Nykaa, L’Oréal venture fund to invest in Indian beauty brands

Nykaa and L’Oréal’s corporate venture capital fund Bold are partnering to invest in emerging Indian beauty and personal care brands.

Under the collaboration, Bold and Nykaa will take minority stakes in selected beauty and wellness brands. The investments will be financial and non-controlling, with founders retaining full ownership and continuing to operate their businesses independently, including their teams, culture and creative direction.

Beyond capital, the partners will offer portfolio brands mentorship and guidance, with access to L’Oréal’s global beauty expertise and Nykaa’s omnichannel retail network and consumer ecosystem in India.

The move follows Bold’s prior investment in Indian beauty brands Deconstruct and Arata.

“India is one of the most exciting beauty markets in the world, and its energy comes both from an expanding base of demanding consumers with rapidly evolving needs and from its ecosystem of tremendous entrepreneurs,” said Jacques Lebel, managing director, L’Oréal India.

“Through Bold and this partnership with Nykaa, we want to stand behind that talent — backing founders with capital, mentorship, and L’Oréal’s beauty expertise, while leaving them free to build their brands their way. Our commitment to India is stronger than ever, and this is the next major milestone in a journey of partnership and growth that we began over three decades ago.”

The partnership comes as India’s beauty market continues to expand, supported by its population of more than 1.4 billion people and rising consumer demand. India is projected to become one of the world’s fastest-growing luxury beauty markets, according to consultancy Kearney.

The Indian luxury beauty market recorded a five-year compound annual growth rate of 12% to reach $800 million in 2023, according to Kearney. The consultancy expects growth to accelerate to 14% annually, with the market projected to double to $1.6 billion by 2028 and reach $4 billion by 2035.

“Nykaa and L’Oreal have been partners in India for over a decade, working together on our shared vision of making India into one of the world’s largest and fastest growing beauty markets,” said Anchit Nayar, executive director and CEO, Nykaa Beauty. 

“The experience and lessons we have learned along the way have allowed us to understand what it takes to build a promising brand into an enduring one. Combining our strong consumer ecosystem, deep retail network and wide distribution, along with L’Oréal’s global beauty expertise will be an incredibly valuable asset to the next generation of founders as they look to build consumer brands that India can be proud of.”