TReDS sees a festive boost; Nykaa’s growth strategy

The Trade Receivables Discounting System (TReDS) platforms experienced a 36% surge in invoice financing during the festive season of 2021, as small and medium businesses utilized the services to finance inventory purchases and other working capital needs. The period of August and September saw TReDS financing invoices worth Rs 75,788 crore, a significant increase from Rs 55,549 crore in the same months the previous year.

This growth in TReDS platforms, which allow MSMEs to upload invoices approved by their corporate buyers and receive early payment from banks and NBFCs, does not necessarily equate to increased credit for MSMEs or improved cash flow cycles for small businesses, according to analysts.

In addition to the TReDS boost, Nykaa, a prominent beauty and fashion e-tailer, announced its acquisition of celebrity makeup artist Namrata Soni's firm, Simply Nam. This move is part of Nykaa's broader strategy to expand its growth and margin drivers, which include building in-house brands, partnering with experts and celebrities, and acquisitions.

House of Nykaa, the portfolio of 13 owned and partner brands under Nykaa, has seen a 106 basis points increase in gross margin to 46%, driven by a rising House of Nykaa mix and higher marketing income.