French Cosmetic Brand L'Oreal To Invest in Singapore's DSG Consumer

L'Oréal, one of the world's largest cosmetics companies, has announced an undisclosed investment in consumer-focused venture capital firm DSG Consumer Partners.

L'Oréal stated that its investment in DSG's fourth fund would be strategic in nature, with a focus on beauty and personal care startups in India and Southeast Asia. The fourth fund from the venture capital firm will reportedly be around $125 million in size.

DSG has invested in companies such as Chai Point, an Indian tea and cafe chain startup, Epigamia, a dairy firm, and Raw Pressery, a juice maker.

BOLD, L'Oréal's corporate venture capital fund, made the investment. The fund previously invested in Fireside Ventures, an Indian consumer-focused investment fund that has made investments in Mamaearth, Boat, and Slurrp Farm, among others.

"The Southeast Asia and India region has many of the world's fastest growing, most populous, and young demographic markets," Vismay Sharma, president of L'oreal South Asia Pacific, Middle East, and North Africa, said. "Because the future of consumer brands will be shaped largely in these markets, it is critical to establish a strong connection to its dynamic ecosystem of disruptors and to invest in promising consumer brand startups."

The development comes at a time when internet-first beauty and personal care brands like Mamaearth, Sugar, and Nykaa have experienced rapid growth in recent years. According to an ET report from August 16, 2022, the beauty and personal care category is driving ecommerce consumption in India, with 143% growth in volume year on year.