Highlights
Hindustan Unilever to Acquire Majority Stake in Skincare Brand Minimalist
Hindustan Unilever, a leading player in the fast-moving consumer goods (FMCG) sector, is poised to acquire a 90.5% stake in the digital-first skincare brand Minimalist for an enterprise value of Rs 2,955 crore. According to the third quarter investor presentation of the company, this acquisition entails both secondary buy-outs and primary capital infusion. The acquisition terms include plans to purchase the remaining 9.5% stake from the founders of Minimalist within a two-year timeframe, as specified in the transaction documents.
About Minimalist
Established in 2020 by Mohit Yadav and Rahul Yadav, Minimalist delivers a skincare range centred around active ingredients. The product offerings encompass:
- Serums
- Cleansers
- Sunscreens
- Moisturisers
The brand has achieved an annual run rate (ARR) surpassing Rs 500 crore and has turned a profit since its inception.
Transaction Timeline and Leadership
Hindustan Unilever anticipates finalising the transaction by the July quarter of fiscal 2025, contingent upon securing regulatory approvals. The existing leadership of Minimalist, helmed by Mohit and Rahul, is expected to continue managing the business for an additional two years following the acquisition.
Strategic Growth in the Beauty Market
This acquisition follows a prior fundraising round in which Minimalist secured Rs 110 crore in Series A funding, primarily led by Peak XV Partners (previously known as Sequoia Capital India), with additional participation from Unilever Ventures, the investment arm of Unilever. The strategic acquisition aligns with Hindustan Unilever’s objective to enhance its presence in the lucrative beauty market, which is centred on premium brands appealing to a broad audience. Additionally, the company plans to expand its portfolio by incorporating new categories such as face and hair serums.
Focus on Digital-first Brands
Brands like Minimalist, which emphasize a digital-first approach, are gaining traction on e-commerce and quick commerce platforms, which are increasingly preferred by urban consumers. The unfolding deal highlights the trend of consolidation between traditional FMCG players and emerging direct-to-consumer (D2C) brands, as both aim to find synergies that will enhance their reach in offline channels and attract younger demographic groups.