The French cosmetics giant said Thursday it signed an agreement to buy control of Innovist, the parent of science-led personal care brands Bare Anatomy, Chemist at Play and Sunscoop. Financial details were not disclosed. The founders will remain minority shareholders and continue running the business, while L’Oréal has secured rights to acquire the remaining stake over time.
The deal comes as multinational beauty companies intensify efforts to capture younger Indian consumers increasingly shopping through e-commerce and quick-commerce platforms, while local direct-to-consumer brands gain market share with science-backed products and digital marketing.
“Our investment in this innovative Indian start-up is a clear testament to our unwavering commitment to expanding L’Oréal’s footprint in India,” said Nicolas Hieronimus, Chief Executive Officer of L’Oréal. “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.”
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The acquisition also underscores the challenge facing L’Oréal’s India business, which has lost momentum after several years of rapid expansion. Jacques Lebel, who recently took over as country manager, has been tasked with reviving growth and improving market share in a market increasingly crowded with homegrown brands.
L’Oréal India’s sales growth slowed to about 5% in FY25, down from 14% in FY24 and roughly 30% in each of the two preceding years, reflecting rising competitive pressure in a market once viewed as a key growth engine for the maker of Garnier and Maybelline.
Founded by Rohit Chawla, Sifat Khurana and Vimal Bhola, Innovist has emerged as one of India’s fastest-growing beauty startups through a portfolio of ingredient-focused skincare and haircare brands sold across marketplaces, quick-commerce platforms and direct-to-consumer channels.
The company reported a 182% jump in revenue to Rs 301 crore in FY25 and swung to a net profit of Rs 12.5 crore, compared with revenue of Rs 106 crore and a net loss of Rs 11.9 crore a year earlier.
“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,” added Jacques Lebel, Country Manager of L’Oréal India.
Despite operating in India for more than 25 years, L’Oréal’s local business generates less than Rs 6,000 crore in annual revenue, a relatively modest scale in a market where beauty consumption is accelerating rapidly. India contributes only about 1% of L’Oréal’s global sales.
In a recent investor call, Hieronimus acknowledged that India was “not meeting expectations” after posting only high single-digit growth and limited market-share gains. He attributed the slowdown to an ongoing organisational reset that includes a new leadership team and revised strategy, while highlighting investments in brands such as CeraVe and La Roche-Posay, local manufacturing and a planned technology centre in Hyderabad.
The transaction follows a broader consolidation trend in India’s beauty sector. Hindustan Unilever Ltd. last year acquired skincare brand Minimalist in a deal valued at about Rs 3,000 crore, while Estée Lauder Cos. bought luxury Ayurveda brand Forest Essentials.
“We founded Innovist on the conviction that Indian consumers deserve beauty products built on real science with full transparency on formulation, and that these products could be made in India to global standards,” said Rohit Chawla, CEO & Founder of Innovist. “This partnership with L’Oréal brings together a deep alignment in this vision and product philosophy, with the global scientific innovation resources to grow this ambition. Together, we see a significant opportunity to build the next generation of beauty brands.”
Innovist has attracted backing from Amazon Smbhav Venture Fund, Accel, Sauce.vc, 72 Ventures, ICICI Venture and other investors. The company raised $7 million in a Series A funding round in 2023 and later secured about Rs 136 crore in Series B financing.
India’s beauty and personal care market is projected to expand to $34 billion by 2028 from about $20 billion currently, driven by rising discretionary spending, premiumisation and deeper online penetration. For L’Oréal, acquiring Innovist offers a shortcut into that growth while giving it a stronger foothold among younger consumers increasingly shaping the future of the country’s beauty market.
The transaction is expected to close in the coming months, subject to regulatory approvals and customary conditions.