Recently, Hindustan Unilever Ltd (HUL), a leading FMCG company, is reportedly in advanced discussions to acquire the direct-to-consumer (D2C) brand Minimalist for a valuation of $350 Mn (approximately INR 3,000 Cr), as per reports from the Economic Times. This strategic move aligns with HUL’s ongoing efforts to expand and diversify its business portfolio. However, HUL has maintained that it will disclose details only when legally required.
Founded in 2020 by brothers Mohit and Rahul Yadav, Jaipur-based Minimalist specializes in skincare, haircare, and body care products formulated with clinically tested active ingredients. Over the years, the startup has attracted investors like Peak XV Partners and Twenty Nine Capital Partners, raising $15 Mn in total funding.
Notably, Unilever Ventures, HUL’s investment arm, participated in Minimalist’s Series A funding round in 2021, valuing the brand between $75 Mn and $80 Mn.
Minimalist has demonstrated robust financial performance, with its net profit more than doubling to INR 10.9 Cr in FY24 from INR 5.2 Cr in FY23, driven by strong top-line growth. The acquisition could fill a notable gap in HUL’s beauty and personal care (BPC) portfolio, which lacks specialized serums and clinical-grade skincare products—a category in which Minimalist excels.
BPC contributes approximately 37% of HUL’s revenues, with brands like Dove, Lakmé, and Pond’s. However, the company faced a 5% decline in revenue from its personal care segment in Q2 FY25, partly due to pricing adjustments in the skin cleansing category. Acquiring Minimalist could provide HUL with a foothold in the rapidly growing D2C beauty segment and help mitigate revenue pressures.
If finalized, this would mark HUL’s first acquisition in the skincare-focused D2C space.
