New Delhi, 9th May 2023: Vidit Aatrey, co-founder of Meesho, says that beauty and cosmetics e-tailer Nykaa is not a good reflection of Indian e-commerce due to its limited customer base and product categories.
Aatrey made the remark on the YouTube show WTF is e-commerce, hosted by billionaire and Zerodha co-founder Nikhil Kamath.
When asked how to evaluate Nykaa as an investor, Meesho co-founder responded, “I don’t think that company (Nykaa) is a good representation of India e-commerce. It’s very narrow in category and very narrow in terms of the customer base they serve.”
He further added, “Their average order value is between Rs 1,500 and Rs 2,000. It’s very high, it’s super high so their segment exposure and category exposure cannot be a representation of the e-commerce market, that’s what I believe.”
During the conversation about investing in e-commerce in India, Nikhil Kamath stated that Nykaa provided an opportunity for Indian investors as opposed to Flipkart, which is owned by Walmart and is not listed in India.
Also, when Kamath inquired about Nykaa’s business model and prospective competition with Meesho, Vidit Aatrey stated that Falguni Nayar-led Nykaa was not a competitor.
He commented, “I believe it’s a very different business (than Meesho). We are a platform, they are a brand.”
