L'Oreal Acquires Majority Stake in Indian Startup Innovist to Expand Beauty Portfolio

French cosmetics major L’Oreal will acquire a majority stake in Indian personal care startup Innovist. In a statement, L’Oreal said that the two companies have signed an agreement. The deal, which includes the right to buy out the minority shareholders in full, will bring Innovist’s haircare range Bare Anatomy and Chemist at Play skincare to L’Oréal’s portfolio. The company did not disclose the financial details of the deal. L’Oreal said that the move marks a major step in its expansion plan in India’s fast-growing beauty industry and complements its portfolio with local brands tailored for Indian consumers. “Our investment in ​this ​innovative Indian startup is a ⁠clear testament to our unwavering commitment to expanding L’Oreal’s footprint in India,” said CEO ‌Nicolas Hieronimus in a 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,” he added. L’Oreal, which makes about ⁠1% of its ⁠turnover in India, had high single-digit growth in the country last year, ‘but did not ⁠gain ‌a lot of market share, ​if any”, Hieronimus told investors after ‌reporting annual results. Earlier this year, Hieronimus said that the company was not meeting expectations in India, which is seeing rapid growth driven by young, affluent, social media-savvy shoppers with rising disposable income. L’Oreal said the deal is set to close in the next few months, subject to regulatory approvals. It also said that the founders and minority shareholders will continue to operate the business in collaboration with L’Oreal India. Founded in 2019 by Rohit Chawla, Sifat Khurana, and Vimal Bhola, Innovist claims to be a science-led and digital-first personal care company. The company’s brands, like Bare Anatomy and Chemist at Play, are supported by its in-house research & development and manufacturing capabilities. The company’s popular skincare and haircare products are available across its direct-to-consumer platforms, major e-commerce and quick commerce channels, and nationwide offline retail partnerships.