Makeup brand Recode Studios targets Rs 50 cr revenue in FY24; plans to open 20 stores – ET Retail

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New Delhi: Ludhiana-based make-up brand Recode Studios, which gained popularity after its appearance on Shark Tank season 2, is aiming to close FY2024 at a revenue of about Rs 50 crore, reporting a 2X growth on the back of strengthening its offline and online retail presence and expanding product portfolio and SKUs.

In a conversation with ETRetail, Dheeraj Bansal, co-founder of the company shared that the brand aims to close the current financial year at Rs 26 crore revenue and targets a 2X growth next year. Last month, Recode reported sales of about 2.75 crore.

Talking about retail presence, Bansal said that the beauty startup currently has its presence in about 1,000 MBOs and runs 5 franchise stores, with the sixth store scheduled to open in Bilaspur, Chhattisgarh by the end of April this year. Overall, the company plans to increase its store count to 20 by the end of FY24.

The brand which before Shark Tank used to sell only via its D2C website, is currently present across key marketplaces such as Swiggy Instamart, Flipkart, and Nykaa. Bansal commented that he expects online marketplaces to contribute about Rs 1 crore in revenue per month, with Nykaa driving major sales. However, he opined that cosmetics as a category performs better in offline retail.

Currently, Recode’s sales mix is dominated by offline with a 60 per cent share followed by 40 per cent online.

Recode Studios which started in 2018 as a makeup brand, forayed into skincare and haircare about 8 months back. Sharing the strategy for its portfolio expansion, Bansal said that the company is focused on adding more SKUs to existing categories such as lipsticks, and at the same time launching products in newer categories.

As per reports, the beauty, cosmetics and grooming market in India is projected to reach USD 20 billion by 2025. Hindustan Unilever dominates the industry with the highest market share followed by L’oreal, SUGAR, and Colorbar Cosmetics as the leading companies.

The company raised a pre-series A round at an undisclosed amount last month at a valuation of Rs 100 crore. The fundraising was led by Sanjay Katkar and advised by Bestvantage investments. On the back of this fundraise, Recode has ramped up hiring across Western Uttar Pradesh, Kolkata, and Delhi to drive its retail expansion.

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