Indian cosmetic major Lotus Herbals Pvt. Ltd. has announced acquisition of 32% strategic stake in Fixderma India Pvt. Ltd., owner of the Fixderma and FCL brand of dermaceuticals.
“With this strategic stake buy, Lotus Herbals forays into the dermaceutical segment offering a premium range of skincare and haircare products that bridge prescription-based products and over-the-counter cosmetics,” the company said in a statement.
The acquisition of a stake in Fixderma is Lotus Herbals’ second investment in Indian beauty and wellness sector, following its 100% acquisition of the certified organic Ayurveda brand Soul Tree in 2020, the statement added.
The deal comes months after VCCircle reported that Lotus Herbals was eyeing a controlling stake in another cosmetics and skincare brand Faces Cosmetics India Pvt Ltd, owned by Sequoia Capital.
Gurugram-based Fixderma is a direct-to-consumer (D2C) brand and its product lines retail through dermatologists and pharmacies in India and overseas.
Anurag Mehrotra, chairman, Fixderma India Pvt. Ltd, said, “Developments in the Indian skincare industry are exciting and challenging, especially in the e-commerce space however, the engagement level, passion and experiential resonance our customers have with our brands is amazing. We are thrilled to partner with Lotus to help strategically optimize this in a meaningful way."
Fixderma, along with its premium skincare range FCL, focuses on researching, manufacturing and marketing innovative dermatology products while working alongside renowned dermatologists in India and exports to over 35 countries globally. The formulations are developed based on the company's expertise in skin biology, and specialisation in dermatology and claims to use synthetic dyes and fragrances, mineral oils and petroleum building products for anti-acne, hair care, sun protection, anti-ageing and many other formulations for healthy skin.
Nitin Passi, joint managing director, Lotus Herbals, said, "With our strategic planning & marketing expertise, we aim at enhancing the global footprint for Fixderma and FCL and capture significant market share within the next five years as part of our long-term growth strategy.”
Lotus Herbals said it plans to maintain a distinctive brand identity for Fixderma and FCL in domestic and international markets while strategising the brand's expansion and growth trajectory.
Launched in 1993, Lotus Herbals competes with the likes of Himalaya Herbals, Biotique, Forest Essentials and Kama Ayurveda in the ayurveda-based personal care product market.
Deals in beauty care space
The broader beauty and personal care segment has seen multiple investments this year including the public listing of beauty products e-tailer Nykaa eyeing a valuation of $7 billion.
In what was slated as the highest transaction ever in the D2C segment, the Good Glamm Group, which owns D2C brand MyGlamm, acquired baby and mother-care products startup The Moms Co, for Rs 500 crore, earlier this month.
This year in July, personal care brand Mamaearth said it has raised $50 million from European investment firm Sofina Ventures SA and Sequoia Capital. A month prior to that, Marico, which sells Parachute hair oil and Saffola cooking oil, picked up a majority stake in a D2C personal care brand.
In April, private equity firm ChrysCapital acquired a stake in Wow Skin Science.