Beauty and personal care startup Innovist is reportedly in discussions to sell a majority stake to L'Oréal, with the valuation estimated between $350 million and $450 million (approximately ₹3,264 crore to ₹4,196 crore). This acquisition aims to enhance L'Oréal's presence in the growing beauty market.
According to sources, L'Oréal intends to initially acquire a controlling stake in Innovist, with plans for a complete takeover in the coming years. The deal is anticipated to be finalized by the end of April, contingent upon the progress of ongoing negotiations.
Founded in 2018 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, Innovist operates several brands including Bare Anatomy, Chemist at Play, SunScoop, and Vinci Botanicals. The company has raised nearly $30 million in funding from investors such as Accel and Amazon Smbhav.
Financial Performance
Innovist has shown significant financial recovery, reporting a net profit of ₹12.1 crore for the fiscal year ending March 31, 2025, compared to a net loss of ₹12.51 crore the previous year. Its operating revenue surged to ₹299.05 crore, a remarkable increase of 2.8 times from ₹105.77 crore in FY24.
Market Position
In the competitive landscape of beauty and personal care, Innovist faces competition from brands like Mamaearth and Minimalist. The startup's revenue streams are diversified across its own website, various e-commerce platforms, and quick commerce.
Why it matters: If the acquisition proceeds, it will reflect a continuing trend of larger companies acquiring innovative startups to expand their market reach. This follows similar moves by other FMCG giants in the sector.
As the negotiations develop, further updates are expected from Innovist and L'Oréal regarding the specifics of the transaction.
