In a significant move in the direct-to-consumer (D2C) segment, Hindustan Unilever Limited (HUL), a leading fast-moving consumer goods (FMCG) company, has announced the acquisition of homegrown skincare brand Minimalist. The deal values Minimalist at a pre-money valuation of Rs 2,955 crore (approximately $350 million).
HUL’s board has approved a share purchase agreement for acquiring 90.5% of Minimalist’s shares for Rs 2,670 crore in a secondary buyout, alongside a Rs 45 crore primary infusion into the company. The acquisition is expected to be completed in the first quarter of FY2026. The remaining 9.5% shareholding, currently held by Uprising, is set to be acquired within two years of the transaction’s completion, as per filings on the National Stock Exchange (NSE).
A Strategic Milestone in the D2C Space
This acquisition marks one of the largest deals in the D2C sector in recent years, further emphasizing the rapid evolution of the online-first skincare market. Founded by serial entrepreneurs Mohit and Rahul Yadav, Minimalist has emerged as a disruptor in the skincare industry, offering products like serums, toners, and moisturizers that resonate with modern consumers.
Stellar Growth and Performance
Minimalist’s meteoric rise in the past few years has made it an attractive target for HUL. The company reported a revenue surge from Rs 184 crore in FY23 to Rs 347 crore in FY24. Despite increased marketing expenditures, profits doubled to Rs 10.83 crore in the same period. Minimalist is currently operating at an annual revenue run rate (ARR) of Rs 500 crore, demonstrating its strong growth trajectory in just four years.
The Road Ahead for Minimalist
Following the acquisition, founders Mohit and Rahul Yadav will continue to lead the company for the next two years. The duo controls 62% of Minimalist, with Peak XV Partners (formerly Sequoia Capital India) holding a 27.9% stake. Minimalist had raised $17 million to date, including a Series A funding round, and was previously valued at Rs 565 crore ($65 million).
With HUL’s acquisition, Minimalist is expected to leverage the FMCG giant’s vast distribution network, marketing expertise, and resources to further scale its operations and cement its position as a leading player in the skincare market.
This acquisition underscores HUL’s commitment to expanding its footprint in the premium skincare and D2C segments, capitalizing on Minimalist’s strong brand equity and consumer-centric product lineup. As the deal progresses, it sets a new benchmark for consolidation in the burgeoning D2C ecosystem.
