Global cosmetics giant L'Oreal has signed an agreement to acquire a majority stake in beauty and personal care startup Innovist. However, the company did not disclose the financial details of the deal.
The acquisition, L'Oreal said in a statement, will help it expand into India's fast growing BPC market and build a portfolio with local brands catering to the Indian audience.
As part of the agreement, the Innovist founding team will continue to operate and scale the business in collaboration with L'Oreal India as minor stakeholders.
"L'Oreal will start consolidating Innovist sales from the date of the closing of the transaction. As part of the agreement, L'Oreal has also secured rights to buy out the minority shareholders in full," the statement added.
Notably, it was reported earlier this year that L'Oreal was in talks to acquire a majority stake in Innovist at a valuation of $350 Mn to $450 Mn (₹3,264 Cr to ₹4,196 Cr).
Founded in 2018 by Rohit Chawla, Sifat Khurana and Vimal Bhola, Innovist is a roll up BPC startup operating brands like Bare Anatomy, Chemist at Play, SunScoop and Vinci Botanicals. It offers a wide range of products for hair care, skin care, and sun care across its portfolio brands.
The startup competes with the likes of Mamaearth, Plum, Minimalist, among others, in the beauty and personal care space.
Last year, the startup raised ₹136 Cr in its Series B round, which was a mix of primary and secondary, led by ICICI Venture via its new early growth fund, IVen Amplifi. Innovist has raised a total funding of $29.27 Mn to date.
The development comes at a time when new-age D2C brands are growing rapidly in the country through their digital-first approach and premium and personalised offerings. As a result, a number of established brands have been acquiring D2C brands to strengthen their position in the market.
For instance, Marico acquired an additional 46.02% stake in HW Wellness Solutions, the parent of omnichannel healthy snacks startup True Elements, in September last year to increase its shareholding to 100%.
Similarly, Hindustan Unilever acquired skincare brand Minimalist at ₹2,955 Cr valuation last year. It also acquired the remaining 49% stake in plant-based nutrition D2C startup OZiva parent for ₹824 Cr in February.
Driving this push is the growth of D2C brands, with their cumulative GMV projected to grow to $310 Bn by 2031from $65 Bn in 2026.