By IBTeam Hindustan Unilever Limited (HUL), India’s largest fast-moving consumer goods (FMCG) company, is reportedly in advanced talks to acquire direct-to-consumer (D2C) skincare brand Minimalist for an estimated valuation of Rs 3,000 crore, according to industry insiders. The deal, expected to be finalized within the current quarter (Q4FY25), would mark a significant move for HUL to further expand its footprint in the burgeoning skincare and beauty market.
Minimalist: A Rising Star in Skincare
Launched in 2020, Minimalist has rapidly gained recognition for its ingredient-focused skincare solutions, appealing to consumers who value transparency and efficacy in personal care products. The Rajasthan-based brand, founded by brothers Mohit Yadav and Rahul Yadav, recorded revenue of Rs 347.4 crore in FY24, showcasing remarkable growth from Rs 183.8 crore in FY23. Its profit after tax (PAT) also doubled to Rs 10.8 crore in FY24 from Rs 5.2 crore the previous year.
Minimalist had previously raised Series A funding from Unilever Ventures and Peak XV Partners (formerly Sequoia Capital India), strengthening its financial and operational foundation.
Strategic Alignment with HUL’s Goals
HUL is keen to secure majority control of Minimalist while allowing the founders to retain a minority stake, the source added. A spokesperson from HUL stated:
“In line with our business strategy, we continually evaluate strategic opportunities for growth. Any material developments will be disclosed as per applicable laws.”
The potential acquisition aligns with HUL’s broader strategy to dominate the beauty and wellbeing category, which already accounts for 21% of its total revenue.
HUL’s Focus on Beauty and Wellbeing
HUL has been ramping up its presence in the beauty and wellness sector. In December 2022, the company announced its foray into the health and wellbeing space by acquiring stakes in Zywie Ventures (OZiva) and Nutritionalab (Wellbeing Nutrition), both of which specialize in clean-label and plant-based wellness products.
During the company’s Q2FY25 earnings call, HUL CEO and Managing Director Rohit Jawa highlighted the light moisturizer segment as a critical growth area:
“Consumers are seeking more than basic moisturization; they desire products that deliver superior benefits with pleasant, non-sticky experiences. This category is poised for significant growth.”
Jawa further emphasized the company’s success in e-commerce and beauty-focused channels, noting sustained market share growth and a double-digit revenue increase in the September quarter.
Valuation and Market Potential
The deal is expected to be valued at 8-10 times Minimalist’s FY24 revenue, underlining the brand’s strong performance and potential. Industry experts believe this acquisition could position HUL as a dominant player in the premium skincare segment, catering to evolving consumer preferences for ingredient-based and effective solutions.
Future Outlook
HUL’s aggressive pursuit of Minimalist underscores its commitment to shaping the aspirations of the modern Indian consumer. With a well-established distribution network, innovative product lines, and a growing focus on digital channels, HUL appears poised to leverage Minimalist’s strengths to further consolidate its leadership in the beauty and wellbeing market.
As the deal inches closer to completion, industry observers will watch how this acquisition reshapes the competitive landscape of the Indian skincare sector.