L’Oréal Expands in India’s Beauty Market with Innovist Acquisition

L’Oréal, a leading French beauty company, has entered into an agreement to secure a majority stake in the personal care startup Innovist. This move represents L’Oréal’s latest strategy to tap into India’s rapidly growing beauty and personal care sector. While the specifics of the financial transaction remain under wraps, past media reports have indicated that the valuation of Innovist may be between $350 million and $450 million (Rs 3,240–4,170 crore).

About Innovist

Founded in 2019 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, Innovist operates science-driven personal care brands such as Bare Anatomy and Chemist at Play. The company distributes its products via direct-to-consumer channels, e-commerce platforms, quick commerce services, and brick-and-mortar retail stores.

Details of the Acquisition

Under the agreement, the founding team of Innovist will continue to manage the business while retaining a minority share. The brands under Innovist will be incorporated within L’Oréal’s Consumer Products Division portfolio. The completion of the transaction is anticipated in the upcoming months, pending the approval of regulatory bodies and standard closing conditions. Additionally, L’Oréal has obtained the option to acquire any remaining minority ownership in the future.

Statement from L’Oréal’s CEO

Nicolas Hieronimus, the Chief Executive Officer of L’Oréal, noted that L’Oréal’s investment in this innovative Indian startup highlights the company’s dedication to broadening its presence in India. This acquisition not only reinforces L’Oréal’s position in a key market but also enhances its portfolio of digital-first brands that emphasize science-backed skincare and haircare products tailored for Indian consumers.

Innovist in the Competitive Landscape

Innovist has distinguished itself as a prominent digital-first personal care entity in India, contending with brands such as Honasa Consumer, Pilgrim, and Minimalist within the premium beauty and personal care arena. The D2C beauty and wellness industry in India has seen significant consolidation in recent years, as major consumer brands strive to bolster their offerings with digital-first entities.

Recent Industry Trends

For instance, in February, Hindustan Unilever Limited took over the remaining 49% stake in Oziva for Rs 824 crore. That same month, USV secured a 79% stake in Wellbeing Nutrition, while Marico acquired a 60% share in Cosmix for Rs 375 crore. Other noteworthy acquisitions include Marico’s purchase of 4700BC, ITC’s buyout of Yoga Bar, and Honasa Consumer’s acquisition of The Derma Co. Last year’s trend accelerated with HUL’s acquisition of Minimalist, which was valued at Rs 2,955 crore pre-money.

If the L’Oréal-Innovist transaction concludes at the higher end of the estimated valuation, it stands to become one of the largest acquisitions in India’s D2C beauty and personal care sector, surpassing the HUL-Minimalist deal.