French cosmetics giant L’Oréal is in talks to acquire a majority stake in Indian beauty startup Innovist at a valuation of $350 million to $450 million, with a deal likely by April-end, according to reports, in what could become a major L’Oréal Innovist deal. L’Oréal is negotiating to pick up a controlling stake in Innovist initially, with plans to fully acquire the company in subsequent years if discussions progress, according to a report. Financial terms of the proposed transaction remain undisclosed.
“The deal is expected to be sealed by April-end if these bilateral talks progress at the current pace,” a source familiar with the matter told the publication. L’Oréal and Innovist have not publicly commented on the development.
L’Oréal Eyes Control With Potential Full Buyout Ahead
The potential acquisition marks a strategic move by L’Oréal to expand its footprint in India’s fast-growing beauty and personal care market. By acquiring a majority stake first, the company is expected to gradually integrate Innovist into its global portfolio.
Founded in 2018 by Rohit Chawla, Sifat Khurana and Vimal Bhola, Innovist operates a portfolio of direct-to-consumer brands including Bare Anatomy, Chemist at Play, SunScoop and Vinci Botanicals, strengthening the appeal of a potential L’Oréal Innovist deal. The startup competes with emerging and established players such as Mamaearth, Minimalist and other digital-first brands in India’s crowded BPC segment.
Innovist Turns Profitable As Revenue Surges Nearly Threefold
Innovist reported a net profit of ₹12.1 crore for the financial year ending March 31, 2025, reversing a net loss of ₹12.51 crore in the previous fiscal year, reflecting improved operational efficiency.
Its operating revenue rose 2.8 times to ₹299.05 crore in FY25 from ₹105.77 crore in FY24, driven by strong demand across channels.
Speaking at an industry event last year, co-founder Rohit Chawla said the company maintains a balanced revenue mix across its own website, e-commerce platforms such as Amazon and Flipkart, and quick commerce channels, factors that enhance the strategic value of the L’Oréal Innovist deal. Innovist has raised about $30 million from investors including Accel, Amazon Smbhav, ICICI Ventures and Sauce.vc, positioning it as a notable player in India’s startup ecosystem.
Deal Reflects Rising M&A Activity In India’s BPC Sector
The potential Innovist acquisition underscores a broader trend of large consumer goods companies acquiring startups to strengthen their presence in India’s digital-first consumer market.
In 2025, Hindustan Unilever Ltd. acquired a 90.5% stake in skincare brand Minimalist in an all-cash deal worth ₹2,706.44 crore. More recently, Marico acquired a majority stake in Cosmix Wellness for about ₹226 crore, while Dabur India invested in RAS Luxury Skincare to enter the premium beauty segment.
Industry analysts say transactions like the L’Oréal Innovist deal allow established firms to tap into younger consumer bases and leverage agile, online-first business models. If completed, the Innovist transaction would further consolidate the sector, signaling continued investor and corporate interest in India’s rapidly evolving beauty and personal care market.
