HUL in Talks to Acquire D2C Skincare Startup Minimalist for ₹3,000 Crore: Report

• ByStartupStory     |    January 4, 2025

In a significant development in the direct-to-consumer (D2C) space, FMCG major Hindustan Unilever Limited (HUL) is reportedly nearing a deal to acquire Jaipur-based skincare startup Minimalist in a transaction valued at ₹3,000 crore ($350 million). According to sources briefed on the matter, the deal, once finalized, will mark one of the largest acquisitions in the D2C skincare industry in recent years.

If successful, this acquisition will represent a meteoric rise in Minimalist’s valuation, which has grown from ₹630 crore (around $75 million) to ₹3,000 crore ($350 million) in just three years. This growth is attributed to the company’s consistent revenue increase and a stable profit profile.

Minimalist, founded by Mohit Yadav and Rahul Yadav, has been a standout performer in the D2C sector, maintaining profitability for at least four consecutive years. The company’s revenue nearly doubled in FY24, reaching ₹350 crore compared to ₹184 crore in FY23. Profits also more than doubled during the same period, rising from ₹5 crore to ₹11 crore.

The startup’s financial discipline is further evident in its valuation metrics. Minimalist is commanding a revenue multiple of approximately 10X, significantly higher than the 4-6X multiple typically seen in similar D2C deals.

Responding to media queries an 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.”

HUL’s interest in Minimalist comes three years after Unilever Ventures, the venture capital arm of its parent company, invested ₹110 crore ($15 million) in the startup to scale its operations.

This potential acquisition aligns with a broader trend of FMCG giants acquiring new-age brands to tap into younger customer bases and expand their digital footprints. Companies such as Marico, ITC, and Dabur have also made similar moves, acquiring brands like Beardo, Plix, and Yogabar.

While many of these deals have been characterized as slump sales, with D2C startups unable to scale sustainably, Minimalist stands out as an exception. Its robust financial performance and market discipline position it as a strategic and high-value acquisition for HUL.

The acquisition is expected to provide HUL with tech capabilities and access to Minimalist’s growing customer base while enabling Minimalist to leverage HUL’s vast network and resources for rapid scaling.

Minimalist’s founders, Mohit Yadav and Rahul Yadav, have not commented on the potential deal.

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