HUL Set to Acquire Skincare Startup Minimalist in $350 Million Deal

According to sources familiar with the matter, Hindustan Unilever Limited (HUL) is in advanced talks to acquire Minimalist, a Jaipur-based skincare startup, in a deal valued at approximately Rs 3,000 crore ($350 million).

The acquisition will mark a remarkable growth trajectory for Minimalist, which has seen its valuation surge nearly fivefold from Rs 630 crore ($75 million) to Rs 3,000 crore in just three years. If completed, this deal would represent one of the most significant acquisitions in India's direct-to-consumer (D2C) skincare sector in recent years.

Minimalist has demonstrated strong financial performance, with revenue climbing 89 percent to Rs 350 crore in FY24 from Rs 184 crore in the previous fiscal year. During the same period, Minimalist's profits more than doubled from Rs 5 crore to Rs 11 crore, maintaining a profitable track record for four consecutive years.

Minimalist's valuation multiple of approximately 10X revenue significantly exceeds the industry standard of 4-6X for similar D2C ventures, reflecting its strong financial discipline and growth potential.

An HUL spokesperson discussed the partnership, "In line with our business strategy, we evaluate various strategic opportunities for growth and expansion. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws."

The potential acquisition comes three years after Minimalist raised Rs 110 crore ($15 million) from investors, including Unilever Ventures, the venture investing arm of HUL's parent company Unilever.

Numerous FMCG giants are acquiring new-age brands to expand their digital presence and reach younger consumers. Minimalist stands out as a rare success story in the D2C space, which has maintained a perfect balance between growth and profitability.

Unlike many D2C startups acquired at steep discounts due to scaling challenges, Minimalist's strong financial performance and growth trajectory have positioned it as a premium acquisition target in the consolidating D2C market.

Minimalist's founders, Mohit Yadav and Rahul Yadav, were unavailable for comment on the potential acquisition.