New Delhi: L’Oréal, the French cosmetics giant, is investing in Singapore-based venture capital firm DSG Consumer Partners IV, which targets consumer goods startups in Southeast Asia and India. The move will help L’Oréal back early-stage entrepreneurs in the beauty sector as they build next-generation consumer businesses.
New Delhi: L’Oréal, the French cosmetics giant, is investing in Singapore-based venture capital firm DSG Consumer Partners IV, which targets consumer goods startups in Southeast Asia and India. The move will help L’Oréal back early-stage entrepreneurs in the beauty sector as they build next-generation consumer businesses.
This marks the company’s second investment in a fund targeting consumer trends in the region, following a 2019 investment in Fireside Fund II, a fund managed by Fireside Ventures to support innovative Indian consumer brand startups.
This marks the company’s second investment in a fund targeting consumer trends in the region, following a 2019 investment in Fireside Fund II, a fund managed by Fireside Ventures to support innovative Indian consumer brand startups.
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The move was driven by a young demographic in the region that is buying into beauty products.
“The Southeast Asia and India region has many of the fastest growing, most populous and young demographic markets of the world. The future of consumer brands will largely be shaped in these markets, so it’s important to build a strong connection to its dynamic ecosystem of disruptors and invest in promising consumer brand startups,” said Vismay Sharma, president of L’Oréal South Asia Pacific, Middle East and North Africa (SAPMENA).
In 2021, L’Oréal created the SAPMENA zone, headquartered in Singapore. Bringing together over 35 markets, L’Oréal’s SAPMENA covers the fastest growing, most populous and young demographic markets of the world. With 40% of the world’s population, growing beauty aspirations, and an average consumer age of just 28 years, this region is the next frontier of global growth, the company said.
The investment was made through L’Oréal’s corporate venture capital fund BOLD (Business Opportunities for L’Oréal Development), which takes minority stakes in high-growth companies and brands. The fund invests in new business models in consumer, marketing, research and innovation, digital, retail, communication, supply chain and packaging and provides startups with L’Oréal’s expertise, networking and mentorship.
“We are excited to welcome L’Oréal as an investor in our ecosystem, and partner in our mission to invigorate the region’s industry disruptors and most promising startups. Through this fund, we aim to catalyze emerging market consumer innovation by working with entrepreneurs who are addressing new consumer aspirations and needs,” said Deepak Shahdadpuri, managing director (Singapore) of DSG Consumer Partners.
In 2022, the L’Oréal Group generated sales amounting to 38.26 billion euros. The company has 20 research centres across 11 countries around the world and a dedicated research and innovation team of over 4,000 scientists and 5,500 tech and digital professionals.
