L'Oréal Buys Innovist Majority Stake at Rs 4,100 Crore as Founders and VCs Score Big Exits
Updated
Updated · The Economic Times · Jun 19
L'Oréal Buys Innovist Majority Stake at Rs 4,100 Crore as Founders and VCs Score Big Exits
3 articles · Updated · The Economic Times · Jun 19
Summary
Innovist's sale to L'Oréal values the Gurugram-based beauty startup at about Rs 4,100 crore, overtaking HUL's Rs 2,955 crore Minimalist deal as India's largest D2C acquisition.
Rohit Chawla is expected to receive Rs 600-700 crore after selling about 17%, while the three cofounders together are selling roughly 20-22% of the company.
Sauce VC realized about Rs 450-500 crore for an estimated 8x blended return, OTP Ventures made nearly 40x on a Rs 25 lakh investment, and ICICI Venture is set to get Rs 300-350 crore.
L'Oréal said Innovist's founders will remain minority shareholders and keep running the business with L'Oréal India, while the buyer secured rights to acquire the remaining stake over time.
The deal highlights how large consumer groups are using M&A to buy scaled digital-first beauty brands, offering rare cash exits for D2C investors amid selective IPO markets and valuation resets.
After a Rs 4,100 crore deal, can L'Oréal preserve the startup magic that made Innovist a D2C titan?
Is this record exit a blueprint for success, or a sign that giants will simply buy out the competition?
L'Oréal Makes Landmark $400 Million Acquisition of Innovist, Accelerating Its Indian Beauty Market Expansion
Overview
L'Oréal's acquisition of Innovist, announced on June 18, 2026, marks its first purchase of an Indian company in nearly 13 years and highlights a renewed commitment to India's fast-growing beauty market. This strategic move allows L'Oréal to expand its presence and portfolio, while Innovist, a digital-first personal care company, benefits from L'Oréal's global resources and distribution networks. Innovist has moved beyond its initial online phase to become a key player in the sector, making this partnership a significant step for both companies as they aim to capture new growth opportunities in India's dynamic beauty landscape.