Mumbai: Venture capital firm Sequoia India on Wednesday said it had agreed to acquire Faces Cosmetics Canada, a Canadian colour cosmetics brand along with its international subsidiaries and the ‘Faces’ brand from Indivision India Partners, managed by private equity firm Everstone Capital, for an undisclosed amount. The existing management team at Faces, led by chief executive Sharmili Rajput, will continue to manage the business, Sequoia said in a statement. Launched in India in December 2009, the Faces brand was set up over 40 years ago with a presence across North America. It was acquired by Indivision India Partners in 2007.

“The colour cosmetics market is the fastest growing category in personal care and we see a huge opportunity for the Faces brand. The Sequoia team will work with the Faces management to make significant investments and deploy operational expertise to unlock the brand’s full potential, as well as expand its portfolio and reach," said Abhay Pandey, managing director, Sequoia Capital India Advisors. The company has established its presence in e-commerce sites, 900 store-in-stores, 2,000 general trade stores and 13 exclusive brand outlets across 80 cities in India. Faces has a product portfolio of over 350 colour cosmetics and skin care products in India. The company reported sales of over Rs100 crore in 2016-17, the statement said. “Our aim is to grow our revenue by 5X over the next five years, through strengthening our geographic coverage, deepening our distribution, expanding the portfolio, and extending our iconic brand to adjacent skin care categories," Faces CEO Rajput said in the statement.

Everstone, an India- and Southeast Asia-focused private equity firm with assets under management of about $4 billion, has been looking to partly or completely exit several of its portfolio firms.

In April, Everstone sold part of its stake in education-focused publishing firm S. Chand Group when the company came out with its initial public offering. Several other Everstone portfolio companies such as commercial vehicle financing company Hinduja Leyland Finance Ltd and VLCC Health Care Ltd, which runs beauty and wellness centres, too filed for IPOs last year.

Sequoia India has been an active investor in the Indian consumer space. Last year it picked up a stake in domestic beer brand Bira 91, marking its first bet on an alcoholic beverage brand in India.

Its other major bets in the consumer space include Gurgaon-based Hector Beverages Pvt Ltd, which manufactures soft drinks and beverages under the Paper Boat brand, and Ahmedabad-based Vini Cosmetics Pvt. Ltd, the maker of Fogg deodorants.

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