WOW Skin Science Seeks Strategic Buyer At Reduced Valuation Of $250 Mn

Beauty and skincare startup WOW Skin Science, valued at $400 Mn, is reportedly seeking a strategic buyer at a reduced valuation of $250 Mn.

As per ET’s report, citing sources familiar with the matter, this comes on the back of investors looking to make their exit from the startup.

Inc42 has reached out to WOW Skin Science for comments on the development. The story will be updated based on the response.

At least two strategic buyers have expressed interest in the company at the discounted valuation, one of the sources was quoted as saying in the report.

Founded in 2014 by Karan Chowdhary and Manish Chowdhary, WOW Skin Science is one of those brands that claim to formulate products with natural ingredients, and free from sulphates, parabens and artificial colouring among others.

Its product lines cover skincare, haircare, bathing, fragrance and nutrition.

“There was a formal process done a few months back (to find a buyer) and the same has been opened now in the New Year and there is interest, but valuation is where current conversations are underway,” the report said citing a source.

Investors are willing to take a hit and exit the venture at a flat valuation to their entry price, the source added.

The personal care brand also explored funding from venture investors as well, but the talks have fallen through and investors are now willing to go for a strategic sale, sources further said.

This development comes in contrast with the wide investors’ interest in backing D2C labels, while most of these startups are eyeing expansion into omnichannel play.

It is pertinent to note that the Bengaluru-based skincare brand was in talks with existing and new investors to raise fresh capital, in May last year.

In terms of its financial performance, Body Cupid Private Limited, which operates WOW Skin Science, narrowed its net loss by nearly 39% to INR 130.2 Cr in FY24 from INR 213.2 Cr a year ago.

However, the company’s revenue from operations declined almost 10% to INR 233.5 Cr during the year under review from INR 258.1 Cr in the previous fiscal year.

Updated 01:42 PM

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