Отказ Shark Tank стал стартом для косметической компании Recode Studios, вышедшей на биржу с капитализацией 350 крор

Rejected by Shark Tank, now Rs 350-crore cosmetics company: Recode Studios' journey from 'no deal' to stock market debut Recode Studios went from a Shark Tank India rejection to a Rs 350 crore market cap. Know how its founders built the cosmetics brand, scaled revenue and reached the IPO. September 07, 2026 / 17:17 IST Recode Studios on Shark Tank India When Dheeraj Bansal and Rahul Sachdeva walked into the Shark Tank India set in January 2023, they were asking for Rs 1 crore in exchange for 1% equity in their cosmetics company, Recode Studios. That put the valuation at Rs 100 crore. The pitch did not end with a deal. All the Sharks passed on the investment. Nearly four years later, Recode Studios has taken a very different route. The cosmetics company has expanded its retail network, grown its revenue, improved profitability and entered the public markets. Its shares, listed on the BSE SME platform in May 2026, were trading around Rs 336 apiece on September 4, giving the company a market capitalisation of roughly Rs 350 crore. Recode Studios was founded in 2018 by Dheeraj Bansal and Rahul Sachdeva. The company was started in Ludhiana and initially focused on makeup products. Sachdeva already had experience in the professional cosmetics industry, while Bansal came from a different business background. The founders saw an opportunity in India's beauty market: international makeup brands were often priced beyond the reach of a large section of Indian consumers. Their strategy was to offer products positioned around international-quality makeup at more affordable prices. The company initially built its business online and used social media, particularly Instagram, to create traction. It later expanded beyond its own products. By 2021, Recode had also launched a marketplace that brought other beauty brands onto its platform. The marketplace eventually carried more than 60 brands, giving the company another source of revenue alongside its own products. Recode's most unusual customer-acquisition strategy was not purely digital. The company started organising self-grooming and makeup classes at five-star hotels. Customers paid Rs 1,500 to attend the session. In return, they received Recode products worth Rs 1,500, along with lunch. The model effectively turned a product purchase into an experience. It also gave Recode an opportunity to introduce customers to its products directly. The unusual strategy became one of the most talked-about parts of the company's Shark Tank pitch. At the time of the pitch, the founders said Recode had generated around Rs 15 crore in the previous financial year and was targeting at least Rs 30 crore in revenue for the ongoing year. They also said the business was profitable. Recode appeared in the first episode of Shark Tank India Season 2, which premiered in January 2023. The founders asked for Rs 1 crore for 1% equity, valuing the business at Rs 100 crore. The pitch impressed the Sharks in some areas, particularly the company's unconventional customer-acquisition strategy. But the founders' valuation and approach to the business became points of contention. The company ultimately walked away without a deal. The rejection, however, did not stop the company's fundraising plans. In February 2023, Recode raised a pre-Series A round led by investor Sanjay Katkar. The funding was announced at a valuation of Rs 100 crore. The amount was not publicly disclosed in the announcement. The company's subsequent filings and startup databases indicate that this was its only private funding round before its public-market debut. The company used the capital to strengthen its team, invest in research and development, expand its product portfolio and increase its retail presence. That retail expansion became an important part of the next phase of Recode's growth. After the Shark Tank appearance, Recode began expanding its offline footprint through stores and franchises. The company had earlier said it planned to open around 20 stores and was targeting revenue of about Rs 50 crore for FY24. The expansion required investment and affected profitability in the short term. According to financial data available on Tracxn, revenue increased from Rs 22.5 crore in FY23 to Rs 37.2 crore in FY24. It then rose to Rs 47.9 crore in FY25 before reaching Rs 80.1 crore in FY26. Profitability also improved sharply after the retail expansion phase. Net profit rose from Rs 70.1 lakh in FY23 to Rs 70.1 lakh in FY24, Rs 3.1 crore in FY25 and Rs 11.2 crore in FY26. In FY26, Recode reported an EBITDA margin of about 21% and a net profit margin of roughly 14%. The next major milestone came in May 2026. Recode Studios launched its SME IPO with a price band of Rs 150-158 per share. The issue size was about Rs 44.59 crore, including a fresh issue and an offer for sale. The shares were listed on the BSE on May 12, 2026. The IPO was strongly subscribed, with the issue receiving nearly 234.64 times subscription. The listing gave Recode access to public-market capital and transformed it from a privately held D2C cosmetics business into a listed company. By September 2026, the stock was trading around Rs 336, compared with the IPO's upper price of Rs 158. At that level, the company's market capitalisation was around Rs 350 crore. The company has continued to expand after its listing. In July 2026, Recode announced that it would acquire a 51% stake and voting rights in beauty brand Aflairza Professionals. The transaction marked a move towards inorganic growth as Recode looks to build a broader beauty portfolio. It has also continued to expand its physical retail presence, with the company announcing plans around additional stores and premium retail kiosks in August 2026. Recode has achieved this growth without repeatedly raising large private-equity rounds. Its only reported private funding round came around the time of its Shark Tank appearance, before the company eventually moved to the public markets. The Shark Tank rejection, therefore, became only one chapter in Recode's story. The founders did not get the Rs 1 crore cheque they had asked for on television. But the company subsequently raised private capital, expanded its retail network, grew its marketplace and own-brand business, improved margins and eventually listed on the stock exchange. Saurav Pandey Business journalist at Moneycontrol, covering markets, IPOs and corporate India. He tells stories about founders, companies and wealth creation in a way that makes business relatable beyond its usual audience. He can be reached out at [email protected]. first published: Sep 7, 2026 05:00 pm Discover the latest Business News, Sensex, and Nifty updates. 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