Indian ethnic and fusion wear brand Libas is looking to become a broader lifestyle house, adding new categories and labels as it works towards a public listing by FY28.
“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 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.
Founded in 1985, Libas raised ₹150 crore in its first external funding round in May 2024 from a fund managed by ICICI Venture.
The intent to expand into a multi-brand player also comes against a challenging backdrop for apparel retailers. 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 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.