The transaction by L’Oreal will support early-stage entrepreneurs in the beauty industry.

French cosmetics giant L’Oréal (EPA: OR) has invested in DSG Consumer Partners IV, a Singapore-based venture capital firm focused on consumer goods startups in Southeast Asia and India. This investment marks L’Oréal’s second investment in a fund targeting consumer trends in the region after a 2019 investment in Fireside Fund II, which supports innovative Indian consumer brand startups.

The investment was made through L’Oréal’s corporate venture capital fund BOLD, which invests in companies and brands that demonstrate high growth potential and innovative business models in areas such as consumer, marketing, research and innovation, digital, retail, communication, supply chain, and packaging. (Mint)

Vismay Sharma, president of L’Oréal South Asia Pacific, Middle East and North Africa (SAPMENA), said the move was driven by the young demographic in the region that is buying into beauty products. The markets in Southeast Asia and India are among the world’s most populous and fastest-growing with a younger population.

L’Oréal created the SAPMENA zone in 2021, which covers over 35 markets and aims to connect with the region’s dynamic ecosystem of disruptors and invest in promising consumer brand startups.

DSG Consumer Partners’ managing director Deepak Shahdadpuri said the firm’s aim is to accelerate innovation in emerging market consumers by collaborating with entrepreneurs who cater to new consumer aspirations and requirements.

L’Oréal’s investment will help the company back early-stage entrepreneurs in the beauty sector as they build next-generation consumer businesses.

L’Oréal generated sales amounting to 38.26 billion euros in 2022 and has 20 research centers across 11 countries and over 4,000 scientists and 5,500 tech and digital professionals dedicated to research and innovation.

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Image credit: L’Oreal