One of the biggest beauty companies in the world, L’Oréal, has announced that it is investing an unknown sum in the venture capital firm DSG Consumer Partners, which focuses on the consumer market.
According to L’Oréal, its investment in DSG’s fourth fund will be strategic in nature, and it will support entrepreneurs in the personal care and beauty industries in Southeast Asia and India. According to reports, the fourth fund from the VC company will be about $125 million in size.
The dairy company Epigamia, the juice maker Raw Pressery, and the young Indian tea and cafe chain Chai Point are just a few of the companies in which DSG has invested.
The funding was provided by BOLD, a corporate venture capital fund run by L’Oréal. One of the first investments the firm made was in Fireside Ventures, another consumer-focused investment fund from India, which has backed businesses like Mamaearth, Boat, and Slurrp Farm.
Vismay Sharma, president of L’oreal South Asia Pacific, Middle East, and North Africa, noted that the Southeast Asia and India region contains many of the world’s fastest-growing, most populous, and young demographic markets. It’s critical to establish a solid link with the dynamic ecosystem of disruptors in these sectors since they will influence the future of consumer brands in a significant part. Additionally, it’s crucial to invest in potential consumer brand startups.
Deepak Shahdadpuri, managing director of DSG Consumer Partners in Singapore, stated, “We are excited to welcome L’Oréal as an investor in our ecosystem and partner in our goal to energize the region’s industry disruptors and most promising entrepreneurs. Through this fund, “we aim to accelerate consumer innovation in growing markets by working with entrepreneurs to address new consumer ambitions and demands.”
The change occurs at a time when internet-first companies that specialize in personal care and cosmetics, such as Mamaearth, Sugar, and Nykaa, have seen significant growth in recent years. The beauty and personal care category, with a volume rise of 143% year over year, is driving ecommerce consumption in India, according to an ET story dated August 16, 2022, which was based on a Unicommerce report.
The survey noted that over the past two years, a large number of digital-first firms have entered the beauty and personal care market, giving established competitors a tough fight. Growth in the market is also supported by investor interest and an increase in “House of Brands” companies.
