It seems like there is trouble brewing at Nykaa, with five senior executives reportedly leaving the company. The executives who have resigned include the chief commercial operations officer, the chief business officer of the fashion division, the chief executive officer of wholesale business, and two vice-presidents from Nykaa’s Owned Brands vertical and finance department. Nykaa has confirmed the resignations and stated that some of these mid-level exits are part of the standard annual appraisal and transition process. The company added that voluntary and involuntary exits are expected in a fast-paced, growth-focused, consumer tech organisation with over 3,000 employees. This development comes at a time when Nykaa is facing increasing competition and a falling stock price. Recently, brokerage firm Macquarie set a target price of INR 115 on Nykaa stock, a downside of over 16% to the stock’s close on March 24th. It remains to be seen how Nykaa will navigate these challenges and whether the exodus of senior executives will impact its growth and performance in the coming months.
It appears that the recent departures of senior executives at Nykaa may be linked to the company’s challenges, including narrowing profits, a falling stock price, inflationary pressure, and slowing discretionary spending by users. The company’s stock price has declined significantly from its 52-week high in April 2021, and major investors have reportedly sold large numbers of Nykaa shares in the open market. While there has been no official explanation for the recent executive departures, the company’s struggles in the face of these challenges may have played a role. The departures are likely to add further strain to Nykaa, which is already grappling with the bearish market sentiment and intensifying competition. It remains to be seen how Nykaa will address these challenges and whether it can regain its footing in the market.