Singapore’s GIC may pay $75m for Wow Skin Science’s participation

Mumbai: Singapore’s sovereign wealth fund, GIC, is in talks to acquire a significant minority stake in direct-to-consumer (D2C) beauty and personal care brand Wow Skin Science for $75 million, four people with direct knowledge of the company said. the agreement.

The deal would give the ChrysCapital-backed company a post-money valuation of $400-420 million.

The company’s existing investors will also raise capital to maintain the stake, one of the people said.

Last year, ChrysCapital acquired around 35% stake in Wow for $50 million, valuing it at Rs 900 crore.

“The company will look to expand its offline presence and also push its online efforts by investing in technology,” another source said.

It also evaluated some smaller acquisition targets to fill product and distribution gaps, the source added.

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Wow Skin Science and GIC did not respond to ET’s emailed queries.

Founded in 2014 by brothers Manish and Karan Chowdhary, Wow Skin Science sells toxin-free beauty products made with natural ingredients in categories including skin, hair, nutritional supplements, bath & body, and wellness. be. It sells on e-commerce platforms, its own website, as well as physical stores.

The company’s operating revenue rose to Rs 100 crore in the financial year ending March 31, 2021 from Rs 6.5 crore in the 2020 financial year, according to documents filed with the ministry. of Corporate Affairs.

It posted a loss in FY21 of Rs 8.8 crore compared to a profit of Rs 9 lakh in FY20.

Wow competes with D2C clean beauty and natural beauty brands such as Plum, EarthRhythm, Juicy Chemistry, Organic Harvest, mCaffeine, Beardo, Mamaearth and Bombay Shaving Company.

It also sells worldwide and has a presence in markets such as the United States, the Middle East and the European Union.

D2C beauty and personal care companies are gaining traction among investors, even amid fears of an impending slowdown in transactions. Companies such as Plum, Purplle, Sugar Cosmetics and Mamaearth have recently raised funds or are in the process of finalizing a new round, sources said.

According to a latest report from Statista, India’s beauty and personal care market revenue stood at $26.07 billion in FY22. The market is expected to grow at a compound annual growth rate of 4.64% between 2022 and 2026. “In the beauty and personal care market, 10.7% of total revenue will be generated from online sales by 2022,” the report said.

GIC, one of the largest and oldest global investors in India, has increased its presence in start-ups in India. He has invested in new-age companies such as Locus, Razorpay and Swiggy, among others.

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