Nykaa and L’Oréal’s corporate venture capital arm BOLD are joining hands to invest in Indian beauty, personal care and wellness startups, as established players look to gain exposure to the country’s growing pool of consumer brands.
BOLD is Business Opportunities for L’Oréal Development, which was set up in 2018 as L’Oréal’s venture capital fund. It has invested in startups across the beauty value chain, particularly businesses focused on innovation and growth.
The latest partnership will see the two companies take minority stakes in high-growth businesses, with founders retaining ownership and operational control. Beyond capital, the partners will offer portfolio companies access to mentorship, industry expertise and their respective networks.
In February this year, Nykaa signed an exclusive pact with L’Oreal Luxe to manage end-to-end operations of skincare brand Kiehl’s in India. At a broader level, the two companies have worked for over a decade with each other, partnering to introduce and distribute several global beauty brands in India including L’Oreal’s Urban Decay, NYX Cosmetics, La Roche-Posay and Lancome onto Nykaa’s online and offline channels.
The size of the investments and the corpus committed to the latest initiative were not disclosed. The companies also did not name potential investee firms or specify when the first investments would be made.
The tie-up brings together Nykaa’s consumer and retail ecosystem in India with L’Oréal’s global beauty expertise. For emerging brands, the combination could offer access to capital alongside distribution, consumer insights and industry capabilities as they seek to scale.
“India is one of the most exciting beauty markets in the world,” Jacques Lebel, managing director, L’Oréal India, said. Through BOLD and its partnership with Nykaa, L’Oréal aims to back entrepreneurs with capital, mentorship and beauty expertise while allowing founders to build their brands independently, he added.
BOLD combines financial investment with access to L’Oréal’s global network, beauty expertise and mentoring, while allowing founders to retain independence, Lebel said.
For Nykaa, the partnership comes as the company broadens its role in the beauty ecosystem beyond retail. It has built a portfolio of owned and in-house brands, including Nykaa Cosmetics, Dot & Key, Kay Beauty and Nykaa Collections, while also expanding into fashion and men’s grooming.
“Nykaa and L’Oréal have been large partners in India for over a decade,” Anchit Nayar, executive director and chief executive officer, Nykaa Beauty, said. The companies’ experience of working together has helped them understand what it takes to build a promising brand into an enduring one, he added.
Nayar said Nykaa’s consumer ecosystem, retail network and distribution capabilities, combined with L’Oréal’s global beauty expertise, could support emerging consumer brands.