The deal would give the ChrysCapital-backed firm a post-money valuation of $400–$420 million.
The firm’s current buyers may also top-up capital to keep up stake, stated one of many folks.
Last yr, ChrysCapital had acquired about 35% stake in Wow for $50 million, valuing it at Rs 900 crore.
“The company will look to expand its offline presence and will also push its online efforts by investing in technology,” one other supply stated.
It has additionally evaluated some smaller acquisition targets to fill product and distribution gaps, the supply added.
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Wow Skin Science and GIC didn’t reply to ET’s emailed queries.
Founded in 2014 by brothers Manish and Karan Chowdhary, Wow Skin Science sells toxin-free magnificence merchandise made with pure elements throughout classes comparable to pores and skin, hair, dietary dietary supplements, bathtub and physique, and wellness. It sells on e-commerce platforms, its personal web site, in addition to brick-and-mortar shops.
The firm’s working income grew to Rs 100 crore within the monetary yr ending March 31, 2021, from Rs 6.5 crore in FY20, filings with the Ministry of Corporate Affairs confirmed.
It recorded a loss in FY21 of Rs 8.8 crore in comparison with a revenue of Rs 9 lakh in FY20.
Wow competes with clear magnificence and pure magnificence D2C manufacturers comparable to Plum, EarthRhythm, Juicy Chemistry, Organic Harvest, mCaffeine, Beardo, Mamaearth and Bombay Shaving Company.
It additionally sells globally and has a presence in markets such because the United States, Middle East, and European Union.
D2C magnificence and private care corporations are gaining traction amongst buyers even amid fears of an impending slowdown in deal making. Companies comparable to Plum, Purplle, Sugar Cosmetics and Mamaearth have both lately raised cash or are within the strategy of finalising a brand new spherical, sources stated.
According to a contemporary report by Statista, the income in India’s magnificence and private care market quantities to $26.07 billion in FY22. The market is predicted to indicate 4.64% Compounded Annual Growth Rate between 2022 and 2026. “In the beauty and personal care market, 10.7% of total revenue will be generated through online sales by 2022,” the report stated.
GIC, one of many largest and oldest international buyers in India, has been ramping up its presence in early-stage corporations in India. It has invested in new-age corporations comparable to Locus, Razorpay, and Swiggy, amongst others.