Recode Studios, the beauty and cosmetics brand you might remember from Shark Tank India Season 2, is looking to go public. They’ve filed the paperwork (a DRHP) with the BSE SME Exchange to launch an IPO.
This IPO is a big deal for Recode Studios, as they move to grow bigger in the fast-growing Indian direct-to-consumer beauty world. The money from the IPO will mainly go towards getting more working capital and building a new warehouse. This should help them run things more smoothly, make their supply chain stronger, and support growth online and in stores.
Recode Studios started as an online beauty brand and has built a name for itself through online stores and its own website. Now, they’re joining other consumer startups in looking at public listings to pay for long-term growth and better organize how they operate.
In their DRHP, Recode Studios talked about how they need to keep spending on ads and promotions. This makes sense, since the beauty and personal care world relies a lot on online buzz, interesting content, and influencers. For beauty startups, marketing is essential to get noticed in the crowded online space.
Narinder Singh, the CFO of Recode Studios Limited, said that the IPO should help the company grow, make things run better, and be more financially responsible and open. Getting listed is expected to make the company’s governance better, which is important for D2C businesses that want to grow and attract more investors.
The DRHP filing comes as the Indian beauty and personal care market is getting a lot of investor attention. More people are using the internet, feeling okay with buying beauty stuff online, and trying premium but still affordable products, which has helped digital brands grow. Recode Studios’ choice to go public shows that founders are feeling more confident that their D2C businesses are ready to grow.
Right now, we don’t know how much money they want to raise or what the company is worth. But, this IPO shows that D2C brands are looking for different ways to get money besides just private funding. As more startups think about listing on SME platforms, Recode Studios is adding to the buzz around direct-to-consumer startup IPOs in India.
With plans to make their operations better, invest in their brand, and fix their supply chain, Recode Studios is trying to take advantage of the long-term demand in the beauty world. As the IPO process moves forward, investors and people in the industry will be paying attention to D2C updates in India, mainly those focused on beauty, skincare, and personal care brands that are growing well.
