Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods (FMCG) company, is reportedly in advanced discussions to acquire Jaipur-based skincare startup Minimalist in a deal valued at approximately ₹3,000 crore ($350 million). The acquisition, if finalized, will mark a significant addition to HUL’s growing portfolio in the beauty and personal care segment, strengthening its position in the rapidly expanding direct-to-consumer (D2C) skincare market.
Minimalist: A Rising Skincare Star
Founded in 2020 by brothers Mohit and Rahul Yadav, Minimalist has made waves in the skincare industry with its transparent, ingredient-focused products. The brand has drawn comparisons to global skincare giant The Ordinary for its minimalist packaging and focus on scientific formulations.
Minimalist’s rapid growth is reflected in its financial performance. The startup nearly doubled its revenue from ₹184 crore in FY23 to ₹350 crore in FY24. Profits also surged during the same period, rising from ₹5 crore to ₹11 crore. These impressive numbers, combined with Minimalist’s strong consumer base and innovative product line, have made it an attractive acquisition target for HUL.
Deal Highlights and Valuation
The proposed deal values Minimalist at approximately 10 times its FY24 revenue, a significant premium compared to the typical 4-6x revenue multiples seen in the D2C sector. If successful, the acquisition will elevate Minimalist’s valuation from ₹630 crore in 2021 to ₹3,000 crore, underscoring its meteoric rise in just three years.
Strategic Fit for HUL
For HUL, the acquisition of Minimalist aligns with its strategy to capture high-growth opportunities in the beauty and personal care market. As the skincare sector witnesses a shift toward transparency, clean beauty, and ingredient-led innovation, Minimalist’s positioning complements HUL’s long-term vision.
HUL’s entry into the D2C space through Minimalist could help the FMCG giant access a younger, digital-savvy audience. The startup’s focus on online-first distribution and science-backed products positions it well to cater to evolving consumer preferences in India and globally.
Market Context and Trends
The deal is part of a larger trend among FMCG companies acquiring D2C brands to diversify their portfolios and leverage online consumer behavior. Recent years have seen major players like Emami, Marico, and ITC enter the D2C space through acquisitions or partnerships, recognizing the value of digital-first strategies and niche brand offerings.
Official Remarks
While no official confirmation has been provided yet, an HUL spokesperson stated, “We continuously evaluate strategic opportunities for growth and expansion. Any material developments will be communicated in due course.”
Minimalist has also remained tight-lipped about the acquisition talks.
Our Opinion on the News
This potential acquisition represents a win-win for both HUL and Minimalist. For HUL, it offers a pathway to tap into a high-growth segment and enhance its digital-first capabilities. For Minimalist, the deal provides access to HUL’s vast distribution network and marketing expertise, enabling the brand to scale to new heights.
As consumer preferences shift toward transparency, efficacy, and science-backed solutions, the integration of Minimalist into HUL’s portfolio could set a benchmark for how FMCG companies adapt to changing market dynamics. This move also highlights the growing importance of D2C brands in India’s retail landscape, making this a story to watch in the coming months.
Source: TechCrunch