L'Oréal Acquires Majority Stake in Indian Startup Innovist for Rs 4,000 Crore

French beauty major L’Oréal on Thursday said it had signed an agreement to acquire a majority stake in personal care startup Innovist, best-known for brands such as Bare Anatomy, Vinci Botanicals, Sunscoop and Chemist at Play, strengthening its presence in India’s fast-growing beauty and personal care market. According to sources familiar with the matter, the transaction is valued at around Rs 4,000 crore, making it one of the largest acquisitions involving an Indian startup and the biggest deal in India’s beauty and personal care startup space, crossing Hindustan Unilever ‘s purchase of Minimalist for nearly Rs 3,000 crore in early-2025. While HUL’s acquisition pertained to one brand only, Innovist has a portfolio of brands as part of the deal, experts said. “Our investment in this innovative Indian startup is a clear testament to our commitment to expanding L’Oréal’s footprint in India,” Nicolas Hieronimus, chief executive officer of L’Oréal, said. The acquisition comes at a time when L’Oréal is looking to revive growth momentum in India, a market it considers strategically important. Jacques Lebel, MD of L’Oréal India, who took charge in October last year, has been tasked with accelerating growth after the Indian unit reported a slowdown in FY25. L’Oréal India’s sales rose just 5% to Rs 5,979 crore in FY25, compared with 14% growth in FY24, when revenue reached Rs 5,685 crore. Prior to that, the company had posted annual growth of around 30% in both FY22 and FY23, according to regulatory filings by the company. FY26 numbers are not available yet. Despite its strong brand portfolio, industry experts note that L’Oréal’s India business remains below the Rs 6,000-crore revenue mark — a relatively modest scale for a market of India’s size and potential. The company has faced growing competition from legacy beauty players, retailers and digital-first direct-to-consumer (D2C) brands. In a recent investor call, Hieronimus acknowledged the underperformance, saying India was “not meeting expectations” and that the company was revising its strategic plan for the country. Founded in 2019 by Rohit Chawla, Sifat Khurana and Vimal Bhola, Innovist operates a portfolio of science-led personal care brands and has emerged as a significant player in India’s premium beauty and personal care segment. The company competes with players such as Honasa Consumer, Pilgrim and Minimalist among others. Innovist sells its products through its own digital channels, e-commerce marketplaces, quick-commerce platforms and offline retail outlets. According to Tracxn data, Innovist ended FY25 with revenue of around Rs 300 crore, roughly triple the Rs 100 crore reported in FY24. The company also reported its first annual profit of Rs 12 crore in FY25, compared with a loss of Rs 12.5 crore in the previous year. FY26 financials were not immediately available. As part of the transaction, Innovist’s founding team will continue to lead the business and retain a minority stake. The company’s brands will be integrated into L’Oréal’s Consumer Products Division portfolio. The transaction is expected to close in the coming months, subject to regulatory approvals and customary closing conditions. L’Oréal has also secured rights to acquire the remaining minority shareholding at a later date.