Falguni Nayar and Nykaa: how a banker started a beauty company around 50 and listed it nine years later

Falguni Nayar spent almost two decades in investment banking at Kotak Mahindra, then in April 2012 founded Nykaa, an online beauty business. Wikipedia says she was 50 when she started. Nine years later, on 10 November 2021, Nykaa listed on the NSE and BSE, and she became India's wealthiest self-made female billionaire.

Her story is often told as a lesson that it is never too late to start. Below is what published sources say about it, where the details differ, and what the story teaches anyone thinking about a big change later in life.

A banker for nearly twenty years

According to Wikipedia, Falguni Nayar was born on 19 February 1963 in a Gujarati family in Mumbai. She worked at Kotak Mahindra from 1993 to 2012, rising to become managing director of its investment banking arm and a director of Kotak Securities, the group's institutional equities arm. She left the job in 2012.

Press reports note that in investment banking she had helped founders take their companies public, which would have shown her how businesses are built and valued before she built her own.

Starting Nykaa

Wikipedia says Nykaa was founded in April 2012 by Falguni Nayar, a former investment banker, and that the company was named FSN E-Commerce Ventures after her initials. The same page says she started with $2 million of her own money.

About her age: Wikipedia says she founded Nykaa "at the age of 50", and press reports often repeat that she started at 50 with no experience in retail. Her listed birth date of 19 February 1963 would make her 49 in April 2012, so "around 50" is the safest way to say it. Either way, the point stands: she began a new kind of business in her late forties or at fifty.

Growth and listing

• 2020: Nykaa became the first Indian unicorn start-up headed by a woman, according to Wikipedia.
• 2021: Nykaa opened its initial public offering in late October and was listed on the NSE and BSE on 10 November 2021. Wikipedia says the IPO raised ₹5,352 crore at a valuation of about US$7.4 billion.
• After listing: Wikipedia says Falguni Nayar became India's wealthiest self-made female billionaire. It adds that, as per a Forbes list dated October 2024, she and her family ranked 71st among India's richest. Net worth changes with the share price, so we have not quoted a figure.

The company's executive team also includes members of her family. Wikipedia lists Anchit Nayar and Adwaita Nayar in senior roles at Nykaa.

What we could not confirm

• The exact age at founding (49 or 50, depending on the source).
• The details of the $2 million investment, which come from Wikipedia and are not confirmed in a filing we could read.
• The company's own account of its history. Nykaa's website blocks automated readers, so this article relies on Wikipedia and the sources it cites. We have not read the IPO prospectus.

Five lessons from the Nykaa story (our analysis)

1. Experience in one field can help you in another. Her years in finance gave her a clear view of how companies grow and raise money.
2. It is not too late. She began a new venture at around fifty.
3. Back yourself, within limits. Wikipedia says she started with her own money. Only risk what you can afford to lose.
4. Build the business in the open. The company grew over nine years before listing, and a listed company must publish its numbers.
5. Bring in people you trust. Family members hold senior roles at Nykaa, which is one way founders keep control, though it has risks of its own.

If you are thinking of starting later in life

• List the skills you already have and how they apply to the new business.
• Test the idea on a small scale before you put in large sums.
• Work out how long your savings can last. Our break-even calculator shows the sales you need to cover your costs.
• If you sell food or cosmetics, check the licences you need before you start.

Questions people ask

Who founded Nykaa?

Falguni Nayar, a former investment banker, in April 2012.

How old was she when she started Nykaa?

Wikipedia says 50. Her listed birth date of 19 February 1963 would make her 49 in April 2012, so "around 50" is safest.

When did Nykaa list on the stock exchange?

On 10 November 2021, on the NSE and BSE.

What does FSN stand for?

Wikipedia says the name FSN E-Commerce Ventures comes from her initials, Falguni Sanjay Nayar.

Know a story like this?

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This article is compiled from Wikipedia and the public sources it cites and is not affiliated with or endorsed by Nykaa or Falguni Nayar. Figures change over time. The lessons are our own analysis and this is not investment advice.