After Nykaa, Mamaearth, This Cosmetic Major Eyes IPO By 2027

After having doubled its revenue, homegrown Colorbar Cosmetics has anounced plans to go public by early period of 2027. The rise witnessed in the firm's revenue trajectory is supported by elevating its design standards, introducing new  products, and opening new brick-and-mortar stores.

Brands catering to wealthier Indians have weathered a high cost-of-living-led slowdown in consumer spending, as the affluent continue to splurge on comforts and luxuries.

Colorbar expects to double revenue to over 10 billion rupees ($117 million) in the financial year starting April 1, including by introducing new packaging and store upgrades, its founder and managing director Samir Modi said.

Reportedly, Modi said Colorbar, valued at 25 billion to 35 billion rupees, would go public in early 2027 and use the proceeds to strengthen its skincare and fragrance lines and pursue acquisitions, including overseas brands.

Stocks of beauty brands including Nykaa and Honasa Consumer have on the other hand taken a beating since listing as brokerages have raised concerns about profit margins due to heightened competition.

Colorbar, which roughly broke even last year, faces competition too, not just from privately owned Indian brands including Sugar Cosmetics and MyGlamm but also from global majors such as Estee Lauder's Bobbi Brown and MAC.

Founded two decades ago, Colorbar sells a variety of beauty products, including makeup essentials like lipsticks and foundations as well as skin care items such as serums and moisturizers.

Colorbar, which has more than 100 outlets and sells through over 1,200 multi-brand stores including Shoppers Stop and Lifestyle, also plans to open 15–20 stores this financial year.

Modi also said Colorbar, which brings in the bulk of its revenue from India, expects up to a quarter of its revenue from exports in the next five years by expanding in the United States and the Middle East.

According to a Reuters report, Colorbar plans to double revenue to over Rs 10 billion in the financial year beginning April 1, including by taking a fresh take on packaging and store upgrades.

Colorbar is expected to use the funds to not just add to it's offerings but pursue domestic and overseas acquisitions.