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Nykaa Sees Five High-Level Executives Resign In Latest Departures

A Nykaa spokesperson says some of these mid-level exits are a part of the standard annual appraisal and transition process.

<div class="paragraphs"><p>A Nykaa store.&nbsp;(Source: Nykaa investor's presentation)</p></div>
A Nykaa store. (Source: Nykaa investor's presentation)

Five top-level executives of multi-brand beauty and fashion retailer Nykaa E-Retail Pvt. have tendered their resignations, the company said on Friday.

It includes Manoj Gandhi, chief commercial operations officer; Gopal Asthana, chief business officer of the fashion division; and Vikas Gupta, chief executive officer of wholesale business SuperStore.

Shuchi Pandya, vice president of Nykaa fashion division's Owned Brands business; and Lalit Pruthi, vice president of finance at the fashion unit, have also resigned, according to a statement.

The statement came after Reuters first reported the news about the resignations.

In a statement via email, a Nykaa spokesperson told BQ Prime that "some of these mid-level exits are a part of the standard annual appraisal and transition process, wherein people exit due to performance or to pursue other opportunities".

To ease concerns over the multiple exits, the company said: "Voluntary and involuntary exits are expected in a fast-paced, growth-focused consumer tech organisation with over 3,000 on-roll employees, like Nykaa."

The latest spate of departures also comes after its former Chief Financial Officer Arvind Agarwal resigned in November last year, following the company's controversial bonus issue. Nykaa's 5:1 bonus issue was widely criticised as an unfriendly move for the company's existing investors, who purchased shares last year during the initial public offering.

Gandhi's resignation comes after a year-long stint. He is also a board member of Dot & Key Skincare and Nudge Wellness. Asthana and Gupta's exit comes at a time when analysts have raised concerns over the thin margins in Nykaa's fashion business and the need for investments to fuel growth.

"Beyond beauty lies uncertainty in the fashion segment; the success of Nykaa Fashion is yet to be proven," said a report by financial services firm Macquarie Group Ltd.

Nykaa's parent, FSN E-Commerce Ventures Ltd., had surged 96% in a blockbuster market debut in 2021, fetching a near $14 billion valuation. But its stock has plunged amid a broader rout in startups, falling around 68% from the all-time high in November 2021. It fell 34% in the last one year.

Shares of FSN E-Commerce Ventures closed 0.22% lower on Friday as compared with a 0.77% decline in the Nifty 50.