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Acquisition

Wipro Consumer Care buys 60% stake in Dermatouch

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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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