American equity firm KKR has bought a controlling stake of Vini Cosmetics with an investment of $625 million. KKR has invested in the penalty of Indian firms including Reliance Retail and Reliance Jio. Vini Cosmetics is a Gujarat-based firm, known for its Fogg deodorant.
KKR Invests $625 Million in Vini Cosmetics
In a recent investment done by KKR in India, the American investment firm has acquired a controlling stake in Vini Cosmetics. The transaction will be officially closed by July 2021.
Vini Cosmetics is an eleven-year-old Gujarat-based cosmetic firm led by the father-son duo Darshan Patel and Dipam Patel. Vini Cosmetics Founders and existing investor Sequoia Capital have sold the majority of their stake to KKR during the current deal.
Westbridge Capital, another stakeholder of Vini Cosmetics, will also buy founders’ stake to increase its stake from 21% to 24%. The information was officially revealed by Vini Cosmetics through a press release.
The 11-year old company sells its products in over 55 countries and has a network of 7 lakh points of sale in India.
Darshan Patel will continue as the chairperson of Vini’s board, while Dipam Patel will be appointed as vice-chairperson. It did not divulge the co-founders’ current stake in the firm.
Vini Growth and Darshan’s Statement about Current Investment
Talking about Vini’s collaboration with KKR, Darshan said:
“Vini has experienced remarkable growth over the last 11 years, but we believe we are in the early stages of what our brands can deliver as consumer demand for high-quality personal care products continues to explode in India, South Asia, and other fast-growing markets around the world.”
He further added:
“KKR has a proven track record of investing in the growth of some of India’s most innovative and disruptive homegrown champions, as well as in leading consumer and personal care companies globally.”
Vini Cosmetics is one of the largest manufacturers and distributors of branded cosmetics. Founded in 2010, Vini Cosmetics has created a strong position by globally established cosmo brands including GlamUp, Fogg, OSSUM, and others.
The Gujarat-based firm sells its products in more than 55 countries with over seven lakh PoS. Globally, it has 3000 dealers with 1200 salespeople in India itself.
KKR has shown immense trust in Indian business firms recently. In 2020, It has invested in key companies including Lenskart, Reliance Jio, and Reliance Retail. It has a 1.2% stake in Reliance Retail and a 2.32% stake in Reliance Jio.
