L’Oréal’s venture fund BOLD (Business Opportunities for L’Oréal Development) has invested in Deconstruct and Arata, two leading Indian beauty brands. Deconstruct is a niche Indian skincare brand that has developed effective yet gentle products. It has seen a 10-fold growth till now. Bold has inked a deal with them in a series A round with DSG Consumer Partners and V3 Ventures. This investment by BOLD Invest aims to support the growth and innovation of these two Indian beauty companies, leveraging L’Oréal’s extensive expertise and global resources.
Arata is a hair care brand that offers solutions for India-specific hair concerns. It thrives on ingredient transparency. Bold has invested its series A round with Unilever Ventures. L’Oréal launched BOLD in 2018 and this fund has a minority stakeholding in upcoming start-ups.
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The Indian beauty market is booming and is being featured as one of the emerging countries in the beauty companies’ scope. China’s soft consumer spend and economic instabilities have further strengthened India’s position. Soon India will be one of the world’s fastest-growing luxury beauty markets.
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In 2023, the market saw a double-digit five-year compound yearly growth rate of 12% touching $800 million, which is expected to reach $1.6 billion by 2028 at 14% increase and $4 billion by 2035.
The Indian beauty market is witnessing significant growth, driven by rising disposable incomes, increased internet penetration, and a growing awareness of personal grooming. This investment positions L’Oréal to tap into this high-potential market, gain insights into local consumer behavior, and potentially forge future collaborations or acquisitions.
BOLD Invest’s strategy focuses on acquiring minority stakes in high-growth potential companies and brands. This approach allows L’Oréal to stay at the forefront of innovation and emerging trends within the beauty industry. By backing these Indian players, L’Oréal gains a valuable foothold in a key strategic market, further solidifying its global leadership in beauty.
