Recode Studios to take 51% control of Aflairza in phased ₹83.2M deal
What's the deal? Recode StudiosDealroom has a profile for this one. Try Dealroom → has agreed to acquire a controlling stake in professional makeup label AflairzaDealroom has a profile for this one. Try Dealroom →, starting with an initial purchase for 83.2 million rupees. The direct-to-consumer cosmetics brand's board approved the two-phase transaction on Tuesday, July 14, 2026.
How it works: Phase I gives Recode an upfront cash stake, minority board representation, access to regional intellectual property, and co-branding rights on digital platforms. Phase II lifts its holding to a controlling 51%, tied to revenue milestones and operational benchmarks over the coming fiscal quarters.
What's the endgame? The deal hands Recode full access to Aflairza's professional product range and salon distribution network. That adds higher-margin items — professional primers, fixing sprays, and multi-shade palettes for contouring and colour work — to Recode's lineup.
Why the phased structure? Spacing the acquisition across two stages lets Recode align its equity spending with the rollout of its physical retail stores. It also keeps financial risk in check while integrating product lines.
Recode runs an asset-light model, sourcing inventory from third-party manufacturers in India and abroad. It expanded its operations after listing on the SME exchange.
The signal: The move points to consolidation among India's digital-first beauty labels, as D2C brands buy specialist players to broaden their portfolios and move into premium, professional-grade segments.
Read more: WowNews24x7
Image credit: Generated with Gemini
