Nykaa enters the professional services category through a partnership with ELCA Cosmetics, an Estée Lauder Companies India affiliate. The salons, named Aveda X Nykaa, will feature spa rooms, manicure and pedicure stations, as well as providing hair services such as cuts, color, and styling. 

Founded in 1978 and acquired by Estée Lauder in 1997 for $300 million, Aveda is sold in over 45 countries and territories. The brand is known for performance-based cruelty-free vegan hair, skin, and body products. The brand is looking toward the Indian market to expand its network of exclusive salons tapping Nykaa's understanding of the market. 

"We want to grow and premiumize the beauty market and bring the best the world has to offer to Indian consumers. This partnership is based on these fundamental beliefs," Anchit Nayar, CEO, E-commerce Beauty, Nykaa, said to BusinessLine. "We believe the haircare category in India is ripe for disruption and we felt Aveda was the best partner to be able to offer differentiated solutions for the discerning Indian consumers," he said.

The first Aveda X Nykaa brand salon was launched in Bengaluru. Two additional salons are set to open this year in the Delhi-NCR and Mumbai areas. The salons will be launched by ELCA Cosmetics Private Limited and FSN Brands Marketing Private Limited, a subsidiary of FSN E-Commerce Ventures Limited, which operates Nykaa. In addition to opening flagship salons, Nykaa will be distributing Aveda products through multiple channels including B2B distribution with salon partners.

"India is an emerging priority market for the Estée Lauder Companies," said parent company ELCA Cosmetics' General Manager Rohan Vaziralli. "We've been focused on two things—one is sustainable growth. And along the way, we want to make sure that we're being locally relevant and driving innovation and products suited to our Indian consumers."

"Nykaa will operationally run and operate these salons and we will bring training and expertise on hair care regimes and rituals. We have so far planned to open three salons this year which will operate as experience centres for the brand. After Bangalore, we will open salons in New Delhi and Mumbai. Once we have established learnings, we will accelerate further in terms of new opportunities in new cities," he added.