Hindustan Unilever Limited (HUL), one of India’s leading fast-moving consumer goods (FMCG) companies, is reportedly in advanced negotiations to acquire a majority stake in skincare startup Minimalist for an estimated Rs 3,000 crore (over $350 million). If finalized, this would mark one of the largest acquisitions in the direct-to-consumer (D2C) space in recent years, according to a report by Moneycontrol.
About Minimalist
Founded by serial entrepreneurs Mohit and Rahul Yadav, Minimalist has carved a niche in the skincare and haircare market by offering a range of high-performance products like serums, toners, and moisturizers. The brand operates both through its website and popular third-party e-commerce platforms such as Amazon, Nykaa, and Flipkart.
The company’s revenue from operations has shown significant growth, surging to Rs 347 crore in FY24 from Rs 184 crore in FY23. Despite an increase in marketing expenses, Minimalist’s profits doubled to Rs 10.83 crore during the same period. The company has raised $17 million to date, with Peak XV Partners (formerly Sequoia Capital) as its largest external shareholder, holding a 27.9% stake. Founders Mohit and Rahul Yadav collectively retain a 62% stake.
Strategic Significance for HUL
This potential acquisition aligns with HUL’s strategy to expand its presence in the fast-growing D2C market and strengthen its skincare portfolio. In December 2022, HUL acquired a 51% stake in Oziva, another D2C wellness brand, for Rs 264.28 crore.
Commenting on the development, a HUL spokesperson said, “In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws.”
Minimalist has yet to respond to queries regarding the potential deal.
A Milestone for the D2C Sector
The deal, if closed, would set a new benchmark for acquisitions in the D2C space. With HUL’s resources and expertise, Minimalist could scale its operations further, leveraging synergies in marketing, distribution, and R&D. This development underscores the growing interest of legacy FMCG companies in digitally native brands, reflecting a shift in consumer preferences toward personalized, ingredient-focused products.
As the Indian D2C landscape continues to evolve, this acquisition could pave the way for more such high-value deals, solidifying the importance of innovative startups in the consumer goods sector.
