Wow Skin Science, a popular direct-to-consumer (D2C) beauty brand, is reportedly seeking a strategic buyer as its investors look to exit. Sources familiar with the matter say the brand, which was previously valued at approximately $400 million, is now in talks with potential buyers at a significantly reduced valuation of around $250 million.
Growing Consolidation in the D2C Beauty Industry
The discussions come amid growing consolidation in the D2C beauty industry, with at least two strategic buyers expressing interest in acquiring the company at this lower price. According to one insider, the formal process of finding a buyer, which was initiated a few months ago, has been revived in the new year, but talks are still centered on valuation.
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“There’s clarity that only a few D2C brands will survive in this competitive beauty market, and consolidation seems inevitable,” said one person familiar with the discussions. Despite the challenges in scaling profitably in such a crowded space, investors are reportedly willing to exit at a valuation that is flat to their initial investment.
Top Executive Gives Statement
Manish Chowdhary, the founder of Wow Skin Science, denied the claims, calling them “false,” but did not offer further details. ChrysCapital, a major investor in the brand, declined to comment.
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The D2C beauty segment in India is seeing significant consolidation, as brands struggle to grow profitably amid fierce competition. Hindustan Unilever, for example, is reportedly in early talks to acquire Minimalist, another D2C brand, for around $350 million. Several other brands are also exploring similar opportunities.
