FMCG giant Hindustan Unilever Limited (HUL) has purchased a 90.5% holding in Jaipur-based skin care company Minimalist for ₹2,955 crore. Announced during HUL’s quarterly results on January 22, this strategic action is a major leap in HUL’s pursuit to enter the direct-to-consumer (D2C) skincare market.
Hindustan Unilever Limited Acquires Minimalist
HUL also confirmed that it is acquiring the controlling stake via secondary buyouts and primary capital injection with the enterprise valued at a pre-money valuation of ₹2,955 Crore. Following the contractual agreement, the remaining 9.5% stake shall be purchased in the next two years from Minimalist founders, Rahul and Mohit Yadav.
This acquisition is indicative of a commitment by the company to enhancing its foothold in the skincare market, building on Minimalist’s innovative product portfolio and bloodstock performance.
Minimalist’s Rapid Growth Fuels the Deal
Minimalist, a scientifically validated, transparent skincare portfolio, grew exponentially in the past three years. Its valuation skyrocketed from ₹630crore to ₹3,000crore on the back of a phenomenal 89% revenue growth in FY24 to ₹350crore and a doubling of the net profit to ₹11crore. This financial discipline enabled Minimalist to command a revenue multiple of 10x, far outpacing the 4-6x typically seen in similar D2C acquisitions.
HUL’s investment is also one of the biggest investments in the Indian D2C skincare market, which shows, its belief in the brand’s future. Interestingly, not only did HUL already express interest in Minimalist, but Unilever Ventures even participated in a ₹110 crore funding round three years back.
The deal has made Minimalist a major force in the sector and enabled HUL to reach out to a high-growth, profitable brand. With the founders of As Minimalist continuing to run the company, this collaboration is expected to catalyze new innovation and expansion.
With “HUL Acquires Minimalist” as the focal point of this major deal, all eyes are on how this move will shape the future of the skincare market.
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