L'Oréal Eyes Majority Control of Indian Personal Care Startup Innovist in Potential $450 Million Deal

L’Oréal is reportedly in negotiations to acquire a majority stake in the personal care startup Innovist. This transaction aims to fortify L’Oréal’s presence in India’s competitive market, with the startup being valued between $350 million (₹3,240 crore) and $450 million (₹4,170 crore). 

L’Oréal's Strategic Move in India 

The proposed acquisition of Innovist by L’Oréal represents a significant move in the Indian direct-to-consumer (D2C) personal care sector. Innovist, known for its brands such as Bare Anatomy and Chemist at Play, has experienced substantial growth, recording a 3x revenue increase and achieving its first profit in FY25. 

The French beauty giant's interest in Innovist is driven by the desire to bolster its market share in India, amid concerns that the region has not met the company’s expectations. The acquisition, if successful, would be among the largest strategic buyouts in the country’s startup landscape in recent years. 

Growth and Financial Performance of Innovist 

Founded in August 2018, Innovist concluded FY25 with ₹300 crore in revenue, a 3x increase from the previous year. The company registered a profit of ₹12 crore, a turnaround from a loss of ₹12.5 crore in FY24. Innovist’s expected revenue for FY26 ranges between ₹750 crore and ₹770 crore, indicating over 100% year-on-year growth. 

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Shareholding and Deal Progress 

With current valuations placing Innovist between ₹3,240 crore and ₹4,170 crore, the deal's closure is anticipated by the end of April. Founders of Innovist hold a 49.7% stake, with external shareholders including Sauce VC and Point72Ventures. The intention is for L’Oréal to initially acquire a controlling stake, with plans to eventually own 100% over time. 

Significance for Rohit Chawla 

This potential deal might mark a second major exit for Innovist’s co-founder and CEO Rohit Chawla, following his sale of The Man Company to Emami in 2024. The strategic interest in Innovist aligns with the trend of large corporations extending their reach by acquiring thriving D2C brands. 

Conclusion 

L’Oréal’s possible acquisition of Innovist underlines the competitiveness within India’s personal care sector. The deal reflects a strategic initiative to capture greater market share and enhance growth potential within the region. 

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