From a TV Pitch to a Public Listing
In January 2023, founders Dheeraj Bansal and Rahul Sachdeva appeared on the second season of Shark Tank India, asking for ₹1 crore for 1 % equity in their cosmetics brand, Recode Studios. The valuation of ₹100 crore was rejected by all six sharks. The episode highlighted the company’s unconventional customer‑acquisition model—pay‑per‑class grooming sessions at five‑star hotels that doubled as product demos.
Growth Strategy and Funding
After the show, Recode did not seek another TV deal. In February 2023 it closed a pre‑Series A round led by Sanjay Katkar at the same ₹100 crore valuation. The capital was earmarked for talent, R&D, product diversification and a push into physical retail. The founders had already launched a marketplace in 2021 that now hosts more than 60 beauty brands, creating a second revenue stream alongside their own products.
Financial Performance
Revenue climbed steadily: ₹22.5 crore in FY23, ₹37.2 crore in FY24, ₹47.9 crore in FY25 and ₹80.1 crore in FY26. Profitability improved sharply after the retail rollout. Net profit moved from ₹70.1 lakh (FY23) to ₹70.1 lakh (FY24), ₹3.1 crore (FY25) and ₹11.2 crore (FY26). FY26 EBITDA and net profit margins stood at 21 % and 14 %, respectively.
IPO and Market Reception
Recode’s SME IPO launched on 12 May 2026 with a price band of ₹150‑158. The issue size of ₹44.59 crore, including a fresh issue and an offer‑for‑sale, was 234.64× oversubscribed. Shares opened at ₹158 and surged to ₹336 by 4 September 2026, giving the company a market capitalisation of roughly ₹350 crore.
Post‑Listing Expansion
In July 2026 Recode announced a 51 % stake acquisition in beauty brand Aflairza Professionals, signalling a shift toward inorganic growth. August 2026 plans for additional stores and premium retail kiosks were unveiled, continuing the company’s push into offline retail.
Why It Matters
Recode’s trajectory demonstrates that a television rejection does not preclude a successful exit. By combining a strong direct‑to‑consumer brand, a marketplace, a single private‑equity round and a highly oversubscribed IPO, the company has built a robust business model that appeals to both consumers and investors.
Context
India’s beauty market is expanding rapidly, yet many international brands remain priced out of the mainstream segment. Recode’s strategy of offering international‑quality products at affordable prices has resonated with a large customer base, especially in tier‑2 and tier‑3 cities.
What to Watch
- Further acquisitions that broaden Recode’s product portfolio. - Progress of the planned retail kiosks and franchise network. - Any subsequent capital‑raising activity or dividend policy changes.