Nykaa vs Sugar: Which Is The Better Company?

Nykaa vs Sugar

Nykaa and Sugar over time have emerged as the formidable contenders to each other, captivating the market with their unique strategies and offerings. Both the companies are a prominent name in the e-commerce industry in the beauty, fashion, cosmetics sector. These two companies have strategically utilized  the digital platforms for their business and to reach a wider base of audience, along with that they have made the perfect use of digital marketing and collaborations. 

Nykaa vs Sugar

Nykaa vs Sugar

Parameters Nykaa Sugar 
Founders Falguni Nayar Vineeta Singh & Kaushik Mukherjee 
Founded 2012 2012 
Industry E-commerce, Retail, Beauty,
Beauty, E-commerce, Cosmetics,
Brand Marketing. 
Operating spaceB2C & D2CB2C & D2C
Headquarter Mumbai, Maharashtra, India Mumbai, Maharashtra, India 
Type of company Public listed Private  
Parent company FSN E-Commerce Ventures LtdVellvette Lifestyle Pvt. Ltd.
Company overview of Nykaa & Sugar

Note: Visit the articles Nykaa Business Model  & Sugar Company Overview, to get more information about their companies as well as business models.

Business Differentiation of Nykaa vs Sugar

AspectsNykaa Sugar 
Market capitalization/Valuation Over $5.83 billion (2024)
(market capitalization)
$700 million – $800 million
(market valuation) (2023)
Revenue Rs.5,144 crores (FY23)
Rs.3,774 crores (FY22)
Rs.420 crores (FY23)
Rs.222 crores (FY22)
Expenses Rs.5,135 crores (FY23)Rs.505 crores (FY23)
Profit or Loss Rs.7.8 crores (FY23)
(Profit jump) 
Rs.76 crores (FY23)
Business Difference of Nykaa and Sugar

As Nykaa is a publicly listed company, it has generated more revenue for the latest financial year i.e. FY23, it collected a revenue of Rs.5,144 crores, a 36.3% jump in their revenues as compared to FY22’s revenue which was Rs.3,774 crores. 

Whereas, for Sugar cosmetics, it collected a revenue of Rs.420 crores for the latest FY23, less than that of Nykaa’s revenue, however, Sugar cosmetics has witnessed an 89% increase in their scale as compared to FY22’s revenue which was Rs.222 crores. 

Nykaa products

While in case of expenses, Nykaa’s expenses increased by 36.8% to Rs.5,135 crores in FY23 as compared to its expenses in 2022 which was Rs.3,753 crores.

On the other hand, Sugar expenses also witness a 68% increase in their expenses for FY23 as compared to FY22’s expenses. The expense increase was majorly because of a higher paid amount for purchases of stock-in-trade. 

Sugar cosmetics

While talking about the profit or loss the companies have made. Nykaa as of recently has observed a profit jump. The net profit of the company jumped 50% to Rs.7.8 crores in the September quarter i.e. Q2 of the FY23-24.

While in the case of Sugar cosmetics, it observed a flat loss of Rs.76 crores, despite witnessing a revenue jump of nearly 89%. 

Revenue Generations of Nykaa vs Sugar

Year Nykaa Sugar 
FY23 Rs.5,144 crores Rs.420 crores 
FY22 Rs.3,774 crores Rs.222 crores 
FY21 Rs.2440 crores Rs.126.4 crores 
Revenue Generation of Nykaa and Sugar over the years

Both Nykaa and Sugar both have witnessed an increase in their revenues with each passing year. 

However, while comparing both these beauty contenders, Nykaa has generated more revenue for the latest FY23 as compared to Sugar cosmetics. 

Beauty cosmetics Nykaa & Sugar

Nykaa witnessed an 36.3% increase in their revenue earnings for FY23 as compared to their previous revenue, while Sugar witnessed a revenue jump of 89% in their business as compared to their previous year’s revenue. Nykaa leads the game as it has generated revenue from its operations and services, and signifies its dominance in the e-commerce beauty cosmetics sector. 

Expenses of Nykaa vs Sugar

Nykaa’s expenses for the latest FY23 reported to be Rs.5,135 crores a total 36.8% increase as compared to their expense in FY22 which was Rs.3,753 crores. 

Nykaa expenses

Nykaa most of the expense goes in purchase of traded goods and stocks, which accounted for around Rs.2,866 crores, nearly contributing around 55.8 % to total expenses in FY23. While other domains like employee benefits expense, advertising & promotional expense follows the list. 

On the other side, Sugar cosmetics also observed a 68% increase in their expenses for FY23 as compared to FY22’s expenses. The expense increase was majorly because of a higher paid amount for purchases of stock-in-trade. 

Features of Nykaa vs Sugar 

Features Nykaa Sugar 
Range of products It offers a wide range of products across various categories of different brands. It also provides Korean beauty products at competitive prices.Specializes more in its brand products & has an enthralled line-up of make up products. They also have extended options for skincare, accessories products.
Delivery charges It provides free shipping of orders above Rs.299, while orders falling below this price range comes with a nominal delivery charge. It charges a delivery fee of Rs.49 if the order falls below Rs.500, while the orders above it come with different charges and free delivery coupons. 
Price sets Offers premium & high brand products at affordable prices. Prices vary according to different products. It can be affordable as well as expensive too. 
Loyalty programs Provides loyalty programs like “Nykaa Prive Program” & “Nykaa Rewards” program for their loyal customers There is no such loyalty program name till now, but it provides timely rewards programs and discounts & offers to keep their customers engaged to their name. 
Ranking Nykaa ranks at 1st position in the category of beauty & cosmetic industry in India and at 3190th position globally. (2023)Sugar cosmetics website ranks at 67th position in the beauty & cosmetic industry in India and at 101723th position globally. (2023)
Brands available Provides products like –
New York
Nykaa cosmetics
Loreal Paris 
Huda Beauty 
Faces Canada 
Wow cosmetics 
Kay beauty 
Herbal essences
& more of it. 
Majorly sells its own brand products like – 
Contour De Force Face Palette – 02 Vivid Victory
Grand Finale SPF30 Setting Mist
Good Moodie Lip Crayon – 09
Citrus Got Real Cooling Stick
Ace of Foundation Stick
& more of it. 
Availability Provides ease & convenience of purchasing products through its website, and has over 145 physical stores to make their products reach a wider audience base. Provides focussed and vibrant line up of products through their website and has stores over 45000+ to make their physical presence. 
Customer support Has responsive and good customer support through channels like emails, chats and phone calls. Provide options like emails, chats, for better customer engagement & support. 
Features of Nykaa and Sugar Cosmetics

Summing Up: Nykaa vs Sugar 

Nykaa with its high market capitalization, profit making, revenue growth, and expenses, seems to be the leading and dominant player in the beauty e-commerce industry. 

Nykaa and Sugar

Not only in makeup beauty products, Nykaa excel in providing a wide range of products in other categories too like hair products, skincare, personal care, etc. and also provides loyalty programs, an exclusive extended range of various luxurious brands, and has secured higher ranking in beauty and cosmetics category in India than other e-commerce beauty brands. 

While on the other hand, Sugar majorly focuses products on its platform and has recorded less revenue and market valuation than Nykaa. It gives Nykaa a clear way and a step forward in the cosmetics industry. 

According to the current numbers and scenario Nykaa seems to be the leading company in the cosmetics beauty industry. However, the operations, strategies, and plans may change or evolve over time. 

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Published By: Aashita Singh
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Gauri Garg
Gauri Garg
2 months ago

Always thought that Nykaa only has a vast product range, but not known that it has a higher revenue as compared to others!