Hindustan Unilever Limited (HUL), one of India’s largest FMCG companies, has announced its acquisition of a 90.5% stake in the skincare startup Minimalist for a staggering ₹2,955 crore (approximately $342 million).
This acquisition not only highlights HUL’s strategy to strengthen its Beauty & Wellbeing portfolio but also marks one of the largest all-cash deals in the Direct-to-Consumer (D2C) sector in India.
Key Highlights of the Acquisition
1. Stake Acquisition: HUL will initially acquire a 90.5% stake in Minimalist through a combination of secondary buyouts and primary investment. The remaining 9.5% stake will be acquired from the founders within two years.
2. Valuation: The acquisition values Minimalist at a pre-money enterprise valuation of ₹2,955 crore.
3. Revenue Growth: Minimalist has demonstrated exceptional growth, achieving an annual revenue run rate exceeding ₹500 crore. The brand’s reported revenue for FY24 was ₹347 crore, a significant increase from ₹184 crore in FY23.
4. Founders: Minimalist was founded in 2020 by Mohit Yadav and Rahul Yadav. The brand focuses on actives-led skincare products and has been profitable since its inception. Post-acquisition, the founders will continue to lead the company.
A Strategic Move for HUL
This acquisition aligns with HUL’s broader vision to solidify its presence in the high-growth masstige beauty segment — a category that combines mass-market appeal with prestige.
According to HUL’s CEO Rohit Jawa, this move reflects the company’s commitment to staying ahead of evolving consumer demands in India’s beauty and skincare market.
“With Minimalist’s innovative approach and proven growth trajectory, we see immense potential to create value for consumers and further strengthen our portfolio,” said Jawa.
About Minimalist
Minimalist has carved a niche for itself in the skincare industry by offering effective, actives-based products at affordable prices.
With a mission to provide transparency and efficacy, the brand has gained a loyal customer base.
Minimalist’s profitability and rapid growth underscore its position as a standout player in India’s competitive beauty market.
Implications for the Indian D2C Ecosystem
The acquisition of Minimalist by HUL is being hailed as a milestone for India’s D2C landscape.
It demonstrates the potential for homegrown brands to scale rapidly and attract interest from global FMCG giants.
Industry experts believe this deal will inspire other startups to focus on innovation and profitability to appeal to larger investors.
What This Means for Consumers
For Indian consumers, this acquisition could mean an expanded range of high-quality skincare products under the Minimalist brand, backed by HUL’s resources and distribution network.
This partnership is expected to further enhance product accessibility across the country, including Tier 2 and Tier 3 cities.
Conclusion
HUL’s acquisition of Minimalist is a testament to the growing influence of India’s D2C brands and the increasing demand for premium skincare solutions.
As the beauty market continues to evolve, this strategic move positions both HUL and Minimalist for long-term growth and success.
