Nykaa Shares Rise 3% After OpenAI Partnership Opens New Sales Channel

Shares of FSN E-Commerce Ventures Ltd, the parent company of Nykaa, gained nearly 3% in morning trade on Wednesday after the beauty and fashion retailer announced a multi-year partnership with ChatGPT maker OpenAI.

The stock rose as much as 3.12% to an intraday high of ₹280.65 and was later trading at ₹279.95, up ₹7.80 or 2.87%, around 11:43 am.

The partnership will allow users in India to discover and shop Nykaa products without leaving the chat interface. Instead of moving across apps or websites, customers can now receive personalised recommendations on skincare, cosmetics and fashion products within ChatGPT itself.

This integration marks one of the early examples of a major Indian retailer embedding its shopping experience into an artificial intelligence platform at scale. Nykaa said its Nykaa Beauty and Nykaa Fashion storefronts will function as connected apps inside ChatGPT, enabling a more seamless product discovery journey.

AI Shopping Push

The collaboration runs on OpenAI’s Agentic Commerce Protocol, an open framework created with Stripe to support in-chat purchasing experiences. While financial details remain undisclosed, both companies confirmed that the rollout will happen in phases over several years.

The move positions Nykaa in front of ChatGPT’s expanding global user base, potentially creating a new customer acquisition channel beyond its own app and website. It also strengthens the company’s presence in AI-led retail discovery, an area gaining rapid traction across global e-commerce platforms.

Apart from customer-facing features, Nykaa will also use OpenAI tools internally. The company will roll out ChatGPT Enterprise across teams like marketing, customer support, legal, finance, supply chain and operations.

It also plans to adopt OpenAI’s Codex coding agent to support its engineering teams with software development and productivity improvements. These tools are expected to streamline workflows and speed up product and technology updates.

Digital Commerce Shift

The partnership builds on Nykaa’s earlier AI-led features such as Skin Scan, Virtual Try-On, Ask Nykaa and its fashion recommendation tool Nykaa Muse. These systems already use computer vision and conversational AI to improve product discovery.

OpenAI, meanwhile, has been expanding its commerce ecosystem through initiatives like “Buy it in ChatGPT”, which integrates merchants including Shopify and Etsy. The latest tie-up adds another major retailer to its growing network.