Indian ethnic and fusion wear brand Libas is positioning itself for a public listing by FY28 while targeting ₹1,000 crore in revenue with annual growth of 30-35%. According to reports from The Economic Times, the company expects to close FY26 with ₹750-800 crore in revenue, representing significant growth from ₹609.1 crore in FY25. The company swung to a ₹16.5 crore loss in FY25 from a ₹4.8 crore profit a year earlier, highlighting the challenges in the apparel retail sector. Founder and CEO Sidhant Keshwani outlined the company's transformation strategy, stating "We want to be a lifestyle house of brands over the next five to ten years."
Founder and CEO Sidhant Keshwani outlined ambitious plans to transform Libas into a lifestyle house of brands over the next five to ten years. As reported by The Economic Times, the expansion will include categories such as handbags, accessories, and home furnishing that the company might explore over the next two years. The company entered the fragrances segment in February with its debut range, Chase and Fling, priced at ₹999, which currently contributes about 1% of revenue with a target to scale to 3-4% by Diwali. Keshwani emphasized the importance of diversification, noting "So you will see some categories like handbags or maybe accessories, even home furnishing that we might explore over the next two years."
Founded in 1985, Libas raised ₹150 crore in its first external funding round in May 2024 from a fund managed by ICICI Venture. According to reports from The Economic Times, the company is scaling both distribution and revenue ahead of its IPO ambition. Libas remains an online-first retailer with 65% revenue from digital channels, but is ramping up offline presence by opening more than 50 stores over the past two years and plans to add another 50 this year. The company is targeting an online-offline mix of 50:50 as part of its expansion strategy.
The expansion plan comes against a challenging backdrop for apparel retailers, with macro slowdown in the mid-premium category driving industry consolidation. As reported by The Economic Times, Aditya Birla Fashion and Retail Ltd has struggled to revive growth at TCNS Clothing Co., while Vedant Fashions reported a 3.8% year-on-year drop in revenue to ₹492 crore in the December quarter of FY26, with profit down 14.6%. Industry players have flagged weak discretionary demand and rising competition as key headwinds, with Go Fashion (India) Ltd seeing profit plunge 60% in Q4FY26 alongside revenue decline. Analysts note significant store closures leading to a stable competitive environment, with Motilal Oswal Financial Services reporting that "lack of profitability, along with macro slowdown in the mid-premium category, has driven some industry consolidation."
The women's textile and apparel industry in India, valued at $125 billion in FY23, is expected to grow to $250 billion by FY31, according to Dun & Bradstreet Information Services India Pvt. Ltd. According to reports from The Economic Times, customer acquisition and retention remain key challenges for the company, with Keshwani emphasizing the importance of great customer experiences to sustain growth amid intense competition. "There are so many choices. They punish you with one bad experience...it is extremely important for startup founders to make sure that every individual experience that customers have is great," Keshwani added, highlighting the competitive pressure in the sector.
