1 day Ago
Direct-to-consumer (D2C) beauty and personal care brand Wow Skin Science is looking for a strategic buyer with its investors seeking to exit the venture, said people familiar with the matter. ET Year-end Special Reads Buying a home in 2025? Here's how property market can shape up 18 top stock picks for 2025 from 6 leading brokers Five big bangs that shook the corporate world in 2024 The brand, which was last valued at around $400 million , is holding discussions at a reduced valuation of around $250 million, at a time when there is growing consolidation underway in the highly crowded D2C beauty segment. At least two strategic buyers have expressed interest in the company at the discounted valuation, a person directly aware of the matter said.
“There was a formal process done a few months back (to find a buyer) and the same has been opened now in the New Year and there is interest, but valuation is where current conversations are underway,” one of the people aware of the matter said, adding: “There is clarity — only a couple of D2C brands can exist in the space and consolidation is inevitable.” Investors are willing to take a hit and exit the venture at a flat valuation to their entry price, this person said. Artificial Intelligence(AI) Java Programming with ChatGPT: Learn using Generative AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Basics of Generative AI: Unveiling Tomorrows Innovations By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Generative AI for Dynamic Java Web Applications with ChatGPT By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Mastering C++ Fundamentals with Generative AI: A Hands-On By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) Master in Python Language Quickly Using the ChatGPT Open AI By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Performance Marketing for eCommerce Brands By - Zafer Mukeri, Founder- Inara Marketers View Program Office Productivity Zero to Hero in Microsoft Excel: Complete Excel guide 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance A2Z Of Money By - elearnmarkets, Financial Education by StockEdge View Program Marketing Modern Marketing Masterclass by Seth Godin By - Seth Godin, Former dot com Business Executive and Best Selling Author View Program Astrology Vastu Shastra Course By - Sachenkumar Rai, Vastu Shashtri View Program Strategy Succession Planning Masterclass By - Nigel Penny, Global Strategy Advisor: NSP Strategy Facilitation Ltd.
View Program Data Science SQL for Data Science along with Data Analytics and Data Visualization By - Metla Sudha Sekhar, IT Specialist and Developer View Program Artificial Intelligence(AI) AI and Analytics based Business Strategy By - Tanusree De, Managing Director- Accenture Technology Lead, Trustworthy AI Center of Excellence: ATCI View Program Web Development A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital Marketing Masterclass by Pam Moore By - Pam Moore, Digital Transformation and Social Media Expert View Program Artificial Intelligence(AI) AI-Powered Python Mastery with Tabnine: Boost Your Coding Skills By - Metla Sudha Sekhar, IT Specialist and Developer View Program Office Productivity Mastering Microsoft Office: Word, Excel, PowerPoint, and 365 By - Metla Sudha Sekhar, IT Specialist and Developer View Program Marketing Digital marketing - Wordpress Website Development By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert View Program Office Productivity Mastering Google Sheets: Unleash the Power of Excel and Advance Analysis By - Metla Sudha Sekhar, IT Specialist and Developer View Program Web Development Mastering Full Stack Development: From Frontend to Backend Excellence By - Metla Sudha Sekhar, IT Specialist and Developer View Program Finance Financial Literacy i.e Lets Crack the Billionaire Code By - CA Rahul Gupta, CA with 10+ years of experience and Accounting Educator View Program Data Science SQL Server Bootcamp 2024: Transform from Beginner to Pro By - Metla Sudha Sekhar, IT Specialist and Developer View Program Wow Skin Science founder Manish Chowdhary said "the facts presented are false”, without commenting on the specifics.
ChrysCapital, which is one of the largest investors in the skin care brand, declined to comment. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories India’s D2C beauty space is witnessing consolidation as new-age brands face challenges in scaling profitably amid intensifying competition. Consumer goods major Hindustan Unilever is in talks with D2C brand Minimalist for an acquisition valued at around $350 million, ET reported on January 3.
Industry executives said various brands are looking at such options, but those conversations are in early stages. Wow Skin Science explored funding from venture investors as well, but the talks have fallen through and investors are now willing to go for a strategic sale, sources added. Industry consolidation ET reported last year saying MCaffeine , another D2C brand, has been in talks with both financial and strategic investors.
This, however, coincides with big-ticket as well as mid-stage deals happening in beauty marketplaces and newer brands. Purplle, which sells its own brands as well as of others, closed a Rs 1,500 crore funding , including a secondary share sale, last year while brands like Foxtale and Traya have scooped up new funding. According to industry experts, legacy fast-moving consumer goods players and global cosmetics giants are increasingly eyeing such acquisitions to strengthen their portfolios in high-growth, premium beauty categories.
India’s beauty and personal care market, valued at around $15 billion, is witnessing a shift. Beauty-focused brands like Mamaearth , Nykaa , Sugar Cosmetics and Plum hold a 33% market share, which is projected to grow to 42% by 2027, as per a report by Redseer Strategy Consultants and Peak XV Partners. Meanwhile, the market share of traditional players such as HUL and Procter & Gamble is expected to reduce to 58% from 67% over the same period, as per the report.
Slowing growth For Wow Skin Science, its growth rate has fallen over the past two years, while its loss that swelled in FY23 has come down as it started cutting costs. Its parent company, Body Cupid , posted a 10% drop in operating revenue to Rs 233.4 crore in 2023-24, compared with Rs 258.
1 crore in the previous fiscal year, while loss narrowed to Rs 130.2 crore from Rs 213.5 crore during the same period.
In FY22, it had hit peak revenue of nearly Rs 344 crore with a loss of Rs 136 crore. Amid efforts to control costs, it has found it challenging to maintain growth momentum and deepen the brand presence among customers. The company has since undertaken workforce reductions amid other measures to rein in operating expenses.
“The growth has stalled largely which is why consolidation is inevitable and they (investors) are looking to exit the space even without making a lot of money on the deal,” another person aware of the discussions said. Global players The consolidation trend comes against the backdrop of India’s rising middle class and growing demand for premium beauty products. L’Oréal and Shiseido have both identified India as a key growth market, with L’Oréal naming it the fifth largest for its professional products division.
HUL, which controls over half the skin and hair care market with mass-market brands such as Sunsilk, Clinic Plus and Lakmé, has been sharpening its focus on premium and digital-first brands. The company has introduced ‘masstige’ offerings like Dermalogica and Love Beauty & Planet while investing in the health and wellness space with brands such as Oziva..
