Colorbar Cosmetics, a well-known Indian beauty and skincare brand, is planning to go public by launching its Initial Public Offering (IPO) in early 2027. This move comes after the company doubled its revenue this financial year by improving its product designs, launching new items, and opening more stores.
Despite a slowdown in consumer spending due to high living costs, luxury brands like Colorbar continue to perform well as wealthier customers keep spending on premium products.
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According to Colorbar’s founder and managing director Samir Modi, the company aims to reach over ₹1,000 crore (₹10 billion or $117 million) in revenue in the financial year starting April 2024. This growth will come from new packaging, better store experiences, and an expanded product range.
Currently valued between ₹2,500 crore and ₹3,500 crore, Colorbar plans to use the IPO funds to grow its skincare and fragrance categories and to buy other beauty brands, including international ones.
Other Indian beauty brands like Nykaa and Honasa Consumer have seen their stock prices fall after going public due to concerns about low profit margins caused by intense competition. Colorbar, which just about broke even last year, also faces tough competition from Indian brands like Sugar Cosmetics and MyGlamm, as well as global names like Bobbi Brown and MAC.
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Colorbar, founded 20 years ago, sells a variety of products such as lipsticks, foundations, serums, and moisturizers. It currently has over 100 exclusive stores and sells through more than 1,200 multi-brand outlets like Shoppers Stop and Lifestyle. The brand also plans to open 15 to 20 more stores this year.
Modi added that while most of the company’s revenue comes from India, they are aiming to earn up to 25% of their revenue from exports in the next five years by expanding in the U.S. and Middle East.
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