Domestic startups see Gulf region as their next destination

financialexpress.com:

Several Indian startups are setting their sights on the Gulf markets, on the back of the region’s burgeoning middle class and high disposable incomes. From beauty and fashion to mobility and home services, these startups see immense growth potential by catering to premium consumer segments.

For instance, Nykaa, the beauty and fashion e-commerce firm, recently announced plans to widen its omnichannel presence in the Gulf Cooperation Council (GCC). During the company’s Q4 analysts call, founder and CEO Falguni Nayar stated that Nysaa, their e-commerce website launched in the UAE in October 2022, could generate revenue and profit much faster than in other markets. Nykaa opened its first international brick-and-mortar store in Dubai in March.

Nayar cited the region’s affinity for beauty, high per capita consumption, potential for rapid growth, and consumer profile as clear opportunities. The company’s board approved a $2.5 million investment in Nysaa in February and plans to invest an additional $1.9 million.

Meanwhile, Gurgaon-based all-electric ride-hailing startup BluSmart is gearing up to enter Dubai. It plans to launch a pilot programme with a fleet of 100 Audi E-Tron SUVs to compete with the likes of Careem, Hala, and Uber.

Companies already active in the region are also starting to see the segment grow in scale and serve as profitability drivers. Online fresh fish and meat seller, FreshToHome, has experienced significant success in Dubai. It generates approximately 13% of its revenue from the Emirate. Currently, the Middle Eastern region accounts for around 15% of the company’s annualized revenue of around $130 million.

Home services marketplace, Urban Company, which expanded to the UAE five years ago, expects this