Ravelcare

• Ravelcare is coming out with an initial public offering (IPO) of 18,54,000 shares in a price band of Rs 123-130 per equity share. 
• The issue will open on December 01, 2025 and will close on December 03, 2025.
• The shares will be listed on SME Platform of BSE.
• The face value of the share is Rs 10 and is priced 12.30 times of its face value on the lower side and 13.00 times on the higher side.
• Book running lead manager to the issue is Marwadi Chandarana Intermediaries Brokers.
• Compliance Officer for the issue is Esha Srivastava.

Profile of the company

Ravelcare operates through a digital first distribution model in the beauty and personal care segment (BPC) offering a range of haircare, skincare, and bodycare products. Its current operations are built around a direct-to-consumer (D2C) approach, supported by e-commerce and data-driven product development processes. Its products are sold through multiple channels including its website, major online marketplaces such as Amazon, Flipkart and Myntra and quick commerce platform i.e. Blinkit. In Financial Year 2024-25, the company has initiated catering to customers based out of UAE, Australia, Canada, Germany, USA and Saudi Arabia.

Its manufacturing is currently undertaken through contract manufacturing arrangement with licensed third-party contract manufacturer. The formulations of the products are developed by the company and the product Research and Development (R&D) is carried out in collaboration with external formulation experts and third-party laboratories. The company also manages logistics and warehousing operations across key Indian states to ensure timely delivery and supply chain reliability. However, the company intends to set-up its own manufacturing facility at Mauje-Peth, Amravati, Maharashtra with a total installed capacity of 1,050 TPA. The proposed facility will contain end to end processes from manufacturing till the dispatch of product comprising of R&D, manufacturing, packaging, warehousing and distribution.

The company’s business model focuses on leveraging e-commerce platforms and digital channels to engage with customers directly through its product offering. The company aims to leverage technology to streamline customer engagement, demand forecasting, and fulfilment, forming an essential part of its digital-first platform. The company also focuses on providing personalized experience through customized haircare and skincare products. The word “Ravel” holds a dual meaning to entangle and to untangle which mirrors the philosophy of the company. In a personal care landscape often marked by generic solutions and overwhelming choices, its brand seeks to untangle this complexity by offering structured, data-informed, and personalized product experiences.

Proceed is being used for:

• Marketing and advertisement expenses toward enhancing the awareness and visibility of its brand
• Setting up a new manufacturing facility at Mauje-Peth in Amravati (Proposed facility)
• General corporate purposes

Industry Overview

India’s beauty and personal care industry is experiencing an unprecedented transformation, driven by surging online sales, increased global brand interest, and the rapid expansion of homegrown players. The country has emerged as the world’s fastest-growing online market for beauty products, with beauty e-commerce and quick commerce sales rising 39% in value between June and November 2024 compared to the previous year, far outpacing the 3% growth in physical store sales, Platforms such as Amazon, Myntra, Blinkit, Zepto, Nykaa, and Reliance Retail’s Tira are leading this growth, while brands are strengthening their digital presence to capture demand for convenience, variety, and influencer-driven trends. India’s beauty and personal care market, valued at Rs 2,43,236 crore ($28 billion), is expected to reach Rs 2,95,358 crore ($34 billion) by 2028, growing at 10-11% annually.

Over the last decade, India has seen consistent growth in the personal care and cosmetics market with increasing shelf space in boutiques and retail stores across the country. Many multinational brands have entered the Indian market, primarily aided by dedicated support structure and their respective pricing strategies. The Indian cosmetics industry is majorly categorised into skin care, hair care, oral care, fragrances, and colour cosmetics segments. The overall market share is expected to grow to $20 billion by 2025 with a Compound Annual Growth Rate (CAGR) of 25%. On the other hand, the global cosmetics industry is growing at 4.3% CAGR and will reach $450 billion by 2025. By 2025, along with this growth, India will constitute 5% of the total cosmetics market and reach the top five global markets in terms of revenue. Additionally, the market will continue to rise strongly due to consumers' growing choice of speciality cosmetic products such as organic, herbal, and ayurvedic items. Colour cosmetics, perfumes, specialised skin care, hair care, and makeup cosmetics are the main industries predicted to increase.

The shifting consumer landscape is one of the most compelling forces behind this expansion. More so than ever before, Indians are discriminating and quality-conscious. The market for cosmetics is expanding as disposable incomes grow and urbanisation quickens. Players in the industry, both established and new, will benefit greatly from this growth. The landscape of the cosmetic industry has changed significantly because of the digital revolution. Consumers throughout the country now have easy access to various products thanks to e-commerce platforms. Anyone with an internet connection may now shop for cosmetics with unparalleled ease, from crowded cities to far-flung villages. Firms are now able to connect deeply with their target demographic owing to digital marketing methods. Particularly social media has developed into a potent tool for firms to engage and communicate with consumers. As technology develops and the internet becomes more widely used in India, this trend is expected to intensify. 

Pros and strengths

Diversified customer base having a wide geographic presence: The company has a wide geographical presence and well-diversified customer base in India, wherein it supplies custom based products. Its supply chain and logistics systems are designed to support efficient and timely distribution, meeting the needs of its diversified customer base. It operates with fulfillment centers across multiple states to serve its customers with the use of third-party logistics services, which are continuously monitored by its team till the time they are delivered to the customers.

Digital distribution channel: The company adopts the digital-first distribution approach whereby it offers its products directly through its own website and e-commerce platforms such as Amazon, Flipkart and Myntra. In addition, its products are available on quick commerce applications i.e. Blinkit in FY 2025-26. This direct-to-consumer (D2C) approach reduces dependency on intermediaries and allows it to manage the end-to-end customer experience from discovery to delivery. It also enables it to offer competitive pricing by reducing distribution costs.

Product innovations: It continuously learns from its interactions with customers through its website to understand their hair, skin, body and scalp care needs and preferences. Insights from its onboarding questionnaires, reviews, responses and feedback help it to improve existing products and develop new ones. It undertakes end-to-end product development activities including concept creation, formulation development, packaging selection, pricing strategy, and market positioning. These decisions are informed by structured consumer insights, internal data analysis, and product feedback cycles. The development lifecycle typically involves formulation design, ingredient evaluation, regulatory compliance assessment, and pre-launch performance testing.

Risks and concerns

Concentration risk from haircare product portfolio: The company has derived a significant amount of revenue from Haircare products. The company has garnered 95.20%, 95.70% and 97.19% of its total revenue from Haircare products in FY25, FY24 and FY23 respectively. While its dependence on sales from haircare products has been declining with increasing contributions from bodycare products and it has introduced a new range of skincare and scalpcare products in FY 2023-24 and 2024-25, haircare products still remain its primary source of revenue, any adverse impact in the sales of the of its haircare products will impact its business, cash flows, financial condition and results of operations.

High dependence on website and digital marketing channels: The company has historically relied on, and continues to depend heavily upon, its website and digital media marketing for its business operations for advertising, customer engagement, and sales, which are crucial for maintaining its brand visibility and reaching its target audience. This reliance places it in a position where its ability to negotiate effectively with these platforms is limited. Any changes in the existing terms and conditions, pricing structures, or policies of these digital marketing channels could have a direct and adverse impact on its profitability. Its website and digital media marketing, which are owned by it, may be susceptible to technical issues. Such issues could potentially result in a loss of business sales.

Manufacturing outsourcing risk and single-supplier dependence: The company outsources the manufacturing of all its products to third-party contract manufacturer, and do not own any manufacturing facilities. The company is currently working with a single contract manufacturer whose manufacturing unit is located in the state of Maharashtra, India. Its dependence on third party manufacturer could adversely affect its business, results of operations, cash flows and financial condition. Its contract manufacturer does not manufacture products exclusively for it and accordingly, may choose to manufacture products for other parties, which may lead to conflicts of interest. In addition, they may manufacture products identical to the company’s by making use of the formulations supplied by it, and the company may not be able to prevent the same, in the absence of adequate intellectual property protections, which in turn may adversely affect its business, results of operations, financial condition and cash flows.

Outlook

Ravelcare is a digital-first beauty and personal care brand offering a comprehensive range of haircare, skincare, bodycare, and scalp care products tailored to individual needs. The company serves a broad domestic and international customer base through a distributed warehousing model and third-party logistics, ensuring fast and reliable delivery. On the concern side, the company derives a significant amount of revenue from Haircare products. Any decrease in the sales of its haircare products will adversely affect its business, cash flows, financial condition and results of operations. Moreover, the company is significantly dependent on its Website and Digital Media Marketing for the sale of its products.

The company is coming out with a maiden IPO of 18,54,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 123-130 per equity share. The aggregate size of the offer is around Rs 22.80 crore to Rs 24.10 crore based on lower and upper price band respectively. On performance front, the company has reported 13.09% rise in revenue from operations at Rs 2,497.89 lakh in FY25 as compared to Rs 2,208.78 lakh in FY24. Moreover, the company’s net profit increased 4.60% to Rs 525.52 lakh in FY25 as compared to Rs 502.41 lakh in FY24. 

The company’s current manufacturing is conducted through third-party contract manufacturer. It is in the process of establishing its own manufacturing facility to improve its operating margins by reducing contract manufacturing costs and dependency. This transition will enable it to manage the end to end process from production to delivery with greater control over product quality and inventory levels. It is also expected to enhance its flexibility in research and development and strengthen its warehousing and distribution operations. The company initially began its operations by selling its products through its own website. Further, to make its products more accessible and expand its customer base it has extended distribution to e-commerce marketplaces such as Amazon, Flipkart, and Myntra. Further to ensure quick deliveries, the operations were expanded to quick commerce. This multi-channel strategy enables it to reach a wider audience and provide customers with multiple options for purchasing its products.