The Competition Commission of India has approved L’Oréal India’s plan to acquire full ownership of Onesto Labs, the parent of beauty brand Innovist. This deal gives the company control over digital-first brands like Bare Anatomy and Chemist at Play. The acquisition helps the global beauty giant compete with local D2C startups in India’s shifting personal care market.
L’Oréal India has received regulatory approval from the Competition Commission of India (CCI) to acquire 100% of Onesto Labs. This transaction brings Onesto Labs, the parent company of the beauty and personal care brand Innovist, under the control of the global cosmetic giant. The move is a significant step for L’Oréal as it looks to strengthen its presence in India’s fast-moving beauty segment.
Expanding Through Digital-First Brands
Onesto Labs operates brands such as Bare Anatomy and Chemist at Play, which have built a strong following among younger, digital-native consumers. These brands focus on science-led formulations, a segment that has seen high demand in recent years. By integrating these assets, L’Oréal is not just expanding its product list but is also gaining a more direct route to customers who prefer shopping online. This approach helps the company move faster than traditional retail methods, which are often slower to adapt to changing consumer trends.
Strengthening Against Local Competition
The Indian beauty market is currently witnessing a strong push from agile domestic startups. Companies like Honasa Consumer, which owns the brand Mamaearth, have successfully challenged established global names by focusing on specific consumer needs and using social media effectively. For L’Oréal, acquiring a business that already understands this digital-first model is a way to bridge the gap. Instead of building these capabilities from scratch, the company is choosing to buy established brands that have already proven they can resonate with modern Indian buyers.
Management and Operational Structure
The deal structure includes an arrangement where the founding team of Innovist—Rohit Chawla, Sifat Khurana, and Vimal Bhola—will retain a minority stake in the business. They will continue to manage operations in partnership with the L’Oréal India team. This is a common strategy in such acquisitions, intended to ensure that the startup keeps its agility and unique culture. It prevents the brand from becoming too rigid, which can sometimes happen when a small, fast-moving team is folded into a large multinational corporation.
Investor Monitorables
While the deal provides L’Oréal with a new growth avenue, success will depend on how well these brands are integrated. A key risk in such mergers is the potential for the acquired brand to lose its unique identity or customer trust after being absorbed into a large organization. Investors may watch for future updates on how L’Oréal plans to scale these brands and whether the operational marriage with the founding team delivers the expected growth in sales and market share. Another monitorable will be the company’s ability to manage costs while expanding its digital presence in a highly competitive sector.