HUL in advanced talks to acquire Minimalist for Rs 3000 crore

Hindustan Unilever (HUL) is in advanced discussions to acquire Jaipur-based D2C skincare brand Minimalist, valued at Rs 3,000 crore.

If finalised, the deal will boost Minimalist's valuation from Rs 630 crore to Rs 3,000 crore in just three years, Moneycontrol reported, citing sources. This would mark one of the largest recent deals in the D2C sector.

Minimalist reported Rs 350 crore in revenue for the fiscal year ending March 31, 2024, an 89% increase from Rs 184 crore the previous year. The report also noted that Minimalist has been profitable for the past four years.

According to a Business Standard report, HUL is likely to finalise the deal within the current quarter (Q4FY25) with the intent to secure majority control. Minimalist’s founders, Rajasthan-based brothers Mohit Yadav and Rahul Yadav, may retain a stake in the company.

Launched in 2020, the brand is known for its ingredient-focused skincare products. It raised Series A funding from Unilever Ventures and Sequoia Capital India (now Peak XV Partners).

HUL has been considering acquiring the skincare brand for three years, following its Rs 110 crore funding round led by Unilever Ventures, the private equity and venture capital arm of its British parent company.

In December 2022, HUL entered the health and wellbeing sector, announcing agreements to acquire stakes in two companies: Zywie Ventures, which offers plant-based, clean-label wellness products under the OZiva brand, and Nutritionalab, under Wellbeing Nutrition.

The beauty and wellbeing segment accounts for 21% of HUL's revenue.