Stitching Growth: Libas Weaves Offline Dreams into a ₹1,000 Crore IPO Vision

Ethnic clothing brand Libas is stitching a strong growth story together as it gears up for a public market listing by the end of FY27 or FY28. Having raised ₹150 crore in May 2024, the online-first brand is placing its bets high on quick commerce and offline expansion to touch ₹1,000 crore in revenues in two years.

 

Key Takeaways of Libas' Growth Strategy

 

- Libas is targeting to close FY24 with revenues of ₹650 crore, higher than FY23's ₹500 crore.

- Instant commerce, currently at below 1% of sales, should comprise over 10% by early next year.

- Delhi already has one dark store pilot running, and another 18–20 will be rolled out in metros before Diwali.

Fast Fashion: Dressing in an Instant

- Libas is building a hyperlocal delivery network to meet growing demand for 30-minute fashion delivery.

- Q-comm return rates are 60–70% less than e-commerce, as a result of instant gratification.

- Seasonal, occasion-based SKUs under ₹1,500 are performing well on these websites.

Offline Expansion: Bricks from Clicks

- It is expanding at 2–3 stores a month and is targeting 70–75 stores by end-2025.

- By FY26-end, Libas targets 150–200 stores, with a strong focus on Tier-2 cities.

- 40-45% of its online sales are already from non-metro markets.

Founder and CEO Sidhant Keshwani mentions that Libas is not looking to raise further funds unless offline growth needs an up-tick. Currently, the brand is rather about growing responsibly and keeping ahead of the curve.

Source: The Hindu Business Line.