get you your Nykaa order from the time you place the order to the time it's delivered within 48 hours, pretty much anywhere you are in the country. So what is this investment in supply chain and warehousing done for us? Firstly, it's reduced our order to delivery timelines by almost 18%-20%. It has allowed us to reduce our fulfillment costs by 19% and reduced split shipments by 24%. So these have a benefit to us from a PNL perspective. Of course, from a fulfillment cost perspective, it has an excellent benefit for the consumer because they're able to get their packages almost 20% faster than they did historically and that number continues to improve with every subsequent quarter. And of course, reducing split shipments helps us to lower our cost, but also helps to reduce the inconvenience that can sometimes be caused to the consumer from a split shipment. So this has been a big area of investment for us in the past three years. I think now there is a lot of, there is a lot of talk of quick commerce and speed of delivery. So I'm very happy that we as a company have made the investment over the past several years and continue to invest behind improving our O2Ds and our speed of delivery to our consumers. The second thing which we focused a lot on is what we call the art of retailing and that is to always continue to improve the experience that we're delivering to the consumer on platform. So as you can see on the left side, where we used to, where we were in 2021, it was a lower level of sophistication on the app, not only in terms of imagery, but in terms of consumer journey, in terms of search and discovery, etc. There was very limited avenues for brand storytelling to be done and we did not have the unique capabilities of video content and animated content on brand pages, et cetera. These are just some of the examples of things that were missing. We've invested a lot behind that consumer journey and creating an environment that is engaging for the consumer as well as an environment which our brands can use to be able to do meaningful storytelling. As you can see on the right hand side, how that is reflecting from a consumer perspective in terms of the app experience. So larger assets, more brand imagery, video content, gamification of the app, personalization. We even have built an on-site property called Nykaa Play where all of the content we create across third party channels is all viewable and shoppable directly on our app as well. What's our ambition from here? We feel very good about how our app is now looking and how our consumers are able to interact with it, but there's always more to be done. I think the ambition over the next few years is what we call as personalization or even to an extent hyper personalization where we will be able to really tailor the consumer journey. Sorry, tailor the assortment that we show to the consumer basis, their browsing behavior and purchase behavior on our platform. Very, very strong capabilities. I won't spend too much time on that because our CTO will present more on the personalization initiatives later on today. This is, this is a very important piece of the puzzle and this is what we call as edutainment, something I spoke about in the beginning of the presentation which is how do we use content and how do we use content and entertainment to actually drive education. The biggest, we believe the biggest reason why India's BPC consumption is the lowest in the world, it's not affordability. We all know India's GDP per capita has increased meaningfully and will continue to do so. It's not availability. Now anywhere in India you can order beauty products online through Nykaa or you can visit a Nykaa store if you live in any of the 70 cities where we're present. Or you could even get access to beauty products from any of the 200,000 retailers which we're servicing through B2B. So I think we've democratized access. It's not an availability issue, it's purely an awareness issue. And the best way to drive awareness for the sophistication of beauty, the importance of beauty in consumers' lives is through content. So I always say picture speaks 1,000 words. So instead of me trying to explain why each of you in this room should have a four-step skincare routine, I'll let Soha Ali Khan explain that for you. I'm going to share with you my easiest skin care routine, CSMS. First obviously cleanse your face really gently. I use this cleanser from Kama Ayurveda. After cleansing I use my Estée Lauder serum. Truth be told, I personally didn't use serums until recently in my life. But now I'm aware of the fact that my skin needs that little extra love and hydration. After I gently pat in my serum, I like to top it up with this moisturizer which is by d'you and it is so lightweight. I just love how it feels on my skin. Last but definitely not the least, in fact, it's the most important step, sunscreen, and I use this one from Clinique because it leaves absolutely no white cast and I think it keeps my skin looking glowing and youthful. This is my 4-step CSMS routine. What's yours? Great. So I hope we all learned the importance of sunscreen in our lives and it should be used every day. So, you know, this is the kind of work which we do to really drive that education across, across the consumer base. This initiative that we called India skincare routine, CSMS Cleanse Serum moisturizer sunscreen we launched in June 2023 and we have invested across platforms, online, offline, in our stores, through events, through influencers, content creators, et cetera, et cetera, to really drive this message home. And as a result we managed to deliver a reach over 270 million. We've managed to expand the category width from 1.5 to 3.5. Today sunscreen and serums are some of the fastest growing and largest categories on our platform. We've also done the same thing with hair care and makeup. In hair care we call the routine as healthy hair habits and that consists of treat, wash and nourish. On the color cosmetics side we have a three-step routine called prep, set, cover. Sorry, prep, cover, set. Again it's a three-step routine. The point is to really take the consumer along a journey. We're not saying that Indian consumer needs to go from using just face wash to using a 10-step Korean skincare routine overnight. We're saying there are baby steps to be taken. This is a journey. Will India ever reach a place where our consumers are shopping or they have a 10-step skincare routine at night and use makeup multiple times in a day? Absolutely. There's no reason why, culturally, socioeconomically, there's no reason why that should not happen. But it's upon us to kickstart that journey and to bring them up along that consumption path. Now, because of all the work we've done around education, content, enhancing the supply chain, acquiring the right type of customers, building physical retail stores, building a world-class experience on the app through the work that we've done, working with our brand partners in terms of localizing their brand relevance and helping them with their go-to-market strategy in India. As a result, we have played a very pivotal role in actually bolstering growth for BPC brands across various cohorts. If you see FMCG brands like Lakmé and L'Oréals of the world and D2C brands like Minimalist and Dot & Key and Honasa and others, luxury brands like Estée Lauder, Dior, Aveda and global store brands like Charlotte Tilbury and Sol de Janeiro. We have delivered growth for everybody over the past several years and as a result, as we've shown you before, our business has grown more than 2x to 2.5x in the past three years. A lot of our brand partners have benefited from that growth. Now coming. To our physical retail business quickly. So today we have 187 stores. As you can see, this map is quite accurate. We cover the full length and breadth of India. I think what's unique about us as a physical retailer is we have a tremendous amount of consumer data that tells us exactly where our consumers live and those consumers what they are buying in terms of the assortment and the price point at which they're transacting. So we are able to be very, very specific and accurate in terms of where we open our stores and what assortment we merchandise in those stores. I think this kind of data is very rare in the physical retail industry and I think that's what's allowed us to build a successful retail business whereby our stores tend to break even within the first year, they tend to pay back within the first 2, 2.5 years and they continue to show very healthy revenue growth. As you can see, we have 4 different formats now. So we have different formats based on the different demographics which we're trying to address. We have a luxury format, we have a flagship format, we have an on-trend format and a kiosk format. So what is the role that retail plays beyond just being a point of sale for our brands? So retail actually, if done the right way and we've managed to do it in a very unique way given that we come from a digital-first background, is we've actually managed to really integrate our offline channel very comprehensively with our online business. So what are some of the benefits that we see from having a true O+O go-to-market strategy? First is our O+O customers tend to transact at an annual consumption value of 4-5 times higher than that of shoppers who are only transacting in either e-commerce or only in physical retail. Their frequency of purchase also tends to be 3-5 times higher. So it's a very valuable customer which we manage to acquire through our physical retail stores. And then because of this ability to seamlessly transition them onto online for replenishment, Journeys is allowing us to really maximize the annual consumption value from our customers. Second is events and experiences. As I spoke about in the past, there is a lot of education that needs to be done for this category. A lot of it can be done through online, as I showed you some of the videos earlier. But there is a very tactile element to beauty as a category. And therefore our physical stores, especially in smaller towns, serve as an excellent venue for us to physically engage with our consumers and have them to actually come and experience the products, experience the brands and learn more about this category. So we host something called masterclasses in beauty bars. We did 50 masterclasses in this past one year itself and 14 beauty bars. So almost one a month across cities like Chandigarh, Guwahati, Siliguri, etc. And then of course, all of these events which we do on ground, we amplify through our online channels and have managed to deliver 65 million impressions of these on ground events through our online channels. Second is consumer technology. You know, we don't believe in having tools in the store just for the sake of, just for the sake of having it. We really want the technology in stores to truly add value to the consumer. And so we did invest a lot of time and energy in finding the right solution in our stores. And we have launched a skin analyzer tool which should help our beauty advisors to really give the right, the right advice to our consumers in store about the kind of skin care products they should be buying. And this has gone live across a few of our luxury stores already and you'll see that continue to expand over the coming years. Third is services. I think services is incredibly important. Consumers visit stores not only to buy product, but to also engage and to be trained and to receive services. And I think we have done over a million makeovers and skincare consultations across our 187 stores till date, which is quite a large number. Finally, in terms of how does O+O come together in the store? We have something called a store locator in the app. So if you have our app, we can based on your pin code advise you where the closest store is as well as what is the product that's available for sale in that store. Second, hyperlocal delivery. If you live close to a store and you order something that is present in the store, we can dispatch the order to you from the store directly. Based on your online cart, things that you've abandoned, things that you've not checked out. We're able to nudge you into our physical stores to experiment and try those products as well. And finally, endless aisle, which means if something is unavailable in the store, our beauty advisors who are very well trained can help you to check out online while still in the store. Now, coming to the third main business within the beauty segment is our Nykaa Global Store. As I said in the beginning of this presentation, I would give you some more context on this business today. Nykaa Global Store is India's largest beauty brand importer and distributor business. The GMV in FY21 was, I mean if we rebase it to 100 today we're at 5x where we were in FY21 and the plan is to get to 15x by FY28. So very, very strong ambitions here. But this is a very fast growing part of our business. Roughly the growth has been about 50% CAGR over the past few years. So you can tell faster than overall platform growth. And it's driven by existing brands that we were distributing already as well as new brands which we've won the mandate for. And you can see that we had about 19 brands in this portfolio in FY21. That number has jumped to 39 brands today and we have a target to get to about 80-100 brands by FY28. Some of the key launches in FY24, I'm sure you saw some of them. Fenty Beauty, which is the world's largest celebrity color cosmetics brand, which is owned by Rihanna, the celebrity singer as well as the LVMH group. Second was Urban Decay. Urban Decay is a brand that is owned by L'Oréal and they trusted us with the mandate to actually import and distribute this brand exclusively in the country. ColourPop, AHC, Dr. Barbara Sturm are some other names of high profile brands which we launched in FY24. So if I look, if I take you to the next part of this slide in terms of the brand partners in FY21, our import model, our Nykaa Global Store was mostly being leveraged by what we call as independent niche brands such as Huda, Pixi, TONYMOLY, who were standalone brands and not part of larger beauty companies. And the distribution model was predominantly that we would retail those brands through Nykaa.com and our Nykaa retail stores. But I think if I look at where we are today in FY24 today, not only do we work with strong independent global brands, but we are also being trusted by some of the largest global beauty companies to take on the mandate for the importing and distributing of their brands as well. So for example L'Oréal, the Puig Group, Amorepacific, Unilever have all trusted us to import, distribute and manage their brands end to end in the country. We are also able to now distribute these brands across not only Nykaa's own channels, but also through third-party e-commerce as well as through our B2B business Superstore. So this is a big advantage and a big benefit for a lot more mass and masstige brands who look for slightly wider distribution than just Nykaa when deciding their go-to-market strategy. And in terms of the future plan, I think we continue to unlock a lot of key brands. In fact, I was in the US last week meeting a lot of brand partners and I think there is tremendous interest. As I've mentioned in the past, with growth slowing in China, a lot of brands are looking to India now for to make up for that loss of growth. And the time is right, the time is now to come into India and a lot of them who don't have the ability to do this on their own are looking for partners like Nykaa to bring them into the market. So I think you continue to see a lot of lot of interesting brands we launch in the coming years. And we have also now strengthened our distribution model whereby we can distribute brands not only across our channels and third-party channels, but also we are offering the ability to do brand run brand boutiques, do brand clinics, spas, and run their brand websites for them as well. So really end-to-end services and distribution capabilities for our brand partners. So just to give you a pictorial representation of how the global store business has grown over the years, as you can see in 2021 it was a handful of brands, 2024, already that number has increased meaningfully. And I'll just allow you to take in some of these brand names. But for those of you who track the beauty industry, these are some of the best performing, most valuable and trending brands that currently exist in the world. So we are also slightly selective in the brands which we choose to take into the Nykaa Global Store. Because as you can see from the right hand side, this is a 360 degree approach to servicing the brand partners. In a way we become the brand proxy in India. So we will handle end to end for these brands in the country whereby they don't have to have an office, they don't have to have employees in the country. And so it is a lot of work for us and as a result we are a little bit selective in terms of the brands that we choose to work with, those that we do believe have a right to win in the India market. So you can see by 2028 there are thousands of brands who are still yet to access the India market and this is a big opportunity for this business. Sam. So I just, the video I just showed you is the kind of work, the kind of content which we create for, on behalf of our Nykaa Global Store partners. It is content that is localized, it's content that's relevant and it's just an example of how we really do end-to-end servicing for these Global Store partners. Now I just want to show you one more video. I hope you're enjoying this, this very entertaining presentation in terms of at least the content that's being shown. But I thought it's worthwhile for you to hear directly from, I would say probably one of the biggest beauty brands in the world. This is Charlotte Tilbury and the lady on the screen is of course Charlotte Tilbury herself, the founder of the brand. Charlotte Tilbury is one of the biggest makeup brands now globally and it's a brand which trusted us to become the importer and exclusive retailer for the brand during the COVID years actually. And the brand has only grown from strength to strength. Here's a short video that I think will help you to understand what it is that we do for our global store partners. Namaste darlings. I'm Charlotte Tilbury, makeup artist and founder of Charlotte Tilbury. So excited to be launching exclusively in. India with the incredible Nykaa. It's so. Great to be doing this with Nykaa and we really believe that we will. Together be an number one brand and do all of these gorgeous beauties. Same with the same. Yeah, so I think the point of the video was to show you just how we can do pretty much everything for the brand. There are very few players in the market today who can deliver this level of excellence in terms of online offline eventing experiences, understanding the local consumer and creating relevant go to market strategies and also finally importantly, delivering revenue to these brands because of course we have the largest base of beauty shopping, beauty enthusiasts and beauty shoppers on our platform as well. Now finally, I just wanted to spend a minute on the future and you know, what are some of the key trends and what is the outlook for the beauty market in the coming years from a trend perspective? So first I'll just talk quickly on color cosmetics. Three key trends. One, there has of course been the rise of D2C brands in color cosmetics. I think this was a big trend in skincare over the past few years. But now this has become a bigger trend in color cosmetics over the past 18 months -24 months. And you are seeing historically brands who were in the skincare space like Mamaearth and Plum and others getting into color cosmetics. Second is you're seeing a massification and a premiumization happening simultaneously. And you're seeing a lot of brands launching slightly lower priced products like Sugar Pop and Blue Heaven and Swiss Beauty. And then you're seeing a lot of demand on the premium end like the Charlotte Tilbury and other brands in the world. So there is a bit of a divergence that's happened in the last 12 months. Look for us as a retailer, you know, it's okay, it's, you know, we benefit from on both ends of the spectrum. We are finally a retailer with 3,000+ brands. And where the consumer demand goes, we have the ability to meet that demand. Third is what's most exciting is we're seeing green shoots in very unique subcategories that shows you that the Indian consumer is evolving and they are moving beyond the very basic requirements into much more sophisticated requirements. And we like to believe that is in some small part driven by a lot of the education and content which we've done and created over the past several years. So categories like lip gloss, compact foundation, which are sophisticated categories which historically have not been very large, have become some of the fastest growing categories in our platform and shows you how Indian consumers are starting to look slightly more similar in terms of their purchase behavior to other global markets. If I look at skincare, Derma Cosmetics has been a big trend. So brands that are dermatology driven or dermat approved have really picked up active ingredients. So ingredients like niacinamide, retinol, etc., have become key ingredients. And you're seeing a large growth in terms of the search terms. So how many people are searching for these ingredients has increased. And again, it's quite; this is where education is important because it is actually quite. It is important for a consumer to know which ingredient they're applying onto their skin. Niacinamide, retinol, vitamin C, these are all extremely potent ingredients. So Nykaa sees a responsibility to also really guide and advise the consumers as they discover the world of active ingredient skin care. Third, I already spoke about the growth of sunscreen and serum within hair care. We're seeing very interesting trends as well. You're seeing a widening of the category in 2012, 2013. When we first launched, it was very basic. It was predominantly shampoos and some conditioners were being sold. Today in 2024, not only are we selling shampoos and conditioners, but also categories like treatment masks and hair serums. We think that trend will continue in the coming years. The biggest trend in hair care is actually the skinification of hair. So active ingredients which became very important in skin care are now also becoming very important in hair care. We think we'll continue to see the skinification of hair, which should bode well for us because historically hair care has been seen as a personal care category. With the skinification of hair, it's going to become a much more beauty focused category and retailers like us should benefit from that. Finally, the last video I wanted to show you is an example of how we set trends in the market, how we explain trends to our consumers, and as I said, how we really are an influencer in the world of beauty. This i the last video I have. Please enjoy. Did you miss me? Because I, Sufi Motiwala, sure did miss you. You're watching Nykaa's Trend cast where Nykaa forecasts all the latest trends and. I, your Gossip Girl, breaks them down for you. It's giving dewy, it's giving melted, it's. Giving sun chipped glazed skin and nails. Peek-a-boo. Because glazed blush is our new bestie. This trend amps up your blush game with shiny, glossy, balmy textures to give you that wet and hydrated glow. So glow on, baby. I'm the queen of blushes. So let me tell you exactly what you need. On top of the list, we have the viral Pixi On the Glow Cream Blush. Then we have the Nudestix Nudies Blush. All over for that sun-kissed glazed look. Katrina approved. Kay Beauty Crème Blush makes it next the list. And lastly, we have Charlotte Tilbury's viral beauty blush wand. These divas are all that you need to look like one. This trend's on my face, so it. Has to be a 10 out of 10. Try this one out and be ready to be glazed and amazed. Stay tuned for more beauty obsessions. Only on Nykaa's Trendcast. See you later. Yeah. So this is, this is incredibly enjoyable for a lot of our consumers. And this is really how we like to drive education in an entertaining fashion. Finally, I just wanted to, as I wrap up the presentation, just say a big thank you to, you know, just want to come back to really who, you know, who are we here doing this business for? It is for our partners, our brand partners, without whom we would not be in this business. Our job as a retailer is to really help take care of our brands who are listed on our platform, who choose to work with us in a manner that is in a very intimate fashion. In fact, the relationship between a retailer and a brand in most markets is a very, very intimate one. I feel sometimes in India, it becomes a transactional relationship. So for Nykaa, it's all about how do we build relationships and really build trust amongst each other so that we can help each other deliver our business objectives, which are a lot more than just revenue, which of course we deliver for them, but also how do we help them build brand equity not for today, not for tomorrow, but for 10 years, 15 years, 20 years down the line. So just some examples of the kind of trust and faith our brand partners have put in us. We have obviously senior management from some of the biggest consumer companies and beauty companies in the world who have come to spend time with us to learn about us, to learn about how we have managed to build such a unique retail model which they've not seen anywhere else in the world, and how we managed to have such a good understanding of our consumer and how we've helped them to really localize and bring their brands alive in the country. I think these are some of the reasons why they continue to trust us and continue to partner with us the way they have. And finally, of course, to all of our customers as well. You know, we every day we really wake up thinking about how could we serve them better. I think we want to just thank them for their constant support and encouragement as well. With that, that's the end of my presentation. Thank you very much for the time, and I will hand it over back to Shivani. Thank you very much. Anchit. It's inspiring to see how far we've come already from 2021. Our ambition for 2028 isn't only limited to Nykaa, but also boosting the ecosystem as well as the industry. I'd now like to call upon Falguni Nayar, Executive Chairperson, Managing Director and Chief Executive Officer. Falguni Nayar founded Nykaa in 2012 with the vision of building a multi brand omnichannel beauty focused retail business within a decade and entry into other businesses like Nykaa Fashion, Nykaa Superstore and Nykaa Man. Under Falguni's leadership we've emerged as India's leading beauty retailer playing a critical role in developing the market and further being recognized on TIME100 Most Influential Companies list. May I now please request you to join us here Falguni and take us through our own brands across fashion and beauty. Hi. Thank you everyone. My own presentation I'm doing a little later in the event flow I think. Here, I'm right now here on behalf of Adwaita who now leads beauty brands business as well as fashion brands business. Unfortunately she's down with viral and couldn't be here today. So I'll present on her behalf. I feel I may not do as much justice to it as she would have but I'll try my best. So just talking about it that we are extremely proud of, we always called our own brands not private labels and though casually internally we used to refer to them which was injustice to the brands. But over the years we built a series of brands which we are very proud of and many of these are organically built and some are acquisitions. But we are proud today to sit on a bunch of brands both in beauty and fashion, and I'll take you through some of those. So our vision was to build a Nykaa house of brands that is founded on quality, trust, and focus on enriching the customer experience through the trendiest and the high-quality products. Our guiding principles for these were to be very consumer-centric in our proposition. We always solve for customer needs and wants and build brands on consumer love. If I give you one of the first examples when we started the business in 2012, just as a simple consumer, I was aware that nail polishes were very hard to get. And all of us who went to the beauty parlour didn't see a full collection on offer in terms of range. Nykaa launched its first nail polish in 2013 to fill that gap. The entire journey of some of our early launches began to fill those market gaps. We used to market those days Bath & Body Works in Victoria's Secret. Victoria's Secret wrote to us that they are not present in India. We felt that if a brand was not legally present in India we didn't want to sell the products because they could be fake. So we actually withdrew those products even in spite of a lot of consumer demand. We introduced Wanderlust which was Nykaa's bath and body range to fill the gap and the needs of the consumer in the bath and body space. So this is how Nykaa's own labels came about in the early days and the journey has since continued. We are also building for long term endurance. Most of our actions will be very strategic and sustainable for the long period of time. I think we are creating brands that stand for something, that stand for delivering a certain consumer proposition rather than being copycat. Me too. Brands that just copy whatever is the latest trend. So many of our brands are thought through. Actually we are very fortunate and personally me, I've been very fortunate to be inspired by many of the world's biggest beauty companies. And many of my team members are also privy to that. Where we are meeting companies like Estée Lauder, Amorepacific, chairman and CEOs of these companies and understanding their brand philosophies on what finally matters well for brands is what is the kind of customer retention you are achieving for brands? Because without that, you can keep going to the next customer, but finally customers will run out and your brands won't have a place to go. So we are really building it for long-term endurance. The brands that we are building and high quality always we will not launch products unless they are of the highest quality. I do believe that with all of the responsibilities that the brands carry for consumer, you know, consumer health, I think it's very important that we don't compromise on quality for sake of price and profitability. So moving on. So what we are doing is today what we are doing is that we are supercharging most of our scaled up brands. We have had many, I mean we have a bunch of brands like you can, if you look at and some of those are spelled out later. But if you look at beauty we have Nykaa and Kay Beauty both at very high scale. Similarly in skin now we had invested in Dot & Key so that's part of our range of brands and we have many others like Nykaa Naturals we also have SkinRx. So in each of the subcategories in fragrance we have Nykaa Perfumery range of brands. Also in case of bath and body we have Wanderlust. So in each of these we already have scaled up brands. So what we are currently doing is we are supercharging the scale up of these brands and we want to make sure that each of these brands achieve the top five space in each of their sub categories or subcategories for each of these scaled up brands. Investing also in high-potential segments through our up-and-coming brands, we are always aware of what are the upcoming segments and we want to make sure that we service those. And this is being done, for example, in case of athleisure, which is coming up in the fashion segment, we are servicing it through three brands. So sometimes if an upcoming space or category seen, we may service it through more than one brand. And because of our bunch of brands that we carry in beauty and fashion, we are able to do that. We're also focusing on large subcategories like derma skincare and also particular niches like Ayurveda where we now have Nyveda as a brand that we want to scale. We are also expanding omnichannel because we do believe that brands, once they get a certain scale, must go beyond D2C. This is being done aggressively but sustainably. What that means is that we are very conscious that, you know, we must monitor not just the primary but the secondary sale is very important to monitor and build these in a way that we don't regret the push and then not being able to sustain the consumer demand. This is being done not just on Nykaa platform of our, you know, B2B platform, but also beyond that. We continue to also be present in all of our beauty stores for most of the beauty brands there in each of our 187 stores including the kiosk. Also outside of that we are trying to grow through GT/MT where we are now in more than 8,000+ doors. This will only expand. Also acquiring the right customers and driving loyalty through brand love is very important to us. And what this will manifest is in terms of investing in brand building, targeting carefully curated customer cohorts which aim at high retention. So this is just in summary, I think we are really proud that now our beauty GMV of all the beauty owned brands is touching more than INR 1,000 crore. We are at INR 1,095 crore of GMV in 2024 and they account for about 13.1% of our overall beauty GMV. So really proud of being able to keep up with the retailer, so to speak. And if you look at the channel mix, it's quite varied. Not just the online on Nykaa.com but Nykaa stores contribute now 13.5% is on Nykaa.com 13% in our stores. As much as 20% of our sales comes from GT/MT. I think when the brand succeed in the broader world of GT/MT, I do believe that that means there's true demand pull also. Beyond that we are also going into certain other platforms selectively. About 13% of our sales are coming from other platforms. So if you look at BPC, you know, Dot & Key has been an acquisition that we are really proud of and today we have Suyash and Anisha who will talk about the brand more later. So I won't spend too much time on that. But we are really proud that as far as Dot & Key is concerned, it's right up ahead with you know, revenue momentum of almost INR 6 billion in terms of current run rate. Following that is Nykaa Cosmetics which is also at INR 3 billion plus and K Beauty at INR 1.5 billion revenue run rate. In fashion we have two brands, both 20Dresses and Nykd which have now reached that run rate. And then there are many upcoming brands where which we are currently nurturing and growing and we are very confident that many of them will also continue to progress upward. So these are the bunch of brands that we own. I think amongst these three them is only one where we don't have a, we have 18% stake and not controlling stake. Most of the others are either 100% owned or in fact all of the others are 100% owned by the company. So what is our right to win? So I think some of the what we believe is that we have strong brands with much consumer love. Almost nine brands across five key categories. And each of these, each of these five brands have top 10 category shares. So we do believe that we have the right bunch of brands that we'll continue to nurture and grow through additional distribution and marketing and customer acquisition both on our platform as well as external platforms. And the distribution reach that we can provide to our brands is very unique. I mean 25 million customers that are present on Nykaa.com strong and growing retail presence at currently at 187 locations in 68 cities. Which is. You heard all this in Anchit's presentation. He's done a lot of job for me because you know our stores will go to, they'll double and so will our presence for our private label be available in those stores. 40+ EBOs across cities. And we also have very aggressive plans for expanding EBOs and access to 195,000 retailers through our B2B network in about more than 1,000 cities. So this is the entire captive distribution that is available to our brands and we are also investing in being an innovation powerhouse. Today we have 50+ dedicated innovation team members and we've launched more than 100+ products in financial year 2024 alone. So I think this talks about a little bit about the history of when the brands were started and how they have scaled. So Nykaa Cosmetics was one of the first brands started in 2015. I think their sales and contribution has to be seen in light of the fact that Nykaa Cosmetics, because it contains the word Nykaa, we have only sold on Nykaa platforms and it's never been sold outside. So to certain extent, Nykaa Cosmetics has been more of an internal brand. K-Beauty and many of the other brands like Dot & Key, Earth Rhythm, many of them are able to launch on multiple platforms. In terms of scaling the brands, early brands at the original core, I mean, we started with makeup because that was our key strength, as you saw. But very soon we became aware of the skincare as a growing category and we had Nykaa Naturals as a category representation then. But around 2020, 21 is when we decided to invest both in Dot & Key and Earth Rhythm to fill the gap in skin. Today's skin is the largest growing segment and I do believe that it'll continue to grow at an accelerated pace. And as a result, this whole bunch of brands that we have between Nykaa Naturals, SKINRX as well as Dot & Key and Earth Rhythm will grow very rapidly. So will makeup. In fact, makeup is a harder category to crack for D2C brands. The fact that Nykaa has two very strong brands which rank in top five is a very big asset. Ayurveda. I have big hopes for Ayurveda, including taking it global. But it needs, you know, lot of education and investment kind of pace at which, you know, slow pace at which Forest Essentials and Kama Ayurveda have grown. That kind of approach is necessary because it's a very specialist product range, little more premium pricing and has to be built carefully and cautiously with the right customers. Wanderlust is a very promising category. It plays in a category which are very large Bath & Body Works and internationally this category is very large. So we do believe our brand has done very well and we are really investing in scaling both Wanderlust and Perfumery because these two categories are growing exponentially. Anchit also mentioned about that. These are some of the recent blockbuster innovations. We are very innovation led and you can see here that some of the recent launches have been quite blockbuster. I think if you look at pH lip gloss that we launched for Nykaa Cosmetics, it was number one product in the lip gloss category, number three in the lip category, 20 million+ organic online reach and 1.2 surge in overall brand search. Volumes. Similarly, K Beauty launched to lip oil sold out on day one. 5 million+ organic reach from Katrina Kaif post as well as overall 20 million online reach and on Nykaa Naturals Rosemary is a big popular ingredient. Our rosemary shampoo is in the top 5 and again more than 10 million+ reach is delivered through that. Talking a little bit about fashion, what is our right to win in fashion? So again in fashion we believe we have some strong brands. Nykd is the number one lingerie brand on our platform and it has strong presence in and you again hear more about Nykd through Preeti who's making a deep presentation later. So again I won't jump too much into it but it's a fantastic brand doing really well in its category and we'll talk more about it. Also we have a strong presence in western wear at 10% of category share on our platform and there are five brands which are consistently in the top 30 brands on the platform. So again we think that our platform gives advantage to our fashion brands and they serve a purpose for the platform and platform serves a purpose for the. I mean purpose for them. So it's kind of complementary. And again each of these brands we are going to grow through diverse distribution. So obviously the platform gives immediate reach of 6 million transacting customers to each of our fashion brands and there is a significant sales volume from on and from on platform sales but also platform sales offline and in other D2C websites. So I think we are also starting some amount of EBOs for some of the selective brands. So like Nykd is starting some EBOs and some of the brands like western wear brands are present across 1,500+ GT doors. Sorry, Nykd is present across 1,500+ GT doors and Western Wear brand is present across about 100 MBOs in, you know, in the more far off market. So with this we do believe that we have a differentiated assortment mix. Top brands considered a different design differentiator for the platform. And we are also leveraging key platform insights to curate a winning assortment for the customers. So this is the summary of the fashion brands. You can see here that Women's Western Wear 20Dresses was acquired in 2020 and we've grown it since then and it's also entered athleisure and accessories category. Similarly, RSVP was an extension of 20Dresses for evening wear. Nykd was launched in the lingerie category in 2021 and Nykd is also now extended to athleisure. RSVP is extended to bags and footwear. India's first Indian wear brand Gajra Gang was launched in 2022. We also acquired Pipa Bella, the jewelry business, in 2022, and that has extended. The team also launched Kica, which is for activewear, Mixt, a label launched in 2023 for IYKYK. It's a Gen Z label in western wear, and Likha and Nyri are the Indian wear solution. Likha's more affordable Indian wear brand, and Nyri is the saree collection, and Kica was another brand that we acquired, which is mainly focused on performance athleisure, and really proud of how that's also growing. Finally, Azai is our accessory and jewelry brand that we have launched in 2023. So these are just some of the excitement that brands create through brand collaboration. So you can see RSVP with Lisa Mishra, Gajra Gang with Rishi and Vibhuti Collection RSVP with Nikita Mhaisalkar as well as Gajra Gang with Mahima Mahajan. All of them very popular and very popular among the customers and were sold out. I think I'll just, yeah I'll just talk briefly about Dot & Key. So Dot & Key like I said was an acquisition that we did two years ago and we're really happy how it's performing very well in some of the core categories like moisturizers as well as you know, underarm roll ons and Sunstick in Nykaa Cosmetics. Again like we said it's a makeup brand with a full collection of makeup. Makeup range. Kay Beauty is our joint venture with Katrina Kaif that is managed by us. But Katrina is you know as a joint owner a big support in terms of what she brings on the marketing front. Nykaa Perfumery has you know a range of other brands like Wanderlust for bath and body. Again new packaging launches which we are growing, you know currently in terms of the Ayurveda space SkinRx which is you know the science based skincare brand as well as the Perfumery. This is the Nykd where again I said we'll talk more later. 20Dresses. I just show some of the imageries for you to relate to the brands. This is Ghein. Like Ghein is mostly online only brands. So in fashion we do have some brands which are only for the website and mainly to facilitate sales on the website. Ghein is what's one such example Mixt also similar with that I'll hand over back to Shivani. Thank you so much, Falguni. It does sound like a large part of our own brand strategy. Started from seeing white spaces in the market and then really trying to find out how to best give consumers what they really need. As we sort of double click into Dot & Key. Who better to hear it from than the very passionate founders of Dot & Key? Could I please request Anisha Saraf to take us from here? Hello everyone, I'm Suyash Saraf. I'm Anisha Saraf and we are. The founders of Dot & Key. We started Dot & Key back in 2018 with a vision to create a fruit first beauty brand which is effective yet fun. We wanted to cater the brand to. Younger millennials and Gen Z. I think since 2018 we've come a long way. We now have a team of over 100 members. We do revenue of INR 600 crore ARR and are profitable. A key focus is face care because. That's typically with the highest gross margins with about eight different subcategories of face care. We operate in. Moisturizers and our sunscreens. Are our hero product categories where we are actually dominating in the internet space? We had top three across key marketplaces. For these two categories over the last few months. We have about 70% of our audience as female and we typically cater to metros, Tier 1, Tier 2. As you can see here, our growth. Has been at the speed of light. We've grown about 10x over the last few years and I think we've just started on our journey and we can just grow probably 10x more over the next few years. Our objective for the next two years is to get to INR 1,000 crore. Revenue and we've been profitable since January 23rd. We've received a lot of consumer love over the last few years, which we can see in the numbers and of course all the accolades that our products have received over time. The question is how we did it. So how did we do it? Firstly, we strongly believe in offering only differentiated quality products to our consumers. Everything that we bring to the market is based on very strong consumer insights. Only consumer need gaps that we identify are worked on and products are delivered on very strong KPIs and only then. Launched to the consumer. For instance, sunscreens which we saw tremendous growth in were purely based on the insight that it's hot and humid outside where you use sunscreen. So typical traditional sunscreens are heavy, greasy, oily. Dot & Key reformulated sunscreens to make them completely water light, almost invisible on skin. And hence consumers lapped up on the. Product category and we grew. You can see the sales numbers here. You can actually see the consumer love through our numbers. You know, typically we just have a presence in the sunscreen category till OND 2022. We really launched our first solid sunscreen to actually dominate the market in JFM 2023. You've seen in the last 15. Months we've actually grown from a presence. In sunscreen to be the top three. Sunscreen brands on the Internet. We actually have much larger market. Share than a lot of traditional brands today. Secondly, packaging. We believe that for a very strong, sustainable brand for the future, the visual identity of the brand is super important and for us it lies in the packaging. Since the inception of the brand in 2018, we have invested heavily in the packaging of the brand which today stands at a very distinguished, easily identifiable packaging which we can see in the hat cap packaging that we extend across categories which has helped us really acquire customers quite quickly to the brand. Thirdly, our always first approach. So we believe in bringing categories and trends to the Indian landscape even before the consumer wants the product. So basically preempting consumer needs before the. Consumer knows of it. For instance, we brought about the barrier repair range, the Cica range, and SPF-based lip balms first in India. And that's obviously been a huge reason for our success. Fourthly, listening to the consumer. So we absolutely obsess over consumer reviews ratings. On an average, on a monthly basis, we make about 500 hard calls to the consumers to understand all their pain points, anything good, bad, ugly that they have to say about our products, about our services. And we try to at least work on, alter, innovate, change whatever we can honestly to regain consumer love again to the brand. I think unit economics is one of t he key reasons why we are succeeding. We're making sure that each product that we sell is profitable. In order to achieve this, we make sure we invest a lot in R and D where we own our own formulations. Our cost to MRP ratio is actually one of the highest in the D2C space today. One of our key learnings has. Been that if you want to grow a brand over time is you need. To pick deep categories with very large consumer bases or else you will hit your ceiling too soon. We've been able to actually grow. In very deep categories like moisturizers and. Sunscreens which still have a lot of headroom to grow for us in the future. I think any product that we launch. We launch that product to be number one. We are always either all in to win or we're not in the game at all. Typically within the first 30 days of the launch of a product we know whether we want to make it one of our top rank holders or not. Whatever is required to take the product to the top ranks we do in terms of investments and energies. For instance, I mean a large reason for this obviously is also our obsession to perfection. We don't offer half-baked product to the consumers till the time we achieve all the specific KPIs that we have to. We keep innovating, we keep rendering, altering the formulations. For instance, a Sun stick which was again a first in India, made in India. We had about 60+ iterations of the formulation till we offered the final prototype to the consumers. Obviously we became close to a top three rank holders again in the category. I think the key highlights and the key wins for us over the last couple of years has been in 15. Months we've been able to launch a. Category and be in the top three of that category on the Internet. I mean it's achieved by very, very few brands. We haven't spoken enough about moisturizers but. You know, over the last year or. We've been actually top three players in the moisturizer category. Online we have a lot of consumer love. Over the last year and a. Half, we have more than 50% consumer. Retention rate on our DTC side. Over the last four months we've been the number one skincare brand on. Nykaa.com and top three skincare brands across the internet today. A little bit about our journey. Anisha and me obviously started the brand in 2018. The first few years was more about. A product market fit, finding the right product, what our consumers love, understanding our consumers better so we can serve their. Needs because we believe that the entire. Space is very large. As long as we understand our. Consumers very well and we cater to. Their needs, we'll be ahead of competition and everything else will just be noise. In 2021 we joined hands with Nykaa. Nykaa acquired 51% in Dot & Key and that was a game changer. Since then we've grown about 10x and we've grown to be a very, very. Strong, formidable brand in the D2C space. Now obviously we've just shared about INR 600 crore in GMV AR. Currently we are highly profitable. We are top three brands across the Internet, across sunscreen, moisturizer and overall as a brand as well. I guess we're just getting started. I think over the next couple of. Years we want to strengthen our innovation funnel so we typically launch products to. Increase the pie of consumers that we can serve through product differentiation and absolute clear leadership in differentiated products. We're going to launch a lot. Of interesting products over the next couple of years and I think content is key. We've invested in content lab as. We see it on the right. We have a R&D lab because of our own formulation, differentiated formulations, reduced time to market, etc., so that is. What we want to strengthen over time. I think overall creativity is what. We want to work on as a brand moving forward. Thank you. I am back. Awesome. Thank you so much, Suyash and Anisha. I feel like as a consumer what inspired me the most from this was even though at the end of the day I'm holding one sunscreen stick, knowing that there are passionate brand builders out there who are actually creating 60 versions of something before the final piece is out is incredibly inspiring. Up next, I'd like to call upon Vishal, CEO of Nykaa Superstore. Vishal has had a distinguished career spanning over two decades in leadership roles across the world. Most recently with Unilever before us. Superstore by Nykaa is our eB2B business that aims to serve the underserved retailers across the country to source beauty, personal care and wellness products in a convenient and reliable manner. Over to you, please, Vishal. What an amazing success for Dot & Key INR 600 crore. Big round of applause for Suyash and Anisha. Bigger. Not big enough. Bigger. Thank you. Good afternoon, everyone. My name is Vishal Gupta. I'm going to talk to you about a super exciting business, our eB2B business. What I'm going to do is talk to you about three things. First, why we should be in this business, why it makes sense for us. Second, how are we using technology to really build a differentiated and sustainable long-term success business. And third, how are we going to scale up and we are scaling up profitably. So why are we in this business? As Anchit said in the morning, see the beauty BPC market in India is a highly underpenetrated underdeveloped market. As we go along, this market will continue to grow more than double-digit. While a lot of the growth will be driven by online, but a lot of that growth will also trickle to offline and even in tier 2, Tier 3, Tier 4 cities and ultimately rural as well because the whole ecosystem will develop and the offline traditional stores, while they will decline in percentage but will still remain a big part of the market and with technology we can disrupt that market through eB2B and we have in front of us examples from other markets where eB2B has already become 10%-15% of the market while the starting point in India was 1%. And if we see in the last few years then that 1% has already become 2.53%. So in a few years time it will reach 7%-8%, it will reach 10%. You know, as a digital first kind of a technology led company, we are actually very nicely placed to lead that transformation from offline traditional distribution to actually E distribution. So it's a big, large, addressable market. The other thing is this is a market which is ripe for disruption because there are a lot of challenges in the current model. The current model is very complex. The products have to change multiple hands, there's a lot of leakages in terms of margins, in terms of availability, in terms of service, etc. So that's one part. Also it needs lot of scale to be able to have your own distribution system. Most of the D2C brands and challenger brands and we saw from Anchit's presentation, there are so many of these brands and these are the brands which are going to power the growth of BPC in the future. For these brands it is super difficult to have to build an efficient physical distribution system. So that's where we come in. We can offer that service to them. Interestingly, even established beauty players, their whole distribution system is geared to sell their best sellers while a lot of their innovations actually don't find the space to actually grow. So even for them it makes sense to partner with a player like us, right? Then the whole data and consumer feedback, there are advantages to having a digital business. Same for retailers. They don't have access to the wonderful new D2C brands that are, you know, changing the consumer landscape. The lack of credit pricing is not very transparent. They don't get the stocks that they want, you know, they have to deal with multiple brands, etc. So from both the sides, supply and demand, actually there is need for disruption and that's why eB2B makes a lot of sense and therefore for us we are one stop shop. So the D2C brands need to talk only to my category team, my category managers and we will do the rest and take them to hundreds of thousands of stores all over India. And we are choosing to focus on the BPC and wellness because that is Nykaa's core strength. Right? We are focusing from the retailer side on, again the underserved which is the beauty centers, the pharmacies etc and you know, so, so our reason to exist is basically to serve the underserved by technology whether it is a D2C Brands or the retailers. Yeah. And you know ultimately Nykaa as a retailer is number one in the beauty ecosystem and the more the beauty ecosystem develops, whether online or offline, at least Nykaa the retailer will benefit a lot. Therefore it is very important for us strategically as Nykaa to offer not only e.com but also offer this eB2B because then in the beauty space we become an end-to-end player offline and online. And even for our, like I said, our D2C brand partners who are becoming big in.com, at least for them also we offer them value proposal because you know, ultimately D2C brands only reach a certain level if they're online for scale up. They have to go offline and who better than us to partner with them having successfully partnered in dot com. Right. And like I said, so it's good for the ecosystem because more customers in the funnel, same for our brand partners. For them, you know it's very, like I said, very difficult to get physical distribution. So we are able to give to them even the FMCG, you know, core brands, they cannot do justice to premiumization, to innovation etc. They're stuck in the core so lot of places. Right. And even to our global brands Anchit spoke about, you know we become one stop shop across all the formats: dot com, modern retail, GT distribution. Actually we are one stop. Yeah. And for the retail obviously there are a lot of advantages and our actual purpose if you ask me what excites us is that we are doing our part in improving the livelihoods of the retailers because we help them to grow their high margin category which is that beauty category. So you know, so we, we have win-win for everyone. Yeah. And then you know, and how we are disrupting is actually really using technology because what technology does, it helps the retailer to actually get access and discover new brands. They're able to get very transparent pricing. They're able to get, like, if I buy X I will save y money but if I buy 2x I can save more money. There are coupons, etc., so we are able to actually ensure that the retailer in every order can actually maximize his earnings because he has full transparency and control over what to buy and how much to buy and when to buy. Right. Unlike a distribution system, which is, you know, very static in terms of their beat plans, etc. So digitization actually really puts the power back in the hands of the retailer to maximize their earnings. Yeah. Okay. What we have also done to make it easy now, different types of retailers have different needs. So there are beauty centers, there are pharmacies, there are general stores. You can see from this because their assortment is different. So we have customized, it's personalized. So depending on the type of the retailer, the shop that they experience in our Superstore app is different. So the recommendations they get, what they see is very different because it is personalized to what their shopper is coming to their shop to purchase. And like I said, we want to increase the earning potential of the retailers. So during the journey, there is lot of offer assistance throughout the journey. Right. In terms of cart tools, in terms of quantity, purchase, etc., so continuously we keep. Actually technology helps us nudge them. Okay. That you have bought INR 3,000 worth. If you buy 500 more, you'll unlock X coupon. Right. If you buy a certain brand, if you along with that brand, you buy another SKU of that brand, then again you can earn more. So you know, which no salesman can ever do. Yeah. So technology actually really helps us maximize the earning of the retailer. And then, you know, we do loyalty programs and we came up with this again, small innovation called our own wallet and Super Cash. So when they earn some money, it goes as Super Cash, which means then to use that money they have to place an order again within a certain period of time. Yeah. So you know, that also incentivizes them to actually keep coming back to us again and again through the Super Cash. Yeah. And most importantly, technology helps discovery of new brands. All the beautiful D2C brands, all the beautiful innovations that we saw from Dot & Key, from Nykaa Cosmetics, K Beauty, all our brands. Right. Retailer is able to discover those amazing innovations because we are able to through technology, through their purchase behavior, you know, recommend to them. Like you can see on the left, we have the advantage of.com data. So we know what category or innovation is trending in a certain pin code. So we are able to leverage that data to recommend to the retailer that this is trending in your neighborhood. So you know, you can actually buy this, you know, and you can see. So our recommendation engine actually works beautifully. That's really the power of technology. Right. So that's how you know, so it's a large addressable market. We have a purpose which is emotional to improve the livelihoods of the retailers. And we are able to do that by democratizing availability and through technology allow the retailer the best chance to buy the right brand and make the most money, yeah. And increase their overall sales. And you know, and we have scaled up nationally so we already have 13 warehouses. We serve 1,000 cities. You can see the numbers. So we are quite scaled up. So you can see, right, that you know, from the, from our ratings etc. From the feedback, you know, there are a lot of great things that our retailers tell about us. Of course there'll always be improvement. Every business has to keep improving. A lot of great stuff that our retailers tell us. Yeah. And you know, with such a great kind of a service, no wonder, you know, then, you know, it reflects back is back in numbers and you can see great product market fit, rapid scale, you know, so we almost doubled our business. So we have, we have done a GMV of INR 600 crores, you know, and you can see that even, you know, now, you know, even the last couple of months. So we are growing month-on-month, right? So we are, you know, 80%-90% kind of growth year-on-year and we are already touching 2 lakh retailers actually we have crossed 2 lakh in April, you know, and you can see, you know, and, but a lot of our sales is coming from tier two towns and in the underserved, you know, beauty centers and pharmacies, etc. So there's a lot of product market fit, right. But I think it is important for me to also land this message that you know, we can scale up even faster. But actually we are very clear, we are very conscious that we have to scale up in the right way. Anchit also mentioned many times when you acquire a customer, you have to acquire a quality customer, right? So that your economics work out well. Therefore we are very careful in which customer we acquire, how we acquire and our journey to scale up should go in the. So it's quality growth, not just growth, right? And you can see that our average basket size is increasing, our average order value is increasing. And even in the purchase basket, the composition of more brands which are more margins for us, right? That is increasing because that's how our path to profitability becomes better, right? So growth, but growth with the right quality, right? And you know, and we have become so scaled now with so many visits that our ad income itself is going up, right? Which becomes a key contributor to our profitability. So you can see the numbers so big in service income and obviously with scale and you know, and we are a digital first business. I can't tell you the amount of data we have every day, every order, I can actually see every order, you know, is it going to be profitable or not, every warehouse, every day we have that kind of data system. Right. That's the power of a truly digital technology business. Right. You can see fulfillment costs have come down by almost 700 basis points. Sales and marketing cost has come down, contribution margin has improved. This is last year but you know, going forward again in a path to profitability. Four things we are going to focus on: gross margin improvement which, like I said, is better order quality, lower fulfillment cost, lower warehouse cost and lower sales cost. Yeah. And I'm going to tell you how. So I spoke a bit about order quality which is selling more profitable brands. So how do I drive mix? Right. So that I grow my margins? You can see if my average gross margin is X. My profitable brands which are the D2C brands is 1.4x. So the more I sell these brands, my mix improves. And we are also through technology making it easier for our system for retailers to understand. So we have called it something called featured brands. So everyone, so my supply chain team needs, I need, you know, to ensure availability. My technology team knows, the salesman knows, the retailer knows, everyone knows featured brand means good. So more, more featured brands and more orders means good. So we, we, we drive that, you know, very rigorously even in terms of, you know, so therefore gross margin will improve by increasing the contribution of these featured brands. 40%-60% visibility income will go up as we are scaling up and we already have proof of that in the last couple of years and you know, overall, so therefore our gross margin will improve by 1.4x in the next 8 quarters. Yeah. You know, if you read reports of other B2B businesses, actually our gross margin is already very high and that will become even higher because they've chosen to play in the beauty vertical. Yeah. Then when we look at our warehouse cost, again very interesting. Like when I, when I use a third party warehouse, my cost is 1.8x if average is X. Okay. My own warehouse average is 0.8. But within my warehouse is 13 warehouses. Some warehouses are already at 0.6. Right. So we know how to space utilization scale. You know we're using a lot of technology like you know, handling in cases, more technology let pick and pack where to place. So a lot of stuff we can do to improve efficiency and you will see we'll reduce the, you know, the semi fulfillment variable cost by 40%. Through all this we're already moving away from all third-party warehouses within the next 2-3 months. Yeah. Same in full, same in our fulfillment cost. Right. So the more we sell in bulk, right. In terms of full cases, higher the AOV. Right. The freight cost obviously comes down. And then our location strategy. So a lot of our warehouses are based on location strategy, you know, economic, close to the warehouse, all orders. So through all that our fulfillment cost will also come down by 20%. Yeah, our salesman productivity. If average productivity is X, then we know that there are people. Right. Productivity ranges from 0.5x - 1.5x. That's a huge gap. Right. A lot of that is driven by the time the salesman has spent in the system because then he builds a relationship, he gets used to it. You know, he knows which are the, like I said, more quality customers versus less quality customers. So he's able to, you know, and you can see the differences from 1x to 3.3x in terms of time. So we have, you know, and what through technology we're also using like the same salesmen will cover more and more outlets and so that the retailer actually does more and more and more. So overall we will again improve our sales and productivity by 60%. Right. So this is my last slide. So what I've shown you is why we should be in the, why we should be in the market, how we are leveraging technology, what's our advantages? We have done an amazing job so far in scaling up and we are very conscious of how we are improving profitably. So in the next. So like I said, we improved 22% right. In last year and we are going to improve another 20% in next two years and going to scale up by 9x right. In a few years to ultimately achieve EBITDA of 3%-5%. Right. So look forward to an amazing growth story and profitable. Thank you so much. Vishal, I'd now like to introduce you to Rozita Norouzi, the CEO of Nysaa. With a career spanning over 15 years in the retail industry, Rozita joins us from the Sephora LVMH group. Over to you Rozita, to address us about the exciting business opportunity in the GCC and our ambition to grow there. Good morning everyone. Rozita just joined over a year ago. Pleased to be here. And just click and. That'S it. Okay, thank you. So today I'm just going to talk. Okay, I talked about Nysaa. Nysaa is Nykaa. We just replace S with K. In Arabic it means woman. So as you can see, we managed to keep the brand logo. The brand is Nykaa and we are going, we are just only going with the name of Nysaa. In Middle East. So just a little bit background about the GCC markets and how what's happening in GCC. Just a little bit of perspective. Okay, so it's a really evolving market. GCC with a 59 million population is demographically super strong starting with KSA with 35.5 million population with a really, really futuristic vision that is coming in this region. Neom that is going to be a sustainable city in this region. The country is hosting over 5 million -6 million pilgrims on a yearly basis in Mecca and is expecting to grow by in terms of tourism to grow about 50 million by 20 by 2025. So great potential in Saudi. Myself, I lived in Saudi for the last two years is an amazing place. I don't know if whether some of you have been there. There is a place to be and the place to invest in the future for most of the large international organization and many organizations such as Apple, Microsoft. Now they are moving their head offices to headquarters to Riyadh, which is capital city of Saudi Arabia, UAE. Uae. I don't need to talk about it much. We all know Dubai is one of the places to be, a place where all investors and all the rich people are going there as well as a younger generation. So the country is moving really fast in terms of innovation. Dubai Mall, Mall of the Emirates, being one of the largest malls in the world with the highest takeover turnover in terms of footfall. So it's amazing place to be. Qatar again I don't need to talk about it is one of the countries with the highest GDP per capita which is around $80,000 for Qataris. The average transaction value for customers in this region is really high. Each customer is spending around $400-$500 whenever they visit any normal retail store. I'm not just talking about their niche brands. Kuwait, again, one of the countries, oil rich with a very high GDP per capita as well. Very [strong] in terms of the investments they've got [the] largest investment [the] Kuwait Investment Authority [investments] that are investing all over the countries around the world. Not only in Kuwait, yet again, very strong country in terms of investment and Bahrain and Oman geopolitically really, really in a good location both close to countries around the Persian Gulf and as we can see these countries along with 59 population high disposable income from the consumers, very good relaxed taxation rules that is attracting many people from around the world whether from the celebrities around the world or investors who invest in these regions or even just live in these regions. So with that perspective, so just talking about a little bit of the beauty market in this region. In fact, in terms of beauty market, these are the data that 2022, $30 billion is a beauty market in that region. 50 million customers we are looking at around $500 per capita and 40% of the population are female and under 25. So it's a really great region to be is a really great region and it has got amazing opportunity for the growth. As per some of market data we see that some female customers they are spending around $300 for only beauty products. So they're just buying makeup, they're just buying a skincare. They're just like any perfume that is coming to the market. And they love newness and they love new brands. And this is where we can see that Nysaa is born in Dubai. So. Just a little bit perspective about beauty market, what's happening and what is the current competitive landscape in this region. So I just go slide by. So currently the beauty market in this region starts with the department stores which were more traditional like Debenhams, Harvey Nichols, Bloomingdale's and mono brands. Mono stores such as Christian Dior, Charlotte Tilbury. There is a lot of lots of mono brands in this region. As well as you can see Kiko Make Up For Ever. And of course we've got the online business that Amazon and Noon, Ounass, Coles Beauty. There's a lot of lots of cross border business as well. So looking at overall the size of the market we've got the prestige beauty. This is as at the end of the 31st of December 2023. We are looking at in total around $2.4 billion -$2.5 billion of the business. This is where Nysaa is coming on. There is a gap in the market. There are only two retailers in this region. Multi beauty chain retailer is Sephora and Faces. That's where we have started. We have decided to enter very right place to be consumers in Middle East. They have two option in GCC either go to Sephora stores or go to Faces. Faces is mainly in Saudi most number of their stores in Saudi Arabia. But Sephora with 90 stores are in most of the regions including Qatar, Kuwait, Bahrain and they're entering Oman as well. So it was a right move for Nykaa to enter GCC. There is a gap in the market with Nykaa to just enter in this perfect spot that there was missing. And this is where we are filling the gap obviously with Nykaa. So we entered the GCC beauty market. Obviously there was the right move to do. In a strategic partnership with Apparel Group. Apparel Group is one of the largest retail firm in Middle East with over 80 brands, over 2,200 retail stores. They keep expanding and with 15 platforms of the e-commerce and their presence in 14 countries. Obviously, Nykaa is self-explanatory. I don't need to talk about it. This is where Nysaa is born. So that's how we are entering the market in a JV partnership with Apparel Group in this region. So what is our ambition? Our ambition for both online and offline is to stand out in the Middle East with an experiential multi-beauty retail concept to engage customers at every level of their journey. This is whether offline or online. This is where we are going to head and we will make sure that we make that right footprint the way that Nykaa has done in this region. What are our brand pillars? Superior service that is going to be again both online and offline. We built a store concept that is offering the customer freedom and we have play table and editable customers. We had a fantastic feedback from our customers in the store. We are providing services to them and obviously that includes our.com seamless shopping experience and love by all. We have customers, we just launched in March 1st and we have customers for the past two, three months. They're coming back to our stores and they're also coming back to our platform and they're shopping and obviously is memorable. What is good about our service, what we do and we are different with other retailer brands in our store. In our number one store the team is our team. It's our own team. We do not have other brand bias. This is making customers to feel much more comfortable. We are giving that freedom. We are training our team members. All our team members are either skincare specialists that have great background or they are makeup artists. So each customer enters our store. Our team is unbiased and offering the best service to our customer. That's why with the first feedback for the first 2 months -3 months we had amazing customers who are coming back and they're shopping with us and what's happening is the customer that's buying expensive products, they're also buying Dot & Key. By the way, they love Dot & Key products, and so great, great feedback we receive from all our customers in our stores, and we launched in March 1, 2024. Very successful launch, and I'm just sharing with you the video. From Monday to Sunday. Girl, you know you have it so unique. I hope you like it. This is a nice song we are playing in our store. So it's just a little bit is still at an early stage but we thought it would be good to just give a little bit of what's happening and how the business is performing right now is a promising performance as I said very good. Both qualitative and quantitative KPI in terms of conversion rates we are reaching around 16%. I have not put in this slide but this is very good for a new retailer that to reach 16% we started with 8%; here and now it's 12% right now on a daily basis we are around 16% in terms of the platform share we are around 10% YTD is 10% online but in the month of June we jumped around 18% of the online business which is fantastic. Our online is doing really good and we see increase in traffic on a daily basis. Average order value in Middle East is already high as we know that consumer they have high disposable income in offline we are doing around $75 and online we do around $55 and we are expecting this to grow by $100 when we open our number three and number four store but category, category mix makeup still is as strong as any other retailer as Nykaa is 65% contribution is makeup and skincare 25% and we've got 10% of fragrances and other brands. So overall what we see that consumer there and they're, they are getting. We are getting very good response from all consumers. We've got Gen Z who they come to our store, they love our stores they have that freedom to shop. They are buying Minimalist, buy Dot & Key and they buy Augustinus Bader and they're buying Dr. Barbara Sturm they're buying Kylie Cosmetics so they are getting the products that are not available in any other brands in this in Middle East region. So this is, this is the feedback we had looking at the current performance of the store. It is still really premature to talk what we are looking at around $2 million average run rate but I'm pretty sure we should end up higher than this number. But we just wanted to be a little bit conservative so as I said we created so many great brands. K Beauty is doing fantastic. Soon we are going to have Nykaa brands. We've got some of small section for now but it's going to come in a bigger format and we've got expensive brands like really niche prestige brand and we also have affordable indie hot brands and we keep bringing new brands in the market in our retail. So this is just some of them. Sorry, let me just go back. It's just mix and match so it's not all of them. But right now we have +60 brands in a store. By the end of September, number of brands will reach to 80 stores, 80 brands because you know the registration and all those regulations take a little, little bit of time. And in terms of online we have over 200 brands and we are aiming to by next year to go over 1,000 brands by the end of next year. What is our vision? Our vision is to by 2028 to be everywhere in Middle East, in GCC, to basically to focus on KSA as well and obviously UAE with this huge market, we are aiming to be everywhere, to have our footprint everywhere. We are aiming to reach minimum 7% of the market share of beauty of GCC beauty prestige brands and to open 70 stores. That's by 2028 we will be. The way I see it, the way I see that Saudi Arabia is growing. The way I see that there is that gap in the market that customers are hungry for a new retailer, the new generation, they want newness, they need fresh environment to shop. And this is what we are offering and this is where this partnership had worked perfectly well. And myself, I feel that this is going to be. I really strongly believe is going to be fantastic. And we are looking at 7%-10% market share by 2028. Thank. Thank you very much, Rozita. I feel like Nysaa is a great extension of a lot of things that we stand for at Nykaa. At Nykaa with our sharp content-to-commerce strategy. From day one we focused on educating and empowering our consumers. As we sort of take a break for the next 10 minutes to get some refreshments, feel free to step outside and actually experience a lot of the things that the folks today have spoken about. As you exit on your immediate right, you will have a Nykaa Fashion pop-up. Play around with the app; you get to see a lot of the collaborations that Falguni took us through. Next to which are two beauty vanities where you get to touch, feel and explore and play with a lot of our global offerings as well as a lot of our own brands. A lot of the tech that Anshu talked about through our in-store retail experiences are also available out there. So you can actually get your skin analyzed by our beauty advisors and they'll be able to recommend products to you based on your immediate concerns. Next to it on your left you'll have an Aveda pop-up where our beauty expert will do a quick scalp analysis using tech and they'll be able to recommend products that will work super well for your immediate concerns. To our immediate right and left, as you exit the Aveda pop-up, you'll get to experience some of Nykaa's top performing IPs. You'll see Nykaa Wedding on the left and there's a lot more information there. And on the right, you'll get to see a lot of our stepification and the education that we've been trying to drive to consumers. So go ahead, take the time to experience, touch, feel the products, and me and our other beauty advisors there will be around to help you out. While we're currently at about 11:35 A.M., we look to start our next session by 11:45 A.M. So please join us back by then. Thank you. All right, thank you for rejoining us, everyone. I hope that was a special day for the United States. I'd like to call upon people who are just joining us in the back. We're just about to get started with our next session focused on Nykaa Fashion. Over to you, Nikhil. Okay. Awesome. So we talk about Superstore and, like, a bath and body business. We all know FSN is super large. Next slide. Sorry, guys. Take issue. One second. Okay, we're good to go. Awesome. Thank you. No problem. So we all know fashion is a large market, right? The e-commerce space is massive. It's like $14 billion going to $50 billion. But within that, we're very specifically focused on the premium fashion landscape, which is a phenomenal $3 billion market. So that's where Nykaa Fashion's focus lies, out of the large e-commerce market. And just to put that in perspective, our entire beauty and fashion business is built on a $4 billion e-commerce market, right? So it's a very large, sizable market which we can focus as a company and build some really good business. And it's also going to $10 billion. Really. The premium fashion space is where we are differentiating and where we're focusing. The way we're doing that is across two different businesses. One is obviously the women's space. We know the premium women's landscape very well and obviously from the beauty history we have. So within the fashion premium women's space, already we are 20% market share, right? That's phenomenal, guys. We've already achieved a really, really large number in a really short time. And it's really commendable to the consumers who really appreciate the platform that we built. We got 20% market share and the AOV defined is about INR 1,500. This is the premium landscape. If you look at the entire India fashion landscape you have the mass, the masstige premium and luxe. We're entering from the premium landscape and we are expanding into the luxe as a business, right? And also the men's side. We know that's an important space, guys. It's all of you in the land, in the audience. As men, we don't really have a premium platform for us to buy what we need from a grooming and fashion perspective. So we're building Nykaa Man. It's a standalone app. I request all of you to download it, please. It's an amazing app. Be our customers and really appreciate what we are building for the Indian ecosystem for the future. It's a very small business for now. Early days, investments are tight, but it's something we're building for the future to play in the premium men's landscape where we also see a market gap, and also on like a fashion, there's a men's portal again. Women play an important role in influencing men, and number of men do appreciate the Nykaa Fashion men's portal that we build. We're playing the entire premium fashion landscape, the entire $3 billion market which is going to go to $10 billion. Right? Now why, why are we here? We saw a market gap, right? And what is the market gap in fashion? It's exactly the same market gap that we spotted in Beauty years ago. What we spotted years ago. Beauty when we started had mass distribution GT/MT. It had lux in certain pockets in malls but there was no premium landscape like no premium player. And the premium consumers are really looking for something unique. They completely different from lux consumers. So we built an entire beauty premium platform which then dominated last. We think the same thing in fashion. We realize that the premium landscape there's certain e-commerce players doing mass very well. There's few lux pockets. We are fashion building a very nice premium platform and tracking that market gap that there's very little trend and trend focus. There's a lot of cool trends in fashion. It's a very exciting space and also to bring the brands alive in the real world or across all of these platforms there really isn't a platform. So we saw these market gaps and we realized the entire beauty playbook which we have built over the years and is a phenomenal playbook can be reapplied to fashion. So that's what got us into the fashion market. We overall we have a few strengths. We understand the premium women customer better than anyone in this country. Right. So, leveraging that strength, we have amazing tech capabilities which is fully built in-house. So, leverage that to strength. And also, we've done this over the years with extremely tight unit economics and very tight investments, and we knew we could replicate that in the fashion space as well. And what have we done right over the last few years, very, very quickly. We have got amazing product-market fit. We've got consumers who really find our platform unique to engage with, amazing assortment which is again, a lot of it is unique, and a discovery which is unmatched. Right. And this is, this is a very, very exciting. I'm going to give a sneak peek into a new Stay Stylish branding campaign. You guys are the first ones to see it. Guys, super secret, super cool. You are the first to see it. We are going to launch this next. Nykaa Fashion 10,000+ new styles and it needs to change direction with my passion. There's a few. Where did you get that dress from? Influencer of unique style face stylist with Nykaa. There are two more. Influencer automatic types of Facebook. Sorry guys. That's. So that's why I'm super cool, super excited to be Nykaa Fashion brand to the next level. And what we do is stay stylish is not only something we're connecting with our consumers about, it's how we live and breathe as an organization internally bringing style to the forefront. It's also how we work with our brand partners and why we exist in this space. So for that we've also got an internal Nykaa Fashion anthem. I want to teach you to answer. You guys, put your pens down, put your laptops down. Look here, I'll teach you all of it. Like how we live, how we breathe and the decisions we take are based on this anthem. So follow me and you have to know what I say, guys. Be a sport. Yeah. So when I say Nykaa, you say fashion. When I say Nykaa, you say stylish. So guys, this energy, enthusiasm we have been tracking into an amazing new market. The internal teams and all the decisions are based on style, premiumness, discovery. And that's how we're really changing India, changing the landscape and changing our consumers by fashion in this country. And with that you can see the numbers, right? In a super short time, we've achieved phenomenal growth and we've done that with amazing differentiation. Right? What are the couple of big things? AOVs are 2x that of industry. India's a huge market, right? So there's a very clear differentiation from all competition and for consumers, from an EBO perspective, our top quartile customers actually spend 5x of the industry average. Right? We're getting really good love from the consumers who have understood our platform standpoint. They're adding value to their lives. All our consumer metrics have been tracking really well. Our unique visitors have been growing. They're investing in growth within that. We're also getting higher number of annual transacting customers and our orders are growing. But that's happening with a very, very cool thing that our conversions are going up. So not only is our business growing, the quality of business is also improving year on year. We're still young in our journey. We have a long way to go and we're looking at more continued improvement across the customer metrics that we're working on. In this short time, what have we done? This is a BofA survey that was done. It's really cool. It last year only this part of the chart came out when Nykaa Fashion already was the second most appreciated and loved consumer online platform. Right? In fashion, which is phenomenal. But we've come in and we've already become a number 2 player. We're taking mind share from some of the top players in the industry and that feels really good. And what came out this year, which is even more phenomenal, right? This came out before our brand campaign, guys. We are the number 1 platform of choice for latest trends and styles, right? And latest trends and styles and drops is what we stand for and what we want to own. So it feels really, really happy that consumers and their service actually relate to what we are trying to build and how we are driving this business. And that also plays out in the metrics, right? Our percentage of new season sales. Fashion is all about new season. Our new season sales is 2x that of industry. Talk to any of the brand partners, they will tell us that also leads from a brand perspective, higher margins for them because you're selling at full price versus discounted sales. Which allows our relationships to get deeper. And also invest in marketing and build the brand on our platforms. Right? The way there's obviously a lot of cool strategies we are trying to do, right? We have to put the consumer, the premium consumer at our heart and build backwards from them. We build backwards for them. A number of strategies across discovery as well as our platform key pillars that they attracted to and to support that amazing assortment across each of these pillars and categories. As I talk about a couple of. Then, for example, fitness and athleisure, we all know it's a killer trend across the world. It's picked up on our platform; it's grown twice the platform strength. We're investing very aggressively in building better supply on athleisure as a category and for women-specific fitness. This is a conversation nobody in the country is really doing well, and we are going to dominate and bring these conversations to the forefront to add value to the consumers. We also have Gen Z stock. Gen Z is a big trend, bringing cool stuff, fast fashion to the consumers, investing aggressively in that as well. All of this comes through delight, right? If you want to be stylish, what is the single thing our customer relationship is built on? Delight. Right? Delight is a key strategy for us this year. We've got amazing curation and quality. Again, hand-picked brands. We also have a lot of curations which are really trending. We go deep as experts within the category and bring out some really cool trends which really consumers appreciate and be part of their lives. Like the Beauty Store, really be part of their lives in terms of what matters to them when in the occasion. Across the country, right. Through this we've done a lot of hard work. We're still young in our journey, but we've done a lot of hard work. In the last few years we've gone from 1,500 to 3,200 brands, right. It's a lot of onboarding. We have a team in place. But all of these are handpicked and curated. There's a lot of brands we say no to at least 100 brands a day, right. Because there's a lot of stuff in India which are labels, low quality or we believe are not on trend. We actually don't onboard a lot of that. So this is extremely handpicked growth across that. And within that we've got 20% brands which are only with Nykaa Fashion because the brand chooses us as a preferred platform. Right. So again, assortment and differentiation is very important. When you look at the premium landscape of women, most of these are sitting there. We actually have more than 30%-40% uniqueness within that specific category. So again, it makes it really interesting for us that we are actually providing differentiated assortment to the consumers in the country, which has not been available here before because we're taking a premium angle to it. Right. Even our style count. We've got some really unique styles in terms of growth. Hidden trends is one of the categories like strategies which you saw a little earlier on the slide. What this is, is we travel India across the country, go meet hundreds of brands and within them we look at the quality products style and our expert team onboards only those brands and with them, many of them choose to be only with us both in Indian wear and western wear. We've got some amazing designers in this country who the consumers don't even know about. So we are building a long term relationship with these partners allowing them to grow and for consumers to have something new and interesting to buy. Then we also going across the globe and we were a couple of huge global partners who chosen us, Nykaa Fashion to be their preferred partner in India. One such example is Revolve. Revolve is a $1 billion U.S. company. It's super trending. Most of the revenue comes from brands that they have built on their own as well. So super trendy, super cool. You go to USA, everyone's talking about Revolve and its growth and how it's adding value. They did all market survey in India, they came and met everybody and they chose Nykaa Fashion to be their preferred partner. And what we did is we made life really simple for Revolve. We brought all their amazing brands to life to the Indian consumers, did a super cool launch, brought in influencers, did an event. It was really well appreciated. The partnership is getting deeper as we speak. So not only did we work really well with the brand partner, we also changed the customer experience in India for global cross-border goods. So this is an inventory-led model, all the inventory sitting across the world. When a customer orders, we actually get the product shipped to the consumers pretty quick. And we've done a lot of close collaboration with them. What we've done on the consumer side, it's a big hassle generally to get products in. You have to put up with your partner calling you. There's hidden costs, there's pricing. So all our early studies show that the premium consumer does not want to deal with this hassle. So we've taken all that load ourselves. We can get a very slick process for consumers. They order on our site, we manage everything at the back end and simplify consumer lives. We've done consumer simplification and unlock amazing global brands to the Indian consumers. We are locking a lot of international supply over the next year or two as well. This is a big one for us generally. Yeah. Another huge win for us was Foot Locker. We just announced this earlier this year. Foot Locker is an $8 billion company and they are amazing. I think everyone who's traveled Europe has definitely bought from Foot Locker. They were looking to India. They again came in, did a deep market research, spoke to everyone in the country and with all their knowledge and experience, they chose us, Nykaa Fashion to be their preferred partner. So we actually are running the entire online business of Foot Locker and bringing a shop-in-shop of Foot Locker onto the Nykaa Fashion platforms. So one of its type partnerships, they innovated to be a partner with us and bring this alive. This really both these, both these examples and there's at least 20 more is a testament that we are adding value to brand partners who are looking for premium consumers and to premium consumers who are looking for amazing brands because both of them Revolve and Foot Locker chose us because we're the only ones in their view who understand the premium consumer in India well. This is a consumer with a high amount of money to spend. So that's, that's really what the focus is. So it's a very strong partnership. Very excited about this. Also with this we are bringing 30% assortment of some of the sneakers that they will sell which don't exist in India before. So the premium consumers are these super stylish products. Right? We can all have them, which were not available in this country. That's a huge unlock for the consumers of India. Moving forward I think we've told. You about how this amazing business is being built. Obviously, eventually it's about the P&L as well. We understand the P&L deeply and we want to drive improvement in that on a day-to-day basis. Right. What we've done is we've grown NSV over the last few years. Right? You guys have seen that earlier. Moving forward we are going to go 2.5x-3x growth from here over the next 3 years. We feel pretty good about this. I think the value add and all the stuff I spoke about gives us a confidence. The brand assortment growth is something we're still on in the journey. We've got a very good assortment, very good portfolio but there's more work to do and that's really going to help drive like Foot Locker is actually launching in October, November this year. So that will give us additional growth. So number of growth levers from an assortment perspective that I want to add. And we are continuing to invest in new customer acquisition. We are a young business and we do need to get more and more customers on the platform. That's going to lead to a good amount of growth. Then the fourth, as we do a better job on platform, as we do a better job on tech discovery, we are just going to have existing consumers give us more love. As they give us more love, we'll have more consumers who spend more with us. The repeat customers and their behavior is going to improve. Right. So that's also going to lead to significant revenue growth for us. So key levers we're working on in detail. Our gross margin is in a very, very healthy space for the fashion retailer business. We already had a 44.8. We've had a 0.6% margin expansion in the last year. Right. This is super healthy. Within this we still believe there's room for growth over the next few years. Right. We are saying we'll improve about 150 basis points -200 basis points over the next three years. It's going to come from three things. One is ad income. Like I said, we're making some really deep brand partnerships. People who are looking for our consumer side, which is very unique. They've started investing in us pretty aggressively. Also, investing in ad tech in a better way, which is going to improve how that partnership works. And across the world now, across the fashion business, everybody, everybody has started changing consumer fees, fees, and consumers are more ready to pay small fees like convenience fee, COD fee, etc. So that's also going to drive certain amount of gross margin growth for us as the entire world changes and we're going to be following suit. Our own brand shares, which Falguni spoke about earlier, our own brand share is going to grow on the platform and that's going to lead to gross margin. Owned brands are at a higher gross margin and the category composition is a number of categories like Athleisure and few others which are good margin categories. We're going to be driving good growth on those. So all of these strategies will lead to good gross margin. Again, reasonable objectives here. Our fulfillment costs and regional is something which is already reduced by about 0.8%. Again, we are a younger business. All the teams across Nykaa are focused on fulfillment cost and we are driving a lot of learnings across other businesses. Improve regionalization so the products go within a particular state and not cross state. All of that is going to improve our fulfillment costs as well as leakages, which is cancellations, RTOs mainly RTOs and returns which is something we have to live with as a fashion industry. But we're improving the quality of the business, quality of customers as well as quality of faster shipment to consumers. All of that is reducing our leakages which is obviously reducing to a lower fulfillment cost and also depending on the goods we optimizing air to land ratios. So again another 100-150 basis points reduction plan there in the next three years. A marketing efficiency which again marketing comes as an expense. From a financial perspective. I disagree with this comment. It's actually a marketing investment. We are investing in customer acquisition, we're investing in getting our repeat customers back. A marketing investment is going to get more efficient over the years. Last year, already, we've had a 2.5% improvement in how efficiently we're using our investment, and we are saying that this is the biggest cost row within the P&L, and we're looking at about a 550 basis points -650 basis points improvement. Further, as we look into the future and this is going to be driven, it is inevitable. It's going to be driven by a few key factors. One of the big one is the ratio of new to repeat customers. New customers are more expensive than getting repeat customers back from a marketing expense ratio. So as a young business a new to repeat ratio is heavier in the new new bucket at about 40% from last year, it's already gone up from 36%-48%, but it's still 48%. Over the next few years our repeats we go to 75%-80%. This is the maturity of any e-commerce business. It's a natural trend because your consumers will come back, our cohorts will get better, they'll spend more time with us. So this is a natural progression which is going to lead to a significant reduction in marketing expenses. Other than that is the priority of business and conversion rate improvement. Right. We're getting better customers through marketing. Our platform has done a better job and our sourcemix is improving. All of that is leading to better conversion which will lead to a lower. Marketing cost. Absolute overheads and team. We have to invest ahead of the curve from a team perspective because to build what we built from product, tech, business, everything we had to invest up front. Those investments have been made and we're at the peak of sort of where the team needs to be of aggressive growth. This year already we streamlined and we believe the existing team is actually amazing. I feel team is amazing is in a very, very good place to take the business ahead for the next few years and we're going to get overhead leverage. So already this year there's only been a 10% increase in overheads while business grew a lot faster. So already this financial year we've had seen efficiency come in and looking forward we're going to see further efficiency come in. So the next three years we see about 500 basis points -600 basis points improvement from a P and L perspective coming through. So how does this all come together? How does it all come together? What we are saying is over the last year, this financial year 2024 versus 2023, we've had a 380 basis points improvement in contribution margin, which was all the points I shared earlier and 250 basis points improvement in overheads, which is about a 640 basis points improvement in EBITDA for the Nykaa Fashion business. Right? We had a phenomenal 640 basis points while we've had good growth. Right. Something. Looking forward, based on what our optimization and efficiency and what we're confident of, we believe that our Contribution Margin can expand another 800 basis points, 2,000 basis points overhead. We get another 500 basis points -600 basis points leverage. So an EBITDA margin will expand by another 13%-16%. So this is pretty exciting. So this is pretty exciting, right, that. We have a P&L. One of the magic things which you can see is our positioning of the platform. All of this is possible because we focus on the premium consumers, because our AOVs are twice that of industry. It's something we are going to be very focused on in that $3 billion market space. So coming to actuals, right, I showed you all the Deltas. What does that actually flow out? So for the unveiled first time ever, we're showing you our absolute EBITDAs, guys, you guys will be blown away. So absolute EBITDA for last year was -10%. For a business that has grown so fast so quick and change in dynamic, we've managed to hold it on a -10% EBITDA. And what we're seeing, my financial year 2026, this is what you guys can clap for financially. At 2026, we are going to be EBITDA positive. So again, all the drivers of growth are amazing and we're moving there. And over time we see this as a 10%+ EBITDA margin business, right? We're working across the P and L, improving efficiency and adding life, adding value to the consumers. Guys, that's it for Nykaa Fashion. Thanks. Thanks. Thanks, Nihir. A key theme that seems to be emerging for me through having now heard Nykaa Fashion and having heard Nykaa Beauty earlier is that a reason a lot of brands like to work with us is that we give them the space as a retailer to do their own brand storytelling. We saw that in the video from Charlotte Tilbury. We're seeing that's why partners like Revolve, Foot Locker like to work with us is that as a retailer we still give brands the space online or offline to do their own brand storytelling to their exact terms. Next, I'd like to call upon Preeti Gupta, Chief Business Officer for Nykd. She comes with more than two decades of experience in the industry and has crafted and launched leading brands across the apparel and non-apparel categories for men and women. Under Preeti's leadership, Nykd has become a success story in a very short span of time. Over to you, Preeti, to take us through the exciting journey of Nykd. Good afternoon everyone. Sorry, tech glitch. I know we are not looking at you, Rajesh. The joke in the office is that any tech glitch and we look at our CTO. Yeah, that's the joke. Great. So Nykd. Yes. How many of you were here last year? Show of hands. Excellent. How many of you remember Nykd? Show of hands. Amazing. So, yes. So this is a lingerie brand that we've been building with a clear vision as we had done for beauty, to state that the category is underdeveloped and we'd really like to educate women in this space and help them sort of explore this category, understand this category, why it works for them, etc. Etc. And we've built this amazing brand called Nykd. And again. Sir? Yeah, Thanks. Great. So the vision that we've set for ourselves that we'd really like to simplify lingerie for the Indian woman. Women over the years, we've—it's not been a point of conversation. They've not really understood their body. There hasn't been enough brands, enough experiences. For them to pick up from. That's where we wanted to come in and really build this brand called Nykd. The positioning was of course very sharp and layering that we've added product and distribution which is where we've really taken the brand and product to where the consumer is which has led to a lot of consumer love for the brand which led to repeats, kind of 25% kind of repeats which are really benchmarkable repeats in the category. Overall the milestones that we've achieved last year is really, we believe that we've, we are servicing more than 2 million consumers so far with Nykd. We are number one, of course on Nykaa platforms, by far the largest player on Nykaa platforms. We're top three in bras in Amazon as well. We've started EBOs last year. This year we've already taken to 17 EBOs. We've opened our own master franchisee. Above everything, I think we are profitable completely as a brand. Last year, which is FY 2024. So in the last three years, if tech decides to listen to me. Okay. Am I supposed to do a dance? Yeah. In the last three years, since we've launched the brand. 3 years, full years. I'll let you absorb this slide. We've actually hit a run rate of INR 200 crore in this March for the full year. We have already scaled the business 14x in the last 3 years. The first one was just the quarter that we were there and we were EBITDA positive. So I think it really shows the culture of Nykaa, if I may say, which is to state that we just can't look for growth without with losing money. And we want to ensure that the businesses that we are building in are EBITDA positive and not just gaining market share at the cost of losing money. Next slide. This is what we've accomplished in the last three years. Just to show you and contextualize it as to where the other brands were competition. When you look at the top brands in lingerie, they were at INR 15,000 crore. It took them 25 years to reach there. Even when you look at brands in 10 years, 15 years, it's taken them, they've reached to like for example, if you take brand 2 crores, 65 crores, 650 crores. Sorry. It's taken them 12 years and they are completely bleeding for the last 12 years. Here in three years we've been able to create this brand. Most importantly, there's a significant headroom for distribution growth which is still available. If you look at the chart below, while Nykd is present in about 1,500 GT stores and about 17 EBOs, when you look at the larger brands, they're present in about 40,000 or at least 10,000, 5,000 in trade and about between 200-600 EBOs. So there's a significant amount of headroom. Which is still available for growth. Hence we believe that we can really amplify the brand even more in the coming years. Next slide please. Of course the point remains that the total addressable market for lingerie remains large. This is the same slide that we had shown last year which is that the CAGR is strong at 16% and the market opportunity is extremely strong. As we grow and grow the brand, the businesses only like to move more and more from unorganized to the organized space. Next slide. So we've done this on the back like I was saying, we've done it on the back of excellent product to begin with. In our efforts we really believe that Indian women deserve the best products that. The world has to offer. And we really work extremely hard to ensure that we get sourced from across the world products into the brand and which is the. You know, even Dot & Key, Suyash and Anisha had spoken about the fact that we really are consumer obsessed and the amount of research that we do to ensure that the product fitment is incredible is extremely high. Every product goes through between 50-100 bodies. So imagine that every single product has been tried on 50 people before we launch that product. Which is probably the reason why the products are extremely successful as we launch and we have had the next slide. The business is built on a very strong Pareto principle which means that 80% or a large part of the business actually comes from head styles for the brand, which essentially mitigates for all the challenges that typically fashion has which is that there is volatility you're not sure of what you can forecast in terms of sales, in terms of inventory management, in terms of gross margins everywhere. This Pareto really helps in as you're scaling the business. Next slide. So besides the product, we've really taken this amazing product to channels where the true consumer is. This is a slide about our EBO. Next, when you look at the distribution. For the brand, it's very important to. Realize that third-party versus own channels. So we are actually fairly evenly distributed between 60/40 in third-party to own channels and between offline to online as well. We are 56 to 42. What this helps us in achieving is. That we are really clear that it's not just the Nykaa channel which is growing, but as we continue to grow there's enough and more space that that is possible for us to grow in number one. Number two, Falguni earlier mentioned true consumer love can only be seen in offline retail. Because when you are in offline retail you are between all the competition brands as well. It's not just your space and people are able to touch, feel, see the pricing, really experience the brand. And when you win in these general trade stores, that's really when consumer love gets built. And I think this is what the slides show. Next slide. So in terms of online, like we were saying earlier as well that we are number one in the lingerie category in terms of in our own business and number three in bras in Amazon. We are also extremely strong in repeats. 25%+ consumers are repeats and they're. Shopping from us in 12 months and. A lot of consumers are shopping within six months, which is amazing performance even for a new brand. Forget for a new brand, even for the largest brand. I'm super proud to also share with you that a lot of times when people launch their own websites, you end up bleeding in your own site. We have last year, launched our own site last last year and all of last year we've really worked hard to ensure that we're now profitable not only in other channels, but even in the. website of the brand website that we've. Nykd, which is NykdbyNykaa.com. It just shows how frugally we are building the brand and how very, very conscious that we are getting scale as well as profitability. Next slide. In terms of offline, we are present in 1,500 ROs in trade. We've got now 17 EBOs already. We launched franchisee model last year in this financial year since my last presentation. We've in fact signed up our first franchisee master franchisee in Gujarat as well. We're really scaling that up nicely as we speak. Our stores are between 400 sq ft -700 sq ft and fairly strong. Powerfully. This is a 400 sq ft store. But the way we do it, it makes it look much larger than what it is. Next slide. All of this is purely possible because of the consumer. First consumer-loved brand that we've created, and the campaign was called Bra Aisi Braless Jaisi, which basically means that you're wearing a bra but you feel like you're not wearing because you're as comfortable as comfortable can get to. Next slide. We are a technology firm at the end of the day, and we wanted to ensure that even in lingerie, technology does play a large part. So actually launched this tool which is. Called the Bra Advisor tool. We realized that women, 80% of women don't wear the right bras and they don't wear because of lack of education. And then how can we be, how. Can we solve for that? So with technology in, few questions asked and you can actually come up with the right solution of bra. Our tool has actually won many awards for this solution that we are providing. We are also. It's got a 90%+ efficacy as well. 99% actually. Next slide. Just a short video of the tool. Bras. I see ABC Nykd. Double D sub gala. Get the right advice on your side. In just 3 minutes. Yeah, so very direct messaging which is also what the consumer is looking for. Rather than beating about the bush and trying to figure out where it leads to. And all of this, I think this. It's my favorite part about the entire brand has really been built on very, very relatable content that we create. So for example, this is Anshula Kapoor. Women typically struggle with body image issues right from puberty till probably till maybe 70, 80. You still keep on struggling and thinking whether you're looking good enough, whether you. Are good enough, etc., etc. Here we do a series called Nykd Truths where Anshula Kapoor has actually shared that how she used to hate her body and how she's with positive talk with realizing that it's good to be comfortable with yourself is when you really are truly happy. So you can really see these journeys. There are many, many women who have shared such stories with us. Just these are the kind of. Contents that women finally hold close to their heart and dear to them. They really realize that they can have open conversations about these issues rather than believing that you are the only one suffering in that journey. Next slide. The second campaign. This was actually our favorite campaign of last year, which is called All Boobs Are Beautiful. This was, as you can see, the kind of women that we use. It's a lot of a couple of them. Are actual normal women. The rest of them are models. We've actually addressed age, we've addressed color, we've addressed size of women, and we a re saying all boobs are beautiful. This campaign actually came from the inside, which is that when you look at internationally, globally, 70% of women are unhappy with their breasts. 70% of the women are unhappy with their breasts. Somebody believes it's too small. Somebody believes it's too large. But really, is there anything called an unhappy? Is there anything to be unhappy about with your breasts? Because we believe all boobs are beautiful and all women are beautiful just the way they are. It's important for us to recognize that and have these open conversations so that you can really build brand love. Next slide. The campaign won several awards, and we've also won many awards last year. A couple of them that we'd like to talk about is that we won the Economic Times Retail awards for the number one lingerie retailer of the year. Now, it was a very special moment because in three years, just three years to win this kind of an award was really, you know, very, very close to, very dear to us. Of course, we also won the emerging D2C brand of the year award. Couple of more slides. I think some of our favorite comments. That we've seen Nykd. Where have you been my entire life? We've actually seen quite a few consumers posting this, which just shows how they relate to the brand, how they are. There is an actual market gap, which we are really filling with the brand. That we've come up with. Lastly, I think all of it. Comes together. All of it comes together. Beautifully in the flywheel that we are creating. Next one, please. In the flywheel that we are creating. We really have the ambition to become one of the top lingerie brands in the country in the coming years to come. We have made the right investments in the team. We have a very, very strong, passionate team behind me while I'm standing here. There's a whole very, very excited, passionate team who actually works products and campaigns. We've positioned well. We've taken the brand to where the consumer is. We're distributing it well, and I believe that we can soon look at becoming one of the top few brands in the country in lingerie. Thank you very much. All right. While we give our tech a quick minute to sort of make sure the clicker is working, I wanted to take a second to also think about another key theme that was emerging for me while Preeti was taking us through the remarkable brand journey that Nykd has had. When you think about it, being able to use technology to solve for consumer insights that you have is remarkable, especially in a field like lingerie and trying t o solve for it online. I feel like that's quite a remarkable way to look at things. Up next, I'd like to call upon Ganesh, our Chief Financial Officer. He has almost three decades of diverse experience in financial reporting, business finance, taxation, investor relations, banking, M and A, and corporate law, serving as the CFO across companies such as TAFE Group, Pidilite Industries, Godrej Group, Glenmark Pharmaceuticals. Prior to joining Nykaa. So far, we've taken you through our businesses, we've taken you through some really great insights and deep dives into specific parts of the businesses that we want to highlight. Now Ganesh will take you through a financial. Over to you, Ganesh. Thank you and good afternoon, everyone. We have had an exciting set of business presentations, and I can see all of you being very supercharged with how the day has progressed this far. What does it all add up? In terms of financial numbers at one Nykaa level? Take a quick sneak peek. Yeah. If you can go to the next slide. You seem to be having an extended tech glitch. So that's setting the stage for what's going to follow from Rajesh. Yeah, that we are. Yeah. Next slide. Yeah. Okay. Hopefully that should work better. Seems to have galloped ahead. Okay. So that we get started. So as you can see, it's been another strong year for Nykaa both in terms of top line as well as bottom line. And as you can see, the GMV grew 28% in FY24. The revenue growth was about 24%. And given our strong impetus on cost optimization, on leverage benefits which have started kicking in, what it also meant is that the EBITDA margin has expanded during the year by about 44 basis points. And what I would like to add over here, you see something called an adjusted EBITDA. Reason why we are calling this out, that there have been a few one-time costs as well as a few first-time costs. So we had this presentation from Rozita which showcased our foray into GCC. So some of these were not there in the base. So that's the only reason why we are also showing on a like for like basis that the EBITDA expansion has been even, even higher and coming net about 6%. All of this has also translated into strong PBT as well as PAT growth with both of them growing at 80%-90%. And while that was the FY 2024 performance, it's also heartening to note that this is something Nykaa has been doing consistently so both in terms of revenue growth as well as in terms of gross profit growth. As you can see, over the last three years we have actually grown three times. And that I would say is a great performance to maintain consistency over time. And how is it that we have achieved this? Because beyond gross profit, there are various cost optimization initiatives that have actually helped deliver this. In terms of fulfillment expenses, we heard Anchit, we heard Nihir, we heard Vishal, all of them talk about it. So whether it is in terms of reduction in split shipment ratio and in air freight, as far as beauty business is concerned, Nihir spoke about the reduction in leakages and therefore reduction in both RTO as well as cancellation percentages. All of these are meant that fulfillment expenses have actually moderated and significantly shown benefits over the years and especially over the last few quarters. So also we saw about marketing both in terms of improvement in conversion ratio as well as increasing share of GMV from existing customers. Nihir spoke about it. As you can see in the numbers, fashion, while as a relatively new business in FY21, because the repeat percentage was just 9%, that has scaled up significantly and close to 50% now. Beauty is a much older business 12 years in, so obviously the repeat percentages there are higher. But even over there consistently as you can see over the last three years from as a 70% we have continued to grow and it's inching up closer to 80%. So all of these, all of these in terms of whether it is fulfillment cost, marketing optimization etc. has all contributed towards cost optimization and better margins. Then when we look at selling and distribution expenses we heard Falguni earlier in the day in terms of own brands and as you can see the share. Share of distribution beyond the Nykaa ecosystem is something which is quite sizable. It's about a third in beauty and in the case of fashion it's about 43%. Vishal spoke about BD productivity and how we are ramping up distribution on the eB2B front. All of this is something which is offering very well for the future. While all of this has happened, we had invested significantly ahead of the curve both in terms of employee costs, in terms of our office infrastructure, in terms of tech expenses, etc., especially in FY 2023 coming out of COVID and with—sorry, while all of this has happened over the last couple of years, what we have started to see over the last few quarters is the leverage benefits starting to pan out, which is why you are seeing the percentage to NSV starting to come up smartly both in employee cost as well as in G&A. And this is something while we continue to invest both in tech as well as in web. So now a quick look in terms of how is it panning out on the balance sheet front, and there's something which we have shared in the past as well. Coming out of COVID over the last couple of years, we had significant investment in CapEx offices which we had given up during COVID time. They are all back now. We are working fully out of office so there was a significant addition in office space especially in FY23 warehouses as well increased capacity by more than 70% in FY23 and this is something which has helped us get to the customers faster, deliver faster to them as well as reduce our fulfillment expenses. Physical retail stores is something we have continued to expand. We are at 187 stores as we speak while going forward and this is something which you are seeing in FY24 as well while the physical retail stores rollout is something which will continue to juggle on down as far as warehouse costs are concerned. The bulk of the investment is already done. Same thing holds good for office space as well. That is where, that is where a moderation in CapEx spend is something which is playing out and versus FY23 which was our peak CapEx investment of more than INR 200 crore. If you look at FY24 the total spend is down to about 50% of those levels. Now that brings us to vertical reporting and this is something which all of you are familiar with in terms of our verticals where we have BPC vertical, the fashion vertical and others which is predominantly Nykd and this is, this is something which we have been reporting consistently on a quarter-to-quarter basis. One thing which I'd like to share over here is that over the last couple of quarters we have been sharing about the streamlining of business operations which is underway. Nykaa D business, as you saw in Vishal's presentation as well, is something which has scaled up significantly over time. So in a sense it's no more a small, small new business. We have also, we also announced integrating that into the beauty fold by demerging Nykaa D business into Nykaa E-retail. That's something, that's something we had announced last quarter. Our content development company LBB is, is also being merged into fashion and our fashion own brands business of fashion owned brands is fitted into FSN E-Commerce which is a listed entity similar to, similar to the beauty owned brands business which is, which is already sitting over there. So with all of these developments what we would also be sharing with you is a realignment in the vertical reporting to factor, factor these changes which I just articulated. So if you were to look at how this would pan out and for comparative purposes where we are sharing with the realigned, realigned numbers where you will have the Nykd business getting folded into the beauty vertical for comparative purposes, the Superstore. If we were to strip it out, how would that look like? Is something which is there on the screen. Fashion will have LBB which is going in also Nykaa Man, which Nihir spoke about that has got grooming as well as lifestyle. So the grooming part would sit in beauty whereas the lifestyle part would sit in fashion. So and, and in the new businesses what we would have primarily is the international business and GCC business which is the newest of the block which Rozita presented is, is what would sit over there. So the realigned vertical, this is how it would look like and this is what we would be reporting on a consistent basis going forward. One of the other ask from many of you has also been to give visibility up to a beta level when it comes to vertical performance. So that's what we have attempted to do over here and to show how this will look like in FY2024 is what we are showing over here. So broadly, if you look at it, the beauty business accounts for about 90% in terms of top line fashion and new businesses account for about 10%. And what we have done is the overheads have been allocated. In terms of allocation percentage, if you look at it in, in terms of beauty, that comes to roughly about 80% in terms of fashion and new businesses, it accounts for the balance 20%. Primary point to note over here is that fashion is a marketplace model, unlike beauty which is an inventory model. And to that extent the revenue which gets reported is lower. And that's, that's where you are seeing this allocation of overheads so broadly. Broadly on this basis. What this is reflecting is that in terms of EBITDA margin, the beauty business, including Nykaa D would, would translate to an EBITDA margin of about 8.7%. Fashion as Nihir mentioned, is minus 10% giving you the blended one Nykaa number of 5.4%. Moving ahead, a quick look at the balance sheet and as you can see the health of the balance sheet has been only improving over time. So whether it is in terms of fixed asset turnover, working capital turnover, all of that has improved. Improved versus FY23, the debt equity ratio, while it stands at 0.5 in terms of net debt to equity, it is even lower at 0.3. And ROC has also been improving over time and now stands at 7.5% at a Nykaa level. I must, I must just point out this. These are all Nykaa numbers and this includes, includes the newer businesses, fashion, Nykaa D2C etc, where the path to profitability is something which you have seen in the earlier presentation. So all of this augurs well in terms of how the future ROC should, should move from here. Now one thing which I would like to highlight, and this is something we've been talking about is in terms of building value, long-term value for all stakeholders and doing it efficiently with capital efficiency. So what I would like to showcase over here is that Nykaa in its entire lifetime has raised all of $140 million and nothing more. And what have we created with this $140 million which has been raised over the last 12 to 13 years is that we have a beauty ecosystem which includes the beauty.com business which includes own brands which also includes Nykaa ID which is scaling up very well. All of that in terms of GMV translates to about $1.1 billion. We have also built a very successful fashion business which is scaling up really well and which is already about $425 million in terms of GMV and built in less than four years. As Vishal spoke about. We have also seen how the Nykaa D business has grown and the latest is the launch of our GCC foray where you had the presentation proceed. And all of this has been achieved in this 12 year -13 year time frame and with all of $140 million raised. So the point to be noted over here is that strong businesses are being nurtured, created and grown within the ecosystem and a good part of all of this is happening currently through internal accrual. So if you look at. Look at a couple of the larger newer businesses, Fashion, which I mentioned in terms of NSV. It's already up to about $123 million. The total investment to date is less than $50 million, and we clearly believe we are over the hump in terms of losses, and shared the path to profitability, whereas as early as FY26 we are expecting this business to turn EBITDA positive, which again means that the further incremental investments which would be required in this business would be in the range of $12 million-$15 million versus about less than $50 million which has been invested to date. As far as eB2B is concerned, yes, the path to profitability journey is a little longer for no other reason, but this is the newest business and it's just a couple of years old. So total investments which have gone in is about $30 million. And what we expect this business will need before it breaks even would be still less than what has already been invested. So the point to be noted over here is that as an organization we are very much focused on unit economics. I would go to the extent of saying that as an organization we are paranoid on this and what this means is valuable businesses are all getting generated and built with very efficient use of capital. So on that note I would like to take a pause and hand back to Shivani. Thank you very much Ganesh. I'd now like to call upon Falguni to address us about the macro industry overview and strategy going forward. Forward. So, hi everyone. My job has been made very easy by each of the colleagues having come and already told you about each of the business strategies going ahead. So, what I'm going to do here is literally share just very few slides, and they comprise of two main components. The first part is what I call as North Star data points that I watch to know that the company and the businesses are on the right track, and that gives me conviction. These data points are the ones that give me conviction that we as a management team are looking at business in the right way and chasing the business growth in the right manner. So, I'll start with those. You may find many of those slides very familiar because we tend to remind our investors about those pretty regularly. But it will give you a bird's-eye view of how we look at guiding metrics on the industry size. And then the final slides talk about what I see as ambition for each of our businesses and what that means for Nykaa, so really happy that today Nykaa is truly India's preferred lifestyle retailer with 33 million customer base, 138 million app installs, 1.7 billion annual visits across all our platforms, 17 million social followers, which allows us to be both the broadcasting and the influencer machinery. 6,700+ brands listed on all our platforms and growing, 187 beauty stores. And again, you know, each of these are growing quite strongly. 3,250-strong team members and 19,000 pin code service across India. Very soon GCC numbers will start getting included in this. We are at 30%+ online market share in beauty. Even when other external players talk about our share and like you heard earlier, 15%-18% share of the online premium market share in fashion. This is all resulting in a consolidated GMV of INR 1.6 billion in 2024. And obviously coming through four main platforms which includes Nykaa.com, which is a beauty one fashion man and the Superstore. Our journey so far over the years, just to remind you, we started in 2012 partnership with HUL and L'Oréal was, you know, started way back then and it's nurtured all the way till now. And by I mean I won't go through this whole chart because it has a lot, but you can kind of in a summary way see that Nykaa has been busy all through the years adding many things in terms of platforms, brands, marketing, formats. It's been just hustling to me, you know, to make sure that we offer all the ingredients that are very much needed to develop the ecosystem. We call it 360-degree execution. Talking about the industry outlook, I think again, you know I've been saying in the last few calls that e-commerce in India has a long runway for growth. We do believe that our growth will accelerate again. 2022-2023 was a bit of a disappointment with e-commerce growing at 17%-20% against previous growth of 25%-30%. But we do expect the growth to accelerate and we do believe that the long-term growth will be robust at 23%-25%. This is based on external reports like Bain and other reports which endorse this kind of a pace of growth for Indian e-commerce market. Also the reason why we believe in it because there is a headroom for e-commerce penetration similar like it was in China. So if you look at active internet users the number is 800 million. Digital payment users are 350 million. And against this the online shoppers are only 230 million. E-commerce penetration in India is at 15%-19%. Beauty category and fashion category are in that range. But if you look at China it's a 35%-37% and that tells us that similarly the e-commerce penetration in India will grow in that direction. Even if you look at online shoppers as percentage of internet users, they are only 30% in India like I showed you in the top and in U.S. and China that number is 70%. So greater portion of internet users are likely to adopt shopping online going forward. Again, if you look at the BPC market size in 2006, BPC was just a $5 billion market with very limited being online. By 2022, Nykaa worked very hard to create a $3 billion online market for BPC of total $19 billion market that it was, it was about a 4x growth. But what we are excited about is that going forward over next 15 years we think that the growth is going to be 11 CAGR and almost a 5x growth to it being a $90 billion industry. Everybody's talking about how beauty is likely to be the most exciting market. Of course such an exciting market will draw a lot of participants. Participants. But like you saw earlier in our presentation, we have grown with each of the category. Entry of D2C has benefited Nykaa also. So the entire ecosystem entry of imports has benefited Nykaa. International brands have benefited Nykaa which come through imports. So I think the entire ecosystem benefits also are being leveraged by Nykaa. So this kind of excitement in size of industry at $90 billion with almost $40 billion being online and $50 billion offline with Nykaa having play in the entire ecosystem augurs very, very well for Nykaa. And if you were to also look at comparison with China, a lot of people are comparing, you know, China, India today is where China was in 2007. You can see that in the GDP per capita comparison and BPC spend per capita was similar. China was $15-$18 in 2007 and today China is at $40-$45. And today India is at $15. And we have conviction that India is headed to almost $50 per capita consumption over next few years. If you look at GDP per capita in metro cities, I think this is a case in point that we wanted to make. While India's per capita GDP looks low at $2,500, many of our cities like Mumbai, Delhi are already enjoying per capita income similar to China. Similarly, you know, many of the cities like Kolkata, Bangalore, Ahmedabad, Chennai are on their way to higher per capita incomes. So within India there are a lot of cities which have higher per capita consumption. And if you look at discretionary spends with higher disposable income, we are quite surprised to see the way, you know, the penetration of every category is increasing for a long time. All of us who are in the finance sector for many years we have seen that. We complained that there are only 60 very few income taxpayers. That number has also gone up to 67 million. Credit card user number was always complained. All those numbers are going up. Demat account openers. So I think the consumption is getting more and more integrated in the country and this is going to flow to discretionary consumption too. And this is another north star matrix that really excites that to 29 million households in high income by 2013, every 1 in 2 household with high purchasing power. And it's not just futuristic by 2022. This data which is from the World Economic Forum shows us that upper middle class has already grown to about 34% of India's pyramid. And even at the top high income the numbers are growing from 3%-5% and reaching 7% in future. And upper middle income which is at 34% currently will go to another 44%. With these high per capita income, discretionary consumption is bound to increase. So we love the shape of the pyramid that is developing. And finally, the BPC e-commerce penetration in India which currently is at 17% we feel will move to 45% over next 15 years or so to be at a similar level as what it is in China today. And premium BPC also has been underrepresented in India. We talked about premiumization. Throughout our previous presentations we believe that Indian premium consumption is only overall in the country. Nykaa has it higher but overall in the country it's only 5%. China's at 38%, world at 29%. And there is only one way to go. There will be premiumization of beauty in India and Nykaa again will be the biggest beneficiary. So with that what is our Nykaa ambition? So I think you saw that in terms of, you know, I think we heard a lot of investors tell us that give us information up to EBITDA level. So we're going to do it across two verticals, beauty and fashion. And this is broadly the definition of the two verticals with maybe some amount of fashion stores coming up in future, especially the EBOs for our own brands. I wanted to explain one important thing for everyone. I don't think the investor community understands that beauty, I mean fashion contributes 27% when you look at GMV terms. But even on NSV term fashion business contributes 16% of our mix. However on revenue basis it only contributes 9% because we do fashion business on marketplace whereas we do beauty business on inventory less. Most of the Indian finance ecosystem is used to seeing retailers which book it on the basis of inventory led principles. There are not too many marketplaces business which are listed in the market. So how to value the marketplace as a revenue is a little bit misunderstood. If we were to look at revenue composition where fashion represents only 9% in my opinion that is understating the fashion revenue by 7%-8%. Our revenue would be 7%-8% higher should fashion were to be reported on an inventory led basis. That's just one important point I wanted to make. Internally we look at all of the metrics on net sales value basis because that's the only way in which we can compare the unit economics. Also going forward we wanted to just project 5 years out and we feel that fashion will contribute 21% on NSV basis. That is up from 16% in this financial 2024 to 21%. So even with a rapid growth fashion share is only going to go up by 500 basis points from 16 to 21%. So this is good news from every perspective. Fashion is growing, you all should be happy. But we continue to remain predominantly beauty which is what you all want to see. So we will continue to be 79% beauty. And definitely from the perspective of net revenue I think the beauty representation tends to be higher. So if you look at current beauty representation on a revenue basis almost 90% of Nykaa business is beauty. Of course we are going down the ecosystem and everybody believes that some businesses have lower margins, gross margins. We have defied that and we said their gross retention margin in B2B to B2C is good for us and they will only improve. Similarly, we've decided that all these businesses can be done with path to profitability and we've done it in beauty. We've set that example in beauty because of which the entire industry where suddenly, you know, people don't feel that fashion business or electronics business are profitable. Beauty has been built as a profitable business. Same thing can be achieved if done right in other segments. So we want to believe that we will create profitable, valuable businesses in each of the segments going forward. And how will we do that? So if you look at beauty, we will continue to maintain our market share at 30%+ and grow ahead of the market as well as we will maintain margins. This doesn't mean that margins won't have tendency to improve. They will have tendency to improve with all that we are doing. But we want to make sure that we continue to invest, invest those extra margins back into the business to continue to stay ahead of the curve, acquire more customers, do more, you know, more exciting stuff including building our own brand platform so that we can continue to build this business. On the beauty physical stores, we clearly are at 187 stores, largest specialty beauty retailer in India and we are definitely going for a 2x store count in next 3 to 4 years. On the beauty owned brands. We are focused on growing the contribution of beauty brands in our overall beauty business as well as aim for profitable growth. And we want to have a collection of 5, 7, 10 beauty brands that we'll cherish in the long run. Our long-term ambition is to be a consumer brand company in addition to being a retailer. So clearly we want to be both a retailer which is a very fair retailer and is not eating our brand partners' lunch to be successful. But we also, out of all the knowledge that we have of the industry and of the ecosystem, we want to use it to build successful brands. Similarly on Beauty EB2B like Vishal talked about, we do believe that there has been already 900 basis point contribution margin improvement as well as almost 22% improvement in EBITDA over just last 1 year. And I think the same momentum will continue over next 2 years leading to better unit economics for this beauty business. So none of you need to fear whether this business that is going to scale will dilute our earnings. We will be very cautious to keep watching for the right mix. On the fashion front, the fashion NSV will grow by almost 2.5x to 3x over next three years. We've also said, Nihir said it earlier that we will be EBITDA positive by 2026 and very limited investment remains to be made but we will continue to make because all the numbers are known to you. In Beauty we have 25 million customers. Who have ever bought? We prefer two vertical app routes rather than one. We think one app leads to cannibalization. We are big believers in customers being different. We need to give them different journeys, different priorities. Both are very wide. Businesses can't be all clubbed into one we don't like. We feel that if we were to put like fashion and beauty into one app it would lead to cannibalization. So with that logic we have more to do in fashion where currently we've ever dealt with 6 million customers and that number will grow to similar to where beauty is today. And along with Fashion.com we'll also support Nykaa Man. Similarly on the fashion owned brands again similarly Nykd has grown. There could be more brands out of fashion also that can have a journey of its own. Some will be in western wear, some in ethnic wear. So there'll be more excitement there and everywhere they could be build or buy model. And finally on GCC, you know, you know we think that this year alone there will be about 5 stores and Rozita talked about the, you know, the KPIs of the current stores and I think the revenue in 2025 itself I think could go to $10-$15 million. So the business there can get very quick scale. It's a great market with high per capita income and we've had the successful launch. The product market fit has been seen. A lot of brands are excited about being on our platform and I think that gives us confidence that we should be able to achieve our business ambition in this market. With that, thank you for today. Thank you so much, Falguni. We've heard from all of our business today talk about how they leverage a lot of technology to bring to you solutions on the consumer insight to make sure that our consumers have the best possible experience there. I'd now like to introduce you to a Chief Technology Officer, Rajesh Uppalapati. Rajesh has over two decades of experience building world class products, platforms and services for large scale organizations as well as startups. Over to you, Rajesh. Thank you, Shivani, for the generous introduction. You have been doing a fantastic job today. Good afternoon, everyone. I am Rajesh and I'm here to share. It's been like what, 20 months since I joined Nykaa and I thought I'll use this opportunity to share my learnings from this awesome journey so far. Let's see. I hope there are no technology glitches. Okay, so let's start right away. I love this quote. This is by a mathematician and a data scientist because the analogies are like, you know, really perfect between data and oil. Just as oil is a key resource to fuel growth, data is also very powerful. The catch though is just like crude oil, we need to refine and process to generate the right insights and then magic starts happening. So Anchit has beautifully, like, you know, laid the land. He specified how we have 12 years of rich customer data. Let me try and bring it to life on how we are leveraging this oil and essentially like taking the crude oil and converting it to a high grade rocket fuel propellant. The 12 years of data is allowing us to study our customers very closely and very deeply and a lot of things can happen. Let me bring the whole thing to life with a simple example on what we are building. For the first time, we are looking at customers in a very different lens by mapping them to what we call as their life cycle stages. So I mean, life cycle stages can come in like, you know, much more micro home stages. Just to like, you know, simplify things, we have five such life cycle stages, starting with a new customer, to becoming unsettled, then becoming settled, and eventually like, you know, becoming loyalists and advocates. Now what we are realizing is when we start looking at customers by their life cycle stages, we are able to see very interesting patterns and how their behavior changes, especially as they graduate from one life cycle to another life cycle. For example, customers who are more loyalists and advocates. I think the occasional delivery slip doesn't seem to matter at all on how they interact with our platform. Not that we want that to happen, but I'm just sharing the kind of insights we learn now. The second thing is the moment you start looking at customers and behaviors and you have this rich data, you are also able to study what are some of the successful journey paths that customers are taking to graduate from one life cycle to another life cycle. And when you study this or lots of data, you are able to actually identify the most efficient paths that customers can actually take to graduate. Now why is this interesting? Because now that we know that customers, when they graduate, their behaviors also change dramatically, including how frequently they purchase the size of their baskets, the frequency of purchases and all that. And we also know the journey paths. We are able to build sophisticated machine learning algorithms that recommend the precise next step a customer can take to graduate in the life cycle. We are also able to build like a smart rewards engine that gives the most optimal reward for the customer to complete that path. The whole thing, like, you know, I tried to create a simple visualization. It's. It's pretty much like a snakes and ladders game. As you can see. Like, you know, these are various journey paths. And through the journey paths, there are definitive actions that our data tells us that if they take, their chances of going to the next state are higher. And there are what we call as dynamically created incentives that act as the ladders in the snakes and ladders game. Obviously, like, you know, any negative value action, like failed deliveries or like, you know, a bad returns experience could be the snakes in the game. And this is something we are building as we speak and we are super excited about it. Personalization is a very, very big theme. Over the last 18 months, we have made some big strides in it. What you see here is a combination of multiple personalized recommendation widgets across fashion and beauty. By the way, recommendation widgets is one aspect of personalization. There are a lot more things that we do, including personalizing display banners, CRM search results, and so on and so forth. But I thought I'll share a good success story on something that we have been working over the last 18 months. Let me speak a little bit about a couple of these widgets so that I can bring to life what goes behind building a widget like this. If you see the, the top left side, there is a widget called Handpicked for You. It is essentially, there is a lot of machine learning going behind it. The way the algorithm works is very simple. It uses a powerful technique called collaborative filtering. Let's say I, as a consumer, like brand and category combination of A and B. Then the algorithm looks at a cohort of consumers who are similar to me and like the same brands and categories. Let's say this table to my right is such a cohort. Now, within that cohort, it again finds like, you know, what are other brands and categories that they share as common interests, right? And then it starts recommending to me those brands and categories. And, and once you do that, more often than not, customers start discovering new brands and categories that they might like. The widget right next to it in the middle is called Explore Your Favorite Brands. It is actually one of our highest performing widgets. It uses altogether a completely different machine learning technique. We have lots of data like we spoke about. We build what we call as a probabilistic machine learning model. We essentially pick an outcome like I want this widget to maximize chances of a customer adding something to cart. And with that objective we train it on lot of data. We look at past historical data of customers, browse behavior on the app, whether it is searching for a product, viewing product detail views, whether it is adding to their favorites, adding to carts. We take all these actions and then we look at it in relation to the time. For example, someone might have added something to their cart one week ago, but they might be browsing something more recently. We try to understand through a machine learning algorithm what is the relative importance of each of these actions in relation to time. The machine learning model spews out what I call as an optimization function so that when the customer next comes on the app, based on the browsing history, we are able to predict the categories and brands that they are most likely to interact with and eventually add to cart. I will just share one more example to show how nuanced and different these techniques are. If you see on the left bottom there's a nice fashion widget called Similar Products. It's one of my favorites. This widget actually is on the details page. Interestingly, it is not a personalization widget at all. Because you're deep in the funnel, you have shared your firm intent that this is the kind of product I am interested in. It doesn't matter whether you're a new user or I know about you for more than a year, we want to latch onto that interest. Here what we are doing is we are taking the image of the product the customer is currently viewing. We are representing that image in an N-dimensional vector space. We have already taken our entire catalog and represented it as a numerical. Then we have algorithms to find based on image recognition, what are the nearest neighbors. For example, if I am seeing a very floral platinum dress, even if there is no mention of floral in the catalog, this algorithm will find similar patterns visually and then start recommending those widgets. In a nutshell, these algorithms obviously take time to learn and perfect. But the good thing is like, you know, as you start investing, you start seeing such awesome results. You can see both on Homepage of Fashion and Beauty, there is a steady improvement in the click-through rates and it's only going to get better, I can promise you that. Okay, let's move to the next learning. So we all are aware that to create a good two-sided network, the interests of both the parties have to be very well balanced. And typically if you want your partners to succeed on the platform, there are three undeniable truths which if we cater to, there is a high chance that our platform, our partners can succeed on our platform. Partners can come in multiple shapes and sizes. One size doesn't always fit. How well your product solutions for them cater to the diverse partners is going to be very critical. Can you share the right data and insights that are meant to be shared with them to succeed on the platform? And the third thing is, can you give them self-serve tools that will empower them to control their destiny on the platform? Let me share an example of how we are bringing it to life using our ad tech platform. As you can see, and we have spoken about this last time as well, I think our ad tech platform has ad formats that cater to all three needs. We have display ads on homepage which talk at an awareness level. Then we have again display ads at our category pages where they are more getting into the consideration set for that particular category. Then we have also launched what we call as PLA ads right deeper into the funnel where you can see them on the search listing and category listing pages. Not only that, we have pricing models whether it is CPM or CPD, cost per day or cost per click, and we are essentially taking care of partners with varying needs through this. We are also sharing very powerful insights for them to be successful on our platform. Now if you can see that like you know we have just masked out some of the actual numbers, I hope you can understand. But what I like about these insights is like, you know there is a good amount of customer empathy. Customers here being our brands, and if you can see, for example, we are showing to them some of the highly searched keywords which are currently having less competition and might be a great opportunity to bid on them and leverage. So this is just one such example on how we are sharing insights to our partners to make them successful. I also want to clarify about self serve. A lot of effort has gone into making our platform self serve, right? From creation of an ad campaign to managing your budgets and then reports and eventually insights that we just talked about. They are all available at the fingertips of the advertisers through self serve. And building an ad tech platform is a fairly complex engineering problem because there is a real time aspect of it. We are actually processing hundreds of thousands of events near real time and we are taking decisions on what's the budget available for an advertiser, how are customers interacting with that particular ad and how do I re change what ads I need to show? All of these decisions need to happen in sub-milliseconds and we have to use complex machine learning algorithms that optimize for multiple, and sometimes even conflicting priorities. There is a consumer's relevance to be taken care of. There is a brand ROAS to be taken care of and there is a marketing income as well. And that's the challenge that goes behind the curtains. Okay, the next one is my favorite. How do we? I think Ganesh briefly talked about creating scale and leverage through your investments. I'll talk about, like you know, how Nykaa's technology stacks that is creating the leverage for us. But before going into that I want to briefly talk about our Nykaa platform and the apps. Nykaa technology has been built and perfected over years and there are few things that differentiate it given the fact that, like you know, we have been working on these tech stacks for multiple years. The first thing is what I call as resiliency engineering. It is not easy to take a plethora of services that need to be highly available and at the click of a button make them scale for 10x traffic, 20x traffic, and 50x traffic. It seems simple and trivial, but a lot goes behind in terms of how you partition the data, how you define your architectures. We are proud to say that our technology stack scales with a mere push button by adding off new instances. There are a lot of platform services that are built like the catalog, the identity service, search, and so on and so forth. Then the second part is some of the consumer facing features that we have iterated and built over the years. Whether it is the Nykaa stream or we have talked about the ad tech platform or all the personalization and discovery widgets that we have built and learned and iterated over the years. Those are all strong assets to us and our belief is consumers are more similar than different. Of course there is an aspect of localization and local geographical nuances and with that spirit we want to take the Nykaa technology stack and start offering it to our partners. Strategic partners we are. Nihir already spoke about Foot Locker launch and how that selection is going to be available on Nykaa Fashion Nykaa Fashion Foot Locker is also launching an independent website and app in India and it is going to be on Nykaa's tech stack. So all the goodness that we just talked about will be available for Foot Locker and we are also considering leveraging this stack in the future for Nysaa. We believe like you know, obviously as part of taking our stack and offering it to like, you know, some of our partners, there are additional investments that we need to make in terms of making our stack compliant with the local laws, data privacy and stuff like that and even localizing like you know, and adding multilayer language and multi currency support. But we believe that the goodness that comes off it makes it a key strategic investment and overall improve our tech leverage. Okay, controlling your destiny I think today morning Anchit has beautifully set the tone. He touched upon quick commerce and how it is really redefining what we call as the norms in terms of convenience. What we have also realized is that delivery speed is going to be a key differentiator. Anchit has already clarified how we are expanding our warehouses so that we can deliver to customers very fast. Let me share my side of the story from a technology perspective. Before last year, Nykaa's warehouse management system used to run on a software called eRetail that is owned by Vinculum. We realized the need to control our destiny in areas that disproportionately impact customer convenience and we made a big move to in-house that entire software. It was a massive undertaking but I'm so happy to share that like, you know, now the warehouse management is in-house. I have my own engineering and tech teams that are working on it. We'll talk about some of the things that we are doing. To begin with, we are investing in housing the forecasting algorithms very early days. We have built a model and it is already outperforming the existing model. We are going to invest in three other areas now that we have in-house this entire warehouse management software, starting with what we call the allocation. Allocation is essentially the process of taking a customer order and deciding pseudo real-time which warehouse will I allocate it to? How will I split the order? Should I optimize for shipment speed or should I optimize for shipment costs? And this has a direct relationship to how fast we deliver as well as our unit economics. So we are investing a lot in redefining our allocation logic. We are also taking it a notch above and investing in improving some of our algorithms on how we do putaways when inventory comes into our warehouse so that the most popular products are easily available to the pickers in the warehouse so that they don't have to travel the length and breadth of the warehouses. We are also doing optimizations in the way we pick by taking into cognizance the cutoff times of carriers so that the packages that need to be sent to a particular courier are picked in a certain order and they meet the cutoff for the date. We are also investing in terms of picking the right courier partners based on their availability, their performance metrics and so on. All of this is possible because we could make the strategic call to in-house warehouse management. Okay, the last one, embracing external trends. I'm sure, like, you know, a lot of you are waiting anxiously. Over the last two decades there have been numerous technology seismic shifts. We have witnessed most of them, and there is one that is happening right now. It is more real than any of the other trends we have seen, like you know, Metaverse or crypto and stuff like that. That, and that's Gen AI. So we'll talk a little bit about it. But one thing I wanted to share as a learning is you could dismiss some of these trends, you could pretend as if they are not happening or they won't matter to your business, but you're doing it to your own doom. I think you are better off adopting them, embracing these trends and making them as tailwinds for your business. The sooner you do it serves your business. So I'll quickly share what we are doing in Nykaa. First of all, it's similar to the San Francisco many many years back, the Gold Rush, right. Like everyone are jumping on this bandwagon. There are also some flip sides around Gen AI. Obviously like you know, it comes with heavy computational cost. The language models make the explainability very opaque. I get a result from ChatGPT but good luck explaining like you know the source of truth for that recommendation. Right. And then there are privacy concerns as well. So we have taken like a three-pronged strategy or a principled approach towards embracing this trend. First, we wanted to obviously be very, very close to closely tied to everything that is happening around us. Number two, we wanted to stand on the shoulder of giants. And that's a very important tenet given there is so much ML work that is already happening on the data to build some of the things like the customer state machine. We thought like we should partner with the Googles and the Amazons and the Microsofts of the world and very smartly leverage what they bring to the table and innovate on top of that by bringing our own expertise. So that's what I mean by standing on the shoulders of giants. And the third one obviously is run low cost experiments. So if you see here in terms of the gen usage, you would see like, you know, most of the applications today that are bearing fruit are largely around productivity, conversational AIs, chatbots, content generation, having copilots like coding Copilot that will help the developers while they're coding. I want to share very quickly like, you know, how are we like operating or where exactly are we dabbling our hands on? So we have picked the four core themes and you can see our partners to the left, the giants that we are standing on. We have made some progress on all these areas. We are doing interesting pilots by the way, I have a couple of interesting demos as well that I'll show to you. But yeah, we are being very surgical as well and I'll share like. So we are doing things in the funnel itself to improve conversion. We are doing stuff obviously to generate content and improve our catalog. We are doing a bunch of stuff that enhances developer productivity using Microsoft's GitHub Copilot and we are also doing what we call as a sales coach assistant. I'll share a demo of it and then we are getting into conversational AI as well. So let me not waste any more time and walk you through what exactly we are doing. First, let's start with some of the things we have done on the shopping funnel. Again, you would notice these were all done as low cost experiments. They were done very surgically and they are actually happening on the shopping funnel in a way that doesn't intrude the core shopping behavior of a consumer. Because we have learned from the Swiggy's and Myntra's that whenever you do something that is radically different like a fashion GPT or a fashion assistant in the core shopping funnel, at least now consumers are feeling a little distracted. So I'll start with the one on the bottom right. The catalog enrichment. Very obvious. This is a classic case of content generation. We are using Gen AI LLM models to look at an image and extract attributes out of it, especially the key attributes that you see there like the pattern, occasion, the collar type, neckline. We are seeing 80% accuracy. And overall we measure RSS in terms of the feed turnaround time. Right. So we get a feedback from a seller and we have to take it live. We have been able to shrink the time to take a feed live by almost 30%. The second one is right above it. Pair It with ChatGPT. So this is something done using what we call as prompt engineering. So let's say through all the ML artifacts that were built, we have been able to say that a particular stock is something that the customer is interested in. Now what we do is we go and extract all the attributes behind it. Then we do a prompt engineering where we frame a query to ChatGPT saying, "Can you give me the bottom wear that goes with a top that is a western wear of this color, this neck type, this color type. And then the ChatGPT gives a response and then we take that response and then we reformulate it as a search query and we find matching products. Now we have done this in a very, very short time and we have done some manual QA of the results and they have been very promising. Almost in 70% of the cases the results are actually very good and we are actually running an A/B test as well to see how consumers interact with it. Onto the left is another example where for one specific category we experimented taking consumer reviews and creating themes on what customers are talking about and then elevating those themes as search filters. And again like you know, we saw like you know, good impact from it. The cart to order has improved by almost 3.4%. So with that we are coming to the close of the presentation. I want to leave you with two interesting demos. One that is directly like, you know, talking to our top line. Let's see. So on the left side would be the way the current search works. Let me actually start by highlighting the problem statement. There are these regular search queries like you know, like you are searching for a certain western wear and then there are what we call as these nuanced search queries, right? For example, searching for dresses for a haldi function and it requires a lot of semantic understanding of the query to pull out the right matching results there. And if you can see right on the left side is the current results and the right side is where we are headed to. By the way, this is not a fake demo. We have built it and it is all working and we are going to take it to production very soon. So we are first showing it on fashion. This is the healthy output results. Now we are picking a beauty example, right? Anchit has already mentioned how the search for beauty is evolving into distress and condition based. People are beginning to search like you know, for more nuanced queries like I have a skin psoriasis condition. What kind of products can you recommend? Now let us go and see like you know, what have we built? This is in close partnership with Google. I'll exactly share what Google has done and what we have done to bring this magic. This is a real demo happening on real catalog on our pre-prod instance. You like the results better, right? Okay. Okay. So w hat is the magic that is happening behind the curtains? I think the first thing to remember is we have built in house technology to take any product in our catalog and represent that as a numeral. What I mean by that is all the attributes in the product are collated and we represent it as a vector in an N dimensional space. You can see there right in the slide, it clearly highlights how you take a product and if it has 10 attributes, each of them represent a dimension. Now we have also built algorithms where if I give one product, it translates that to a numeral and then it goes in my catalog and it does a spatial search to fetch all t he close by neighbors. And all of this works in milliseconds. And this is the technology we have built. Now where does Google come? Google obviously is a giant in terms of understanding search. They have millions of queries that tells them that range of people have searched on Haldi outfits and they eventually end up clicking mustard and yellow colored dresses. And obviously those dresses also can be represented similarly in an N-dimensional space. Now what we get from Google is these additional attributes that we can use to enrich the exact same items that are all yellow and mustard in color. And once we get these enriched attributes into our catalog, the same search now starts getting more and more powerful and start bringing out the semantic nuances. So now you can start searching by conditions and distresses and whatnot and all those are encoded in these numerals and the search starts picking those up. With that, let me, I'm coming close to the presentation. I'll share the second demo as well. So this is where we are investing in a productivity tool. And again like you know, this is a prototype that is actually working. So what we are doing here is we have trained a model on our beauty advisors' data where they are coaching the beauty salesperson on how to make effective sales in the stores. We have taken a very bare-bones, like you know, 8-10 recordings and we have built a basic model and even then it is extremely powerful to see how well we are able to create a bot that mimics these customer role plays and coaches our sales team. Let us see the demo. Hello, can you help me please? Hi, welcome to Nykaa. How can I assist you today? Hi, I'm looking for some products from Cetaphil for my sensitive skin. Can you help me find them? Of course. Cetaphil has excellent products for sensitive skin. What particular concerns do you have regarding your skin? I often get redness and irritation, especially around my cheeks and forehead. I'm looking for a gentle cleanser and a moisturizer from their range. Alright. I understand sensitive skin can be tricky to manage. Let me show you some Cetaphil Products specifically designed for sensitive skin. Hmm. Okay. Also I need sunscreen from the same brand. Can you recommend one that won't irritate my skin but still provides good protection? Of course. So this gentle formula from Cetaphil is perfect for sensitive skin as it contains smoothing ingredients. Follow it up with lightweight moisturizer that. Calms and hydrates without causing irritation. For sunscreen, I would recommend their sunscreen which is non-comedogenic and formulated for sensitive skin. What about allergies? I have a mild allergy to fragrances. Are these products fragrance-free? Absolutely. These products are designed for sensitive skin. Would you like to try a sample of these products? I can also demonstrate how to use them. Yes please. I would love to try the samples first. Can you show me the correct way to apply them? I think you get the idea. I think if we take a pause and think about the future possibilities of what this can do. A. As we train with more richer data, the bot starts simulating infinite role plays based on the Persona of customers. And we are building what we call as an assessment module. So right at the end of this call, the... The LLM that we built actually does a scoring and it tells how the salesperson performed on various dimensions. Once we have that, the salesperson can obviously improve upon it and then we can get them ready to the store. Not only that, as new products come, we can start building refresher courses, educate them on like new products, formulations, routines and stuff like that. The next logical extension of this, we want to use this bot to even help in terms of interviewing. We also want to try it out for our B2B business. I want to very quickly touch upon a couple of things we are also doing in the store. Apart from the sales coach and a lot of these, we are actually working with third party vendors. There is a tool called Squirrel Vision which uses advanced image recognition techniques and we are partnering with them. Their technology helps look at the videos of customers and tracks their movement and it creates a heat map of the most sections of the store that these customers are moving. Once we have that data, we can totally optimize the layout so that the right assortment and the right marketing collaterals are placed in the right areas. There is also one more use case we are evaluating with them is to look at use image recognition and look at a certain aisle and a section of a store and figure out if there are any assortment gaps. Yeah and we already talked about the skin analyzer. These are all some of the things that we are doing to embrace external trends. With that it brings an end to my presentation once again. To summarize, it's been a wonderful, wonderful journey. It's been a privilege to be part of the Nykaa team and thank you all for this opportunity. Thank you so much, Rajesh. A lot of those demos were fabulous. To understand really how we can optimize search while using Gen AI, I wanted to now call upon Surendra Mehta, our Chief Human Resources Officer, to take us through our ESG focus. With about 20 years of experience in the industry across India and global operations, Surendra, if you would please join us here to take us through our ESG strategy. Thank you. Shivani. I was telling Rajesh you made my job a little difficult after all the exciting stuff. But you know what? I, I quite like the Pair It one. Imagine we could search spouses with Pair It. We could search candidates on your platforms. That's what we spoke about the other day. Good afternoon everyone. I know I am standing between very exciting coming up Q&A session and lunch followed by lunch. You know, in, across forums, outside when you go and meet people, one of the things which is often spoken about particularly in the talent market is people love to be part of organizations which have larger purpose, which do beyond businesses. And my experience in Nykaa in the last three plus years I've been around is this company believes in not only doing great businesses, building sustainable businesses, but doing them very responsibly. In many ways the ESG strategy of Nykaa is in continuation to that in terms of building it responsibly and to do good governance. So in the next few minutes I'm going to walk you through few glimpses about this theme as ESG. This is a theme as we all know is has become very, very critical across the world and a lot of progressive work has started to happen and I'm very happy to share that. You know, we also as a young early stage company have made some good beginnings on this. But before I go, let me begin by drawing your attention to our values and values as we all know are what define our cultural fabric of Nykaa. Particularly when it comes to ESG, these values become our guiding this thing. You know, if you, if you look at the picture of their values. So it's be bold, be good. I think we like to do bold business decisions at the same time being good, like doing business in a very sustainable way. Every action and you heard across whether Falguni was speaking Anchit was speaking Nihir and everybody that making sustainable decisions of doing business and the last one is a belonging culture. I think in the ESG regime, being able to do things which are very inclusive and make it in a very belonging way starts to make organizations really admirable. So if you look at on the right hand side of the screen on both our platforms, whether it is fashion or beauty, you will see Nykaa is being very aware about onboarding responsible fashion brands, almost 600 of them. Or it's on the beauty side of it with the consciousness towards clean beauty. 150, 150 brands. What I feel very good to share with all of you is that last year we partnered with a company called TÜV SÜD which is a global agency which does certifications and is an expert in the area of safety in the area of certifications. And we have for FY 2024 with respect to our BRSR assurance review, we've got them to certify, certify us already. So while we don't fall into the category of high environment impacting businesses, but happy to share with you, whether it is in the area of building, you know, sustainable packaging or in the area of plastic recycling, you know, we've been making very good progress in the last few years and I think we feel very proud of making those beginnings. You know, Nihir, some time back did the anthem with you in terms of staying stylish. One other secret about Nykaa is that Nykaa does very, very effective and very good coordinated dance whether it is inside or with our ecosystem. So what you see in this slide is a very wonderful ecosystem where we are trying. We work with a large supply chain partners, a direct indirect employee, strength of 11,000 plus network of influencers, creating economic opportunities not only with influencers but also in the large physical retail state retail setup which we are trying to do through Superstore. We do believe that as the journey of ESG commences, I think this ecosystem will work with us in a very effective way to make not only what regulation requires as of today, but I think as you know, the definitions of regulation for listed and for well governed companies goes in advance. I think we feel very proud that having built wonderful relationships with our ecosystem, I think we'll be able to leverage it to advantage of even doing our ESG objectives in a very targeted way. Moving on. This is my favorite slide. I'm sure many of you attend other organizations in terms of their practices and how they are. So if you look at this slide, it gives you very clear indication that how Nykaa is well diverse, whether it is respect to demographic of the workforce. But more importantly, you know, a lot of focus in the last, I would say 10 years or even more has been on gender mix. I think I feel very great about the fact that when you look at the Nykaa, starting from the board right until rest of the organization, you see a very, very healthy mix. You know, a few quarters back we had, I think, one of our investor firms reaching out to us that we're really keen to understand whether some of the numbers are flash in the pan or is it really a deep dive? And we walked them through and I took the opportunity to build that slide into it. So look at our gender balance. Whether you look at people who we are hiring now who are less than one year in Nykaa or for people who are two to four years, you see a very, very healthy mix. Organizations have an aspiration to reach these kind of numbers and Nykaa is really, really up there. Another important topic in the area of social and governance comes, you know, gender pay. You know, Rajesh spoke about, you know, being on the back of the large ones. This is an area where the zone of tolerance of gender pay equity is considered to be less than 5% here. Very happy to share with all of you. At Nykaa, we manage this really, really objectively meritocracy-based and with a, with a clear focus on not, not having gender bias. Our pay gap is ±1% within ±1% much, much superior to what even the global zone of tolerance is. So I think you'll be very happy to know this. I think a lot of international investing agencies asked this question to me many a times and we share with them. So very happy to share with you that now as when you do good work, I think recognitions come by and in the last year, not only LinkedIn on their own basis, their own research ranked us as a workplace where people are growing, also Economic Times with respect to, you know, preferred workplaces. So thank you for all the support not extended by everyone here. Moving on. So while I spoke a while back about, you know, a lot of the stuff which has been happening with respect to essentials we are required to do on ESG, we've also started doing a lot of internal self audits with respect to energy emissions, the way we consume our water, you know all our offices which we you know Ganesh was sharing about a lot of infrastructure created how we are investing in them being energy efficient and stuff like that. But what I feel also great about is that you know in our CSR initiative we've been able to do in the last few years very very meaningful engagements in the CSR area. We've chosen some areas where some key themes where we want to make impact and it has been around in the area of skilling and education bringing livelihood and you know particularly working with the marginalized and underprivileged one. So what you see on the screen right now is an entrepreneurship. Sorry. Yeah, so what you see is our association with IIM Ahmedabad in terms we've had. I had a chair there and it is to foster innovation. We are working with them. In the last one year this relationship got further by organizing hackathon, organizing some panel discussions and I think the institute is working very closely with us to take this agenda forward on transforming education. You know we partnered with Rangeet. I think it's very credible for progressive organizations to make sure that how we are investing in future generation. So almost 20,000 + children in the age group of 7 to 16 in the state of Rajasthan. With the help of Rangeet we've been able to inculcate education through this program of SEEK where it is about sociological, ecological, environmental through an app-based program. And I think it's making a to make them holistically very very well groomed children is happening, transforming lives. I think this is again 800 women. We have six centers in the country and very happy to share that lot of underprivileged women who are being trained. Not only there is skilling happening but it is skilling to livelihood. So and we believe that we will be taking this program forward further even trying to see if the agency can get people from economically weaker sections and districts as defined by the governments. And I think we'll be sharing updates as we go along in the subsequent years. Recently very happy to share because focus on developing women. Recently Falguni got recognized at the American India Foundation and we've announced an initiative where Nykaa would want to work with AIF to furthering the agenda of STEM as an area. I think we'll be. I think we'll have more updates to share as we go along in this journey continuing and this is my last, last slide: Focus on Children's Health. This is a collaboration with an agency called Anushka Foundation where not only we are helping treat—I think we've treated already more than 100 children with respect to clubfoot—but also at the same time skilling doctors to do this better. The uplifting of women initiative. I think, too, I'll pick it up here. You know, Beauty & You. We've done two stellar editions of our partnership with Estée Lauder in terms of again finding new generation of entrepreneurs who will work in the area of beauty and innovation. I think we've had two and I think the additions have brought in that people are really thinking of very different ways whether it is makeup or skin or fragrances and I think many innovative ideas people have there and we are looking forward to some of them. Flourishing. Flourishing. Big the last but not the least. I think this is again in the area of uplifting communities where it's been a couple of years of our association with the Indian Deaf Cricket Association where we sponsored where again you know, women from underprivileged and you know, tier two, tier three have been coming forward to express their area of passion and this is what we really have, you see that has been really appreciated by some of them. So, I think I'll end here only to leave you with the fact that good business being done in a being bold and being good way and more to share with you all as we go along in this journey of building a very robust and a forward looking ESG focused organization. Thank you. Thank you very much for that, Serene. I feel like that was also a great reminder in reiterating that we're not just a retailer, we're here to serve not just our consumers but entire communities at large. We now this brings us to the end of our presentation session and we're now going to set up for our Q and A panel. While we set up for the panel we'll take your questions and try and answer all of them accordingly. Post which we will break for lunch. All right. Thank you so much for being such a patient audience and listening to all of the exciting updates we wanted to share with you. We are now going to open the floor for questions. Please raise your hand if you have a question and our team on ground will come to you with a mic. I think we have a question there. Could we get a mic over there please? Hello. Hi, Percy from IIFL. Firstly, thanks a lot for this wonderful presentation and all the useful data information you've given. It's really very helpful. My question is on the common cost. This year the common cost growth. At overall company level has come down. To a very reasonable 15%. Surely for the India BPC business it. Would be even lower at maybe, I don't know, 10%-12% approximately. My question is this, that even. If we have a flat contribution margin for the BPC business, and I'm excluding. Superstore and other beauty businesses here, just. Talking about BPC, even if the contribution margin is flat, assuming a low double-digit growth in the common cost there. Because it's a mature kind of a b usiness, should we not be seeing expansion in the EBITDA margin for the India BPC business? Yeah. Actually, in the retail, I mean in beauty business, the retail businesses do need investment in stores as well as which results in depreciation. There is also the interest cost that is involved when we, you know, obviously, the store rollout has a different inventory mix compared to e-commerce. So, I think it's very simplistic to assume that there will be definitely margin expansion. I think our beauty business was quite tightly run. In fact, we are making investment in terms of adding more management bandwidth to the business. So, I'm not saying that the overheads will grow faster or slower, but I think to assume that it will definitely result in EBITDA margin improvement would be a wrong assumption because it's a mix of the accelerated store rollout. We are also premiumizing our stores in terms of going for more what we call, as we talked about, flagship stores. So I think the investments we're going to continue to make, but yeah, manage it well rather than trying to reduce it. Okay, that's all from me, thanks very much. Can we get a mic over here please? Sorry. Hi, this is Avi here from Macquarie. I just wanted to kind of take in that margin question a bit, but I think you, you know, rephrase it with what you've already disclosed now. Sorry for that long, but if y ou, if I look at it from an explanation perspective, you're looking at beauty now as Superstore plus beauty only and we've done almost about 8.5% margin or so in the current fiscal. You've given us a trajectory of what i t can be as we move into s ay three years, four years down the line. Would you be able to share some understanding of how should we look at it from a overall beauty EBITDA margin? Because we only have the Superstore here, so clearly there's some benefit that will come in from that. Is there an overall number that you c ould share for us for the beauty s egment itself in the new disclosure norms. No, I think it's again very simplistic view because the beauty margin is a combination of e-commerce, physical retail, B2B growth and also private label and also private label profitability. And as a result, you know, and like we have always said from the beginning that we don't have any mix composition in mind. We are allowing each of the businesses to grow at the pace that that business justifies and can sustain because of the size of their current scale and the opportunity that is available. And as a result the mix is far more difficult to predict rather than the individual components. That's why we went deep dive so much today to give you components of each of our businesses and give you a very good feel of what those components look like and try to show you the discipline with which we are building each one of them so that there are no fears of some excessive spending in any of the environment. But we are managing like both verticals, beauty and fashion, extremely complex vertical with underlying, you know, 3-5 segments making up that vertical. No, but in the beauty only, Falguni, that 8.7. Do you think that can, that should logically move up, say, three years? D own the line or two, given that y ou're expecting the eB2B itself to do 2000 basis points expansion at the EBITDA level? I think the worst of B2B in Q2 beauty margin maybe behind us is all you can say. Yeah, okay, okay, maybe I can, maybe I can expand on. Thanks. So look, I think if I look at before the reclassification of the segment to include BPC to include B2B, it was predominantly the online plus offline beauty retail business as well as our own brands business. R ight. We had historically disclosed what the contribution margin was for the BPC vertical prior to including eB2B in that segment. And you know that that number was roughly mid-20s, 25%+. And you have a good sense for what our costs below, you know, below contribution margin are. They're mostly just overheads and employee cost and you have a good idea of what that could be. So I think there is very healthy, our beauty retail and beauty owned brands business have a very healthy EBITDA margin profile and it's the eB2B business which currently is EBITDA negative. So as the eB2B business continues to improve its profitability and given that the eB2B business now sits inside of the BPC segment as a whole. Theoretically, yes, of course, the overall EBITDA margin could improve because there should not be any dilution to the EBITDA margin of the erstwhile BPC businesses. I hope that helps to answer your. Question that clarifies clearly. But I think to Falguni's point, it's also a mix. It's also a mix thing. B ecause if eB2B grows faster than expected, even if it continues to improve its profitability faster than expected as well, if it starts to contribute a larger percent of the total revenue to the BPC segment, then the consolidated level of EBITDA profitability improvement may look slightly more muted than it would have looked had the B2B business grown slower. If you understand what I'm saying. All right, got it. No, fair enough, fair enough. Any timelines on by when do you expect this to be break-even like the fashion? You've given us a very clear trajectory for the EBITDA to be any expectation. I think we don't like to do is really do what we call as you know like stargazing or pie in the sky kind of this thing. So what we try to give you today is what we are confident about. So if we could stick our neck out on fashion but in B2B we've given a path which leads to much more improved EBITDA but not yet at the breakeven level. Got it. The next question for Ganesh from a CapEx perspective. Now with bulk of the CapEx behind us, what are the, what is the level that we should kind of look at from a consolidated basis given that the new businesses, I'm not sure if they need any support. So any number that you could share with us over there? Yeah. So if you look at CapEx and as we saw in the slide a while back, the peak CapEx happened in FY23 which was upwards of INR 200 crore. And in FY24 we already seen it come down to less than half of the FY23 levels which is indicative of the fact that our investments in terms of new stores, rollout etc will continue. But some of the catch up investments, especially when it came to warehousing, when it came to office space etc, that I s BS behind us? So what the shift we are seeing between FY23 and FY24 is indicative of what to expect. So 24 would be the more steady state number. Yeah, you could. Say that yes, there will be some incremental investments which will still go into warehousing. Offices more or less done. Stores roll out. We are at 180, 87 stores and over the next 3 to 3 years, so thereabouts we are talking about doubling the number of stores those parts will cut. Okay, that's it from my side. Thank you. If you could pass the mic on to the man behind you. Hello? Yeah, hi, good afternoon, this is Harith from Investec. Yeah, just one other point I would like to add is that we have a majority stake in Dot & Key over the course of this fiscal. The balance acquisition is also something which is likely to come underway. So in terms of capital outlay, while it is not CapEx per se, it will be more of investments. Yeah, hi, good afternoon, this is Harith from Investec. O ver the last two quarters you've mentioned that contribution margins in BPC are healthy. In an endeavor to grow the market. Y ou would like to reinvest. But last year was a year also where ad income did not grow at the pace at which it normally grows. Also you had discounting, etc., which was there as well. In a normalized environment some of those factors start to improve A d income starts to grow, which is a huge positive for EBITDA. Discounting probably over a longer term would reduce from what it has been s o in the context. Is the commentary here that? There will be a further i ncrease in advertising and promotion spends in order to grow the market? Is that the way you guys are thinking about it? Because I felt that there could be more levers to contribution margin expansion. That's my first question. Thank you. Yeah, maybe I'll kick that off. So I think you're right. There are multiple levers to improve the contribution margin profile of the BPC segment. Let's keep eB2B to the side for now because there, the improvements have been quantified earlier. On the BPC retailing business of course there is a, you know, we're quite optimistic that there should be a revival in ad income from whatever slight, you know, slight, you know, problem we saw in the last fiscal because of increased discounting by brands. So I think that should definitely normalize. It's a short term financial phenomenon. Also, you know, our own brands, if they continue to perform well, they'll continue to take share. That could have a positive impact on gross margins. If premiumization, if premiumization happens at a faster rate than we expect, that's also margin accretive. So yes, there are many, many levers even at the gross margin level which should flow down. But what we are seeing is that the opportunity to acquire customers is still massive. Even at 25 million live till date customers, it's still just a drop in the bucket in terms of the size of the country and the opportunity which we have. And we want to ensure that we continue to accelerate and focus on customer acquisition and equally importantly, focus on customer retention and driving better repeat behavior from our existing customers. Now, the former requires investment in the form of customer acquisition cost. The latter, there is some cost associated with it, but it's not as high as the cost of new customer acquisition. So I think what you'll see is we will invest what is required to achieve our customer acquisition goals. But we always overlay that with the lens of quality growth which I spoke about. So you will not see us acquiring customers just for the sake of it. We have set our customer acquisition target at the beginning of this fiscal year. That is the number which we need to achieve. If we achieve that and we see improvements in certain other parts of the P&L, will we allow that to flow through? Of course. So we have certain objectives in terms of customer acquisition and customer retention. If those get achieved and we on top of that, we still have capital that has accrued because of improvements in the P&L, then of course we'll allow that to flow through, if that's kind of what you are asking. Very clear. Thank you so much. Just one question on fashion. So you know, at the end of the presentation, you also mentioned that two levers are the fact that, you know, fashion portals are now charging, you know, cash on delivery service, convenience fee. Do you see this as a significant change in the last 12, 18 months where the entire industry is moving to slightly better economics or is it, you know, too early to kind of say that? And is that also underpinning some of the improvements in economics and in fashion for you as well as for the industry? Yeah, no, I think 100%. It is definitely a move that the e ntire industry has made. I think across the world, you track. We track the U.S. sides, we track the European sides, we track the India sides. Clearly there was a time where r etailers were actually spoiling consumers too much. We had made as an industry, I w ould say made things too lenient. A nd then we complained that the customers are behaving badly. It's actually an industry issue. Now the industry is getting a little more sensible. There are a lot of costs of shipping a good fashion product, getting a r eturn of it, etc. Across the world, and there's a lot of all companies have basically come to the new normal that we're starting to charge customers for certain aspects of that business. I think it's a new normal. It's definitely helping. I think the entire world and the Indian industry, it's even in food tech f ood delivery and all you can eat charges. I think the consumers are now. Getting used to a new normal and it's going to play out in Nykaa Fashion as well. Great, thank you. Hi, this is Abhishek from ISEC. One question on eB2B. C ould you give us some clarity on? W hat is the working capital days in that business and what is the contribution of the top 20 SKUs to your GMV? Yep. So as you know, we buy on credit. Right. And we sell on cash. So we have a. But we obviously have some stocks in warehouse. So we do have a much leaner kind of a working capital. It's between, I think, 5-10 days. Yep. And your second question. So we have about 5,000 active SKUs. 700 SKUs account for 80% of our sales. I don't know the top 20, but the 80% is 700 SKUs. Thank you, that's, that's very helpful. Just one question. You spoke about your LLM model. So is it your own model or do you partner with somebody else for that? Yeah, it's a combination. In some cases we are building our own models. More importantly when we are taking like a Microsoft or a Google model, the thing that we are being extremely cautious about is, like, you know, those models are built on our servers and our instances and they are trained and grounded on our data. Yeah, so we are doing a combination of both. Right, thank you. Hello. Yeah, hi, this is Siddharth here from Nomura. Sir, my first question is on the fashion side. I mean in the past we have seen that we have focused more on curation and premiumization and probably sometimes at the expense of growth. Now we are talking about a very strong 2.5x-3 x GMV growth in the next three years. So will that continue with the same focus on curation, premiumization? And do you think taking them both together is sort of possible to see? The type of growth we are trying t o achieve or there can be some strategy, normalization or change in the curation in this fashion vertical going ahead? Yeah, no, I think our strategy from day one on Nykaa Fashion has been extremely sound and extremely well put together. The only thing we've gotten better at over the years is executing and doing a better job at it. So our core principles of curation and premium are unchanged and they will stay unchanged in the foreseeable future that we are currently thinking of. B ut the market itself is big. It's already a $3 billion market. They're going to a $10 billion market in that space. So from a macro perspective, we believe it's big enough for market that our current strategy will hold and take us over, take us through the next few years. So even at a 2.5x-3x, it's, it's not too far from market growth for the premium consumer base that we're talking about. Right? Going from INR 3 billion to INR 10 billion from a macro perspective. The growth that we are executing or we are planning on is sound based on the current principles. Okay, the second question on the BPC side, clearly on the category side we are talking about maybe a stronger growth in the fragrance and bath and body care segment. How does the competition or in terms of the segments, do you see what will drive this growth and how does it impact the contribution margins? Is it similar or if you can share some color there. So I think the category expansion work which we're doing, which I spoke about, should not have any impact on the margins from a gross margin perspective. You know, as I said, the reason why we are seeing an acceleration in categories like fragrance and hair care is because if you look around the world, actually fragrance and hair care tend to be the largest categories within the beauty industry. In other markets in India, haircare has historically been a big category, but it's been traditionally a personal care category with a over indexation towards hair oils. So our goal is to make hair care into a beauty category which means selling more serums, shampoos, conditioners, masks, etc. On fragrance side, of course, India has historically been a deodorant market, but there is a large opportunity for premiumizing that end of the market into what we call as fragrances, which is EDTs and EDP. So these are, as I said in my presentation, initiatives that should only help increase the consumption of our consumers. It should help to increase the category width that we're able to retail. It should also help us to de risk from any from over dependence on any single category. And it should give us, it should make us into a very holistic beauty retail company. And again, we're also quite optimistic that if you sell more categories you have the ability to drive more frequency of purchase from the existing customers as well. Hi, this is Vivek Maheshwari from Jefferies. A couple of questions. First is, you know, you briefly mentioned about, you know, you reference to quick c ommerce from your business perspective in terms of delivery timelines. W hat are your thoughts as we go into the next couple of years? W hat does this entail in terms of i nfrastructure of let's say warehouses? What will be its cost implication and so on and so forth? Yeah, maybe I'll kick it off. And you know, I think quick commerce is, you know, as I've said on our earnings call a few weeks ago that quick commerce is a demand. It's a demand fulfilling platform. There's no demand generation that happens on quick commerce. It's a platform that lends itself well to consumers who know exactly what they want to buy and therefore it lends itself well to much more FMCG like categories and personal care and less so within beauty. That being said, we do believe it is incredibly important to continue to improve the speed of delivery for our consumers. As I showed you in the presentation today, the order to delivery timelines have reduced by almost a fifth over the past 2 to 3 years and now a majority of orders across 19,000 pin codes of India are being delivered within 48 hours. If you live in major metros, which is where currently quick commerce tends to be dominant within major metros, we're able to deliver usually same day. So that means within 24 hours. Now let's also keep in mind that the quick commerce assortment is very limited. When I say we're delivering a majority of our orders within 48 hours, I'm referring to all, you know, 250,000 SKUs which we retail will be delivered within 48 hours. So I think it's a slightly different model. Of course we watch it closely. We do think it is meeting a consumer need. That being said, do we see beauty as a category where discovery is important, education is important. These are purchases that take time to build conviction for. I've spoken to you, Vivek, about how each visitor visits us 50x in a year and they transact four times in a year. So the process of actually deciding on making a purchase in this category is slightly more elaborate and as a result it's important to have what I say is best-in-class delivery timelines. But do I feel that we need to be doing 15-minute delivery for all 250,000 sq ft today? I don't think that's a good use of our capital at this point in time but, but I think what you will see is definitely continued investment behind getting closer to the customer. Over the past three years we've gone from 18 warehouses to 44 warehouses from three or four states to 12 states. You know, majority of our shipments are now intra-state which means the package is dispatched from within the same state. Would we like to get to a place where we're doing more intra-city? Yes, absolutely. So I think we're developing a hub and spoke model which we've been building for the past few years and we'll continue to invest behind that. I think you'll see us this hub and spoke model only continue to get more robust over the coming quarters and coming years. From a capital investment perspective, it should not be massive. I think as Ganesh said, peak CapEx for us is probably behind us at least for the next several quarters. Yes, you will see us continue to expand the warehouse capacity. Not such large warehouses, but much smaller warehouses in more metro areas to continue to improve that speed of delivery. That is an investment we will make. As I said, it's not going to be as heavy as what it had been in FY2022 and 2023. We probably have time for just one or two more questions. One more question I have. T he other question is on the fashion. But it's a different, let's say, side of the equation from where I want to come. You are 15% of the premium apparel market and you have guided for, let's say, break even and ultimate margins. But if I flip and ask you the question, why don't you keep the losses flat for next few years and actually gain market shares at the time w hen you are seeing that customer habits are changing a bit, they are happy to pay up, etc Why go after profitability at this stage?w hen you are convinced about the model? Forget about what investors and market think a bout, but why not, you know, gain. Market shares, build category and then think about profitability and break even, you know. After 3-5 years. Why the rush? Yeah, I think so. The point is that all we are trying to do is build businesses with discipline. And I think when we say the path to profitability, what it means is that the business is cutting out the unnecessary expenses and it returns to unit economics. And once we are anyway at good unit economics, choice remains ours to accelerate growth. So in even current numbers, certain pace of customer acquisition for fashion is being built. We are of course using technology more and more to allow more cross selling between beauty and fashion platforms. Because beauty has 25 million customers where fashion is 6 million so far. So there's a lot of kind of what we call as low hanging fruit and you know, optimization and marketing that we could use and we are trying to use that with, you know, with the discipline of trying to stay focused on getting the right unit economics. And that doesn't stop us from raising our ambition of new customer acquisition beyond that. But we will also make investment on establishing more international partners like Revolve and Foot Locker, two examples. There could be more going forward and we won't hesitate if we have to make investment like already in this investment what is built in is you know,.com generalized sites that we are creating which can be used not just for Foot Locker in Nysaa.com and also similarly any other brand partners like even with Revolve we have an extremely complex B2B2C model which we are using. A lot of tech investment has been made in last couple of years, and current state, seeing we don't need such investment, is coming out of the confidence that these investments can be leveraged to continue to push the pedal on growth in each of the businesses. Thank you all. I think just one thing to add, Vivek, is it's how we approach each of our businesses is its quality of growth also matters. That's the additional lens which we add to our forecast. And even when fashion, when Nihir came and spoke about fashion saying that the profitability will improve by a certain amount, it's not occurring at the cost of that quality growth. So I think our understanding is that, that there is certain amount of quality growth in the market achievable every year and we plan to maximize that and maximize our share in, in that part of the addressable market. And then, and at the end of the day after maximizing the growth, the quality growth that's out there, we'd still be able to improve profitability. So why would we not? I think as a company we don't have the DNA of chasing low quality unprofitable growth just to put up numbers to impress investors. You know, we would rather acquire the right customer, retain the right customer, sell the right assortment at the right price. And I think there is, and that is a, that's a journey India is on as a, as a market and as a consumer. And we are taking the consumer on that journey on fashion and beauty. And so I think delivering the kind of growth that fashion has delivered over the past few years and will continue to do so and delivering profitability, we don't think it should be a choice actually. So we fear that you can become a non-preferred destination because if you don't stay as a premium destination, you won't attract the premium customers. So the branding of Nykaa and where it stands in terms of what it offers to the customer is very important to us and we don't want to compromise on that and start. Once you start having wrong customer, you start showing wrong products and SKUs, the whole website starts functioning very differently. So we want to keep that premiumization focus and investment needed to grow. That will do. I think on the previous question I'll just address that a bit about Express Delivery. I think what didn't come out today is a big plan that we have this year to improve delivery across the entire network. So I think the teams in operations have promised that without too much incremental costs they are going to be able to increase the delivery timelines for all of the zip codes. Due to the scale that Nykaa is gaining and due to what we are able to do in terms of like the network, you know, organization through the hub-and-spoke model and that we are quite excited will allow us to also do express delivery in metros and I think we are quite excited to work on that part. But for us there's a lot to lose by not facilitating discovery, education and at the cost of just trying to fulfill a quick order. We don't want to lose that. So trying to do that in a balanced manner is what we will try to pursue. I covered it of course, when I answered your question earlier on Express Delivery. But you know, we wanted to save something for next year's annual day, so we'll bring it to you next year. And just generally as a culture we prefer to do before we speak. And that's why I showed you the work we've done over the past three years as opposed to trying to tell you what we're going to do. I would rather come to you next year when we've done it. So stay tuned. I think there's. You'll see more on the, on the Express delivery front, hopefully next year's annual day. Looking forward to that. Thank you. All the best. We have one more question here. That's the last one for today. Hi, Sheela Rathi from Morgan Stanley. Three questions, actually, short ones. The first question, you know, 5. Within one of your slides you showed that beauty 5% of the beauty market is premium. What would be that number for us? I think it's very hard to answer that question because the definition of premium and lux is a little bit overlapping. I think very often we have said that about 15%-20% is lux, premium prestige to lux and premium definition sometimes is outside of that. N o, so I mean just to, you know, 15%-20% is a slightly wide range. But the point we're trying to make is it's still under penetrated. Premiumization is still in India. Of course it's at 5%. If roughly you equate the definition of premium for the market to our definition of premium, say it's 15%-20%. So it's still under penetrated. If I look at China at average is about 35%-40%. You go to slightly more premium beauty specialty retailers, they're even higher share of prestige and premium beauty. So even at 15%-20%, we feel there's still a long way for us to go. And it's 15%-20% by value. So please remember that means by volume it's even less so because the ASP obviously is higher for premium products. That is a huge opportunity actually on premiumizing the assortment and the consumer behavior. Understood. Second question was on eB2B. In your slide, you showed that how we're using the app to place the orders. So just wanted to understand what percentage of retailers are now using the app. Actually, all the retailers are using the app. But you know, what happens is that habit change takes time. So we have feet on ground who go there, who remind the retailer that, you know, that there's time to place the order and then the retailer is, you know, placing. So the app is used by the retailer. But our feet on ground are helping the retailer. Right. We have seen that over time, the requirement of the salesman to go and, you know, engage with the retailer comes down. This is a habit change. Because over years of different. So it just takes a little bit of time, that's all. But actually all orders are placed. On the app, also virtual try-on that you do now. Correct. Which is what we are starting now, which is where, you know, it's a lot of technology at play. Okay, so what you're also starting now is that the salesman has the potential to actually build a cart from his device, but will not be able to place the order. So then that's how we're going to improve our BD sales and productivity. So they cover more outlets in a day. Right. By building the cart based on the history and behavior and understanding. And then the retailer actually places the final order after making the changes. So a lot of stuff happening to, you know, go towards a less touch kind of a model. The final question, just to clarify on the CapEx bit, how should we think about the GCC CapEx because we're talking about 70 stores in the next few years? So I think in the current estimate the GCC CapEx was not included I think because it's a, you know, it's a subsidiary of a, it's a joint venture under a subsidiary. But I think at the moment the plan is to about spend up to $3 million-$5 million. So $3 million-$5 million is the investment that is being envisaged. It will be also parallelly contributed by our partners. And also we do believe that the deep investment that is required in Indian market may not be required in GCC which is extremely, you know, high income, high consumption market. And with physical retail getting breakeven levels much faster in that market, the investment needed in e-commerce can be funded through profitability of the physical retail. So this is on a 5-year horizon, not necessarily near one. So. A lot of investment in technology are also very efficient because of being part of a Nykaa ecosystem. So I think all that tells us that the only unique investment to be made in that market is of course the stores as well as some amount of marketing investment. But all of those could be quite efficient. So I think being in India is a very adverse market from size of the country, the income. So succeeding in India allows you to do well in other developed markets I think. And just to add, as far as the investments go, we have a 55% holding in this entity and our partners are 45%. So of the total investments which would be required, about 55 is what will. Go from $3-$5 million over the next three years or next five years. The investment. No, that is more of near term. Okay, well thank you so much for your questions, investors and analysts. If you have any more questions, please feel free to reach out to our investor relations team. Thank you panel for taking the time out for being with us today. We hope you've enjoyed listening to our leaders and are as excited and joyous as we are about the vision and what we hope to accomplish over the next few years. Nykaa started with Falguni's vision to empower consumers to shine the spotlight on themselves, themselves. It's with the very same day-zero enthusiasm that we march on to bring consumer delight at every single touch point through everything that we do. As you step out and as some of you are towards lunch, take the time to experience our booths, to experience the joint Nykaa Collective offering that we have for you. Thank you everyone.