Hindustan Unilever in Talks to Acquire Majority Stake in Minimalist for Over $350 Million

Hindustan Unilever Limited (HUL), India’s leading fast-moving consumer goods (FMCG) company, is reportedly in advanced discussions to acquire a majority stake in the skincare startup Minimalist. The deal, estimated at approximately Rs 3,000 crore (over $350 million), could mark one of the largest transactions in India’s direct-to-consumer (D2C) space in recent years. The development was first reported by Moneycontrol.

Founded by serial entrepreneurs Mohit and Rahul Yadav, Minimalist has emerged as a popular skincare and haircare brand offering products like serums, toners, and moisturizers. The brand retails through its own website and leading e-commerce platforms, including Amazon, Nykaa, and Flipkart.

Minimalist has demonstrated remarkable growth, with its revenue from operations increasing to Rs 347 crore in FY24 from Rs 184 crore in FY23. Despite rising marketing expenditures, the company’s profits doubled to Rs 10.83 crore during the same period.

HUL has not confirmed the deal details but acknowledged its ongoing evaluation of strategic opportunities. A spokesperson stated, “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.”

The skincare brand has raised $17 million to date, including a Series A round led by Peak XV Partners (formerly Sequoia Capital), which holds a 27.9% stake. Co-founders Mohit and Rahul Yadav collectively retain 62% ownership of the company.

The potential acquisition reflects HUL’s intent to strengthen its presence in the rapidly expanding premium skincare and personal care segments. In December 2022, HUL acquired a 51% stake in D2C wellness brand Oziva for Rs 264.28 crore, highlighting its growing focus on the D2C market.

With the skincare market in India on a steep growth trajectory, HUL’s move to acquire Minimalist underscores the increasing demand for innovative and consumer-focused brands that resonate with evolving consumer preferences.