Colorbar prepares IPO as luxury cosmetic spending surges in India

Indian cosmetics brand Colorbar is preparing to go public in early 2027, aiming to raise funds for product development, category expansion, and acquisitions. The company expects to surpass ₹10 billion (US$117 million) in revenue for FY2025–26, after potentially doubling its sales in FY2024–25.

Colorbar will use the IPO proceeds to strengthen its skin care and fragrance lines and explore acquisitions of domestic and international brands.

Founder and managing director Samir Modi says the company is targeting a valuation between ₹25–35 billion (US$301–422 million) at the time of listing. Colorbar is also working to increase international sales, aiming for exports to make up 25% of revenue within five years, focusing on the US and Middle East markets.

Colorbar attributes its recent growth to upgraded store formats, refreshed packaging, and product launches. The brand offers makeup and skin care solutions.

While general consumer spending may be under pressure, premium and luxury segments remain resilient due to higher-income consumers maintaining their spending habits. As Colorbar focuses on this segment, the steady demand for luxury cosmetics has supported its recent financial growth.

In addition to its domestic presence, the company aims to grow its footprint beyond India and build product categories with higher margins.

Rising disposable incomes in India are fueling beauty and fragrance demand.The brand currently operates over 100 standalone stores, sells through over 1,200 multi-brand outlets across India, and plans to open 15–20 additional stores this year.

Rising incomes drive growth

As global players are noticing strong momentum in India’s market, the country’s beauty sector is becoming increasingly crowded. 

Eurofragance’s recent sales growth underscores how rising disposable incomes in India are fueling beauty and fragrance demand. The company reported €180 million (US$204.4 million) in 2024 sales, primarily driven by expansion in India, the UAE, and Saudi Arabia. India was a key contributor, where growing consumer spending power creates new opportunities across fine fragrance and personal care.

To support this demand, Eurofragance opened a creative center in Mumbai, aiming to develop products tailored to the local market and capture long-term growth.

Additionally, L’Oréal recently reported significant growth in India in its latest financial results, highlighting the country as one of its fastest-growing markets alongside Brazil and Thailand.

Huda Beauty also recently opened its first pop-up store in New Delhi in response to India’s growing beauty market. The pop-up store aims to connect with the country’s rising base of beauty consumers.