L’Oréal buys majority stake in Innovist

L’Oréal SA has agreed to acquire a majority stake in Indian personal care startup Innovist, marking the French beauty group’s first acquisition in India in nearly 13 years and giving it a stronger foothold in the country’s fast-growing digital-first beauty market.

The companies did not disclose financial terms.

L’Oréal said the transaction is expected to close in the next few months, subject to regulatory approvals and other customary conditions. The company will start consolidating Innovist’s sales from the closing date and has secured rights to buy out minority shareholders in full.

Founded in 2019 by Rohit Chawla, Sifat Khurana and Vimal Bhola, Innovist runs science-led personal care brands including Bare Anatomy and Chemist at Play. Its products are sold through its own direct-to-consumer platforms, e-commerce and quick commerce channels, and offline retail partnerships across India.

Under the agreement, Innovist’s founding team will remain in place as minority shareholders and continue to run and scale the business with L’Oréal India. Innovist’s brands will become part of L’Oréal’s consumer products division.

“Our investment in this innovative Indian startup is a clear testament to our unwavering commitment to expanding L’Oréal’s footprint in India,” Nicolas Hieronimus, chief executive officer of L’Oréal, said in the company’s statement. “By bringing together the very best of L’Oréal’s global expertise with Innovist’s high-performing, science-led products and deep-rooted understanding of the Indian consumer, I believe we are poised to shape the future of beauty in this dynamic market.”

The deal adds local, internet-native brands to L’Oréal’s India portfolio at a time when global beauty companies are competing for younger consumers who discover and buy personal care products through Instagram, marketplaces, quick commerce apps and creator-led channels.

India’s beauty and personal care market has drawn strong interest from strategic buyers and private investors as rising incomes, urban consumption and digital distribution reshape the sector.

The deal is L’Oréal’s first acquisition of an Indian company since it bought Cheryl’s Cosmeceuticals in 2013. India contributes about 1% of L’Oréal’s turnover.

“Innovist has built something truly special here in India, and by joining forces we look forward to bringing L’Oréal even closer to the new generation of digitally-savvy Indian beauty consumers,” Jacques Lebel, country manager of L’Oréal India, said in the statement.

For Innovist, the acquisition provides access to L’Oréal’s research, distribution and global operating systems while keeping the founders involved.

Chawla said the company was founded on the belief that Indian consumers “deserve beauty products built on real science with full transparency on formulation” and that the partnership gives Innovist “the global scientific innovation resources to grow this ambition.”

The acquisition also fits a wider consolidation trend in India’s direct-to-consumer beauty and personal care market.

Global and domestic consumer companies have increasingly sought stakes in founder-led brands that already have online communities, differentiated positioning and faster product development cycles.

Moneycontrol, which had earlier reported deal talks, said the proposed transaction could value Innovist between $350 million and $450 million, though L’Oréal has not confirmed the valuation.

For L’Oréal, the transaction is a way to localize more aggressively. India is not only a volume market; it is also a product complexity market, with consumers demanding formulations suited to local hair, skin, climate, price points and usage patterns.

Innovist gives L’Oréal an Indian brand house built around those local needs, rather than another imported label trying to look native after a marketing meeting and three focus groups.

The acquisition will put L’Oréal deeper into competition with companies such as Hindustan Unilever Ltd, Nykaa Ltd, Honasa Consumer, Sugar Cosmetics and other beauty and personal care firms targeting digitally active consumers. It also raises the bar for smaller D2C brands, many of which have faced rising customer acquisition costs and pressure to prove profitability.