Hindustan Unilever (HUL) is reportedly close to acquiring Jaipur-based skincare sensation Minimalist in a landmark deal valued at ₹3,000 crore. If sealed, this would mark a meteoric rise for Minimalist, boosting its valuation nearly fivefold in three years.
Hindustan Unilever (HUL), a beauty and personal care segment, is in advanced discussions to acquire Jaipur-based D2C skincare brand Minimalist. The deal, valued at ₹3,000 crore, would mark a dramatic leap for Minimalist, which was valued at ₹630 crore just three years ago. This acquisition would be one of the largest in India’s direct-to-consumer (D2C) sector.
Known for its ingredient-driven formulations, Minimalist has not only captured consumer trust but also emerged as a profitable D2C star. The acquisition could redefine HUL’s presence in the booming beauty and wellness market.
Minimalist reported a revenue of ₹350 crore for the fiscal year ending March 2024, an impressive 89% jump from the ₹184 crore achieved the previous year. Remarkably, the brand has been profitable for the last four years, a rare feat among D2C startups.
Founders Retain a Stake
The deal is expected to close by the end of the current quarter (Q4FY25). While HUL aims to secure majority control, brothers and co-founders Mohit Yadav and Rahul Yadav are likely to retain a stake.
Launched in 2020, Minimalist carved its niche in the skincare market by focusing on transparency and science-backed formulations. It gained early traction with Series A funding led by Unilever Ventures and Sequoia Capital India (now Peak XV Partners).
A Strategic Investment by HUL
This acquisition aligns with HUL’s strategy of strengthening its presence in the beauty and wellbeing space. The company has been monitoring Minimalist’s growth since its ₹110 crore funding round in 2021.
HUL’s move comes as it expands its portfolio in the health and wellness sector. In December 2022, the company acquired stakes in Zywie Ventures (OZiva) and Nutritionalab (Wellbeing Nutrition). It signals a broader strategy to diversify into high-growth, clean-label brands.
Beauty and Wellbeing: A Key Growth Driver
The beauty and wellbeing category already contributes 21% to HUL’s revenue, making it a vital segment for the company’s growth. With Minimalist in its fold, HUL can leverage the brand’s loyal consumer base and innovative product portfolio to solidify its leadership in India’s skincare market.
