Recode Studios will acquire a 51% majority stake in beauty brand Aflairza Professionals across two phases. The initial ₹8.32 crore investment will help fund Aflairza’s manufacturing and distribution growth. Investors will likely watch if this acquisition improves the company's product variety and market reach in the competitive beauty sector.
Recode Studios Limited has signed a share purchase agreement to acquire a controlling interest in Aflairza Professionals Private Limited. This deal allows Recode Studios to enter the premium beauty and personal care market by taking a majority stake in the brand known for using Korean formulations.
Two-Phase Investment Plan
The acquisition will happen in two steps. By the end of July 2026, Recode Studios plans to acquire a 33% stake for an investment of ₹8.32 crore. This money will be split between buying existing shares from Aflairza’s founders and putting new cash directly into the company’s operations. A second phase is scheduled for February 2027, where Recode Studios aims to buy an additional 18%. If this second stage is completed as planned, the company will hold a total of 51%, giving it control of the business.
Strategy and Operational Impact
Aflairza Professionals, led by co-founders Sagar Urvish Gandhi and Deep Parekh, focuses on professional-grade cosmetic products. Under the agreement, the original founders will continue to manage daily operations, while Recode Studios will join the board to help guide the strategy. The company intends to use the fresh capital to build better manufacturing capacity, launch new products, and improve its reach in both online and offline retail stores.
For shareholders, the value of this deal depends on how well Recode Studios can scale Aflairza’s brand without significant execution delays. The beauty and personal care market in India is highly competitive, featuring both large established players and many new, well-funded startups. Success in this sector often requires heavy spending on marketing and maintaining high product quality, which can impact short-term profit margins.
Recode Studios faces the challenge of managing a new subsidiary while maintaining its own core business performance. The company’s ability to integrate Aflairza’s distribution network with its own will be a key factor for future growth. Investors should watch for future updates on whether the company meets the performance milestones set for the second phase of the investment in 2027, as well as any impact on the company's cash flow resulting from this capital spending.