Acquisition
Wipro Consumer Care buys 60% stake in Dermatouch
By Startup Enthusiast ·
- Date
- Company
- Dermatouch
- What it does
- Concern-based pharmacy skincare brand
- Kind
- Acquisition
- Amount
- ₹387.5 crore
- Based in
- Ahmedabad
What they do
Dermatouch makes face washes, soaps, serums and sunscreens for concerns like pigmentation and acne
What happened
Wipro Consumer Care & Lighting acquired a 60% stake at an enterprise value of ₹387.5 crore, with the rest to follow
Why it matters
This is Wipro's first acquisition of a digital-first brand and its 18th global acquisition
The details
- Wipro Consumer Care & Lighting acquired a 60% stake in Dermatouch.
- The enterprise value of the deal is ₹387.5 crore.
- Wipro paid ₹232.5 crore for the initial 60% stake.
- The remaining 40% will be acquired over the next three years.
- Founders Anish Nagpal and Amit Purswani will continue to run the business.
- This is Wipro Consumer Care's 18th acquisition globally and its third in the past month.
- It is also Wipro's first acquisition of a digital-first brand.
- Wipro recently acquired Good Home and Eva brands from TTK Healthcare for ₹256 crore.
The bigger picture
- India's skincare market is about ₹30,000 crore, with per capita consumption 10 times lower than China.
- Wipro Consumer Care's e-commerce sales are only 7-8% of overall sales, so Dermatouch adds online expertise.
- Wipro is interested in acquiring a haircare brand, which is missing from its portfolio.
- Wipro Consumer Care entered the food and snack market in FY23 and acquired Kerala RTC and Brahmin spice brands.
About the business
- Dermatouch is an Ahmedabad-based, made-in-India, concern-based pharmacy skincare brand.
- Its products include face washes, soaps, serums, creams, moisturisers and sunscreens.
- It targets skin concerns such as pigmentation, acne, brightening and sun protection.
- Dermatouch sells through its D2C platform, online marketplaces and offline retail.
- Its monthly sales grew from ~60,000 products/month two years ago to >60,000 products/day currently.
- Online sales account for 85-88% of its revenue, with the rest from offline channels.
- Products start from ₹149 on its website.
What happens next
- Wipro plans to increase Dermatouch's brick-and-mortar presence.
- Wipro aims to learn from Dermatouch's online success.
The deal
- Type
- acquisition
Founders
- Anish Nagpal, Co-founder
- Amit Purswani, Co-founder
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