Stake sale · Commerce & Consumer Brands

Recode Studios signs deal to acquire up to 51% stake in Aflairza

By Startup Enthusiast · 15 July 2026

What they do

Recode Studios develops and distributes beauty products through third-party manufacturing

It buys up to 51% of Aflairza for Rs 8.32 crore via shares and fresh capital

The deal expands Recode's premium portfolio using Aflairza's Korean formulation expertise

Recode Studios signs an agreement to acquire up to 51% stake in Aflairza Professionals Private Limited.
The transaction combines a secondary share purchase from existing promoters with primary capital infusion.
Phase I involves paying Rs 8.32 crore for a 33% stake by the end of July 2026.
This initial payment is split equally between buying promoter shares and injecting fresh capital into the business.
Phase II plans to acquire an additional 18% stake by February 2027 subject to milestones.
Post-phase II, Recode becomes the majority shareholder while promoters continue day-to-day operations.
Recode gains board representation as part of the governance structure for this partnership.
The strategic rationale is to leverage Recode's distribution network for Aflairza's growth potential.

Recode aims to partner with consumer brands that have strong growth potential in the market.
The acquisition allows Recode to expand its premium beauty and personal-care product portfolio significantly.
Aflairza brings professional-grade products developed using specialized Korean formulations to the Indian market.

Recode Studios manages over 350 SKUs across cosmetics, skincare, and personal care categories.
Its model relies on product innovation, branding, marketing, and distribution via third-party manufacturing.
The company maintains an omnichannel presence through retail networks and e-commerce platforms across India.
Aflairza positions itself as a premium beauty and cosmetics brand with luxury brand positioning.
Aflairza targets beauty professionals and consumers in India with its professional-grade product range.
Funds will strengthen manufacturing capabilities and broaden the premium beauty portfolio further.
Expansion goals include improving distribution and expanding online and offline retail presence.

Recode plans to complete Phase I acquisition by the end of July 2026.
Phase II acquisition of an additional 18% stake is targeted for February 2027.
The company intends to strengthen manufacturing capabilities and improve distribution networks.