Libas looks beyond ethnic wear, gears up for FY28 IPO

"We want to be a lifestyle house of brands over the next five to ten years…So you will see some categories like handbags or maybe accessories, even home furnishing that we might explore over the next two years,” said Sidhant Keshwani, founder and CEO, without specifying the segments where the company wants to grow.

The expansion plan comes as Libas scales both distribution and revenue ahead of its initial public offering (IPO) ambition. The company is targeting ₹1,000 crore in revenue by FY28, while maintaining annual growth of 30-35%. It expects to close FY26 with ₹750-800 crore in revenue, up from ₹609.1 crore in FY25, when it swung to a ₹16.5 crore loss from a ₹4.8 crore profit a year earlier.

The intent to expand into a multi-brand player also comes against a challenging backdrop for apparel retailers. Aditya Birla Fashion and Retail Ltd has struggled to revive growth at TCNS Clothing Co., which houses brands such as W and Aurelia. Vedant Fashions, which sells Manyavar, reported a 3.8% year-on-year drop in revenue to ₹492 crore in the December quarter of FY26, with profit down 14.6%. Meanwhile, Go Fashion (India) Ltd saw profit plunge 60% in Q4FY26 alongside a revenue decline. Industry players have flagged weak discretionary demand, especially in the mid-premium segment, and rising competition as key headwinds.

"Lack of profitability, along with macro slowdown in the mid-premium category, has driven some industry consolidation with significant store closures (albeit offset by store openings by some larger retailers, who are currently in the build-out phase), leading to a stable competitive environment,” analysts at Motilal Oswal Financial Services said in a report on Manyavar in April.

As part of its category diversification, Libas entered fragrances in February with its debut range, Chase and Fling, priced at ₹999. The segment currently contributes about 1% of revenue, with a target to scale this to 3-4% by Diwali, Keshwani said.

Libas remains an online-first retailer with 65% revenue from digital channels, but is also ramping up its offline presence. The company has opened more than 50 stores over the past two years, and plans to add another 50 this year aiming for an online-offline mix of 50:50.

Customer acquisition and retention remain key to sustaining growth, Keshwani said. pointing to 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,” he added.

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 Dun & Bradstreet Information Services India Pvt. Ltd.

Neethi Lisa Rojan

Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.