Hindustan Unilever, a leading consumer goods corporation, is in advanced discussions to acquire the four-year-old direct-to-consumer startup Minimalist for a sum of up to $350 million, as revealed by two sources familiar with the situation.
If the acquisition goes through, it will contribute to the Unilever subsidiary’s expansion efforts in India, following last year’s purchases of Oziva and Wellbeing Nutrition to enhance its health and wellbeing sector.
“As part of our ongoing business strategy, we continuously assess various strategic opportunities for growth and expansion,” stated a Hindustan Unilever spokesperson to StartupSuperb.
This acquisition will enhance Unilever’s skincare range in India, which boasts a market capitalisation exceeding $65 billion. HUL manages renowned brands such as Dove, Pond’s, Lakme, Sunsilk, Lux, and Lifebuoy.
While discussions are progressing, a final agreement has yet to be reached, noted the sources, who spoke on the condition of anonymity due to the confidential nature of the negotiations.
In the latter half of the previous year, Minimalist sought interest from venture capital firms in an attempt to raise funds at an estimated valuation of around $300 million, according to a report by Mint.
Based in Jaipur, Minimalist offers a diverse skincare product range, including sunscreens and hair repair serums. The startup experienced an impressive revenue growth of 89%, reaching $40.8 million for the fiscal year ending in March 2024, and it reported profitability.
Hindustan Unilever is one of Minimalist’s investors, having taken part in the company’s Series A funding round in mid-2021 through its venture division, Unilever Ventures. Peak XV was the initial institutional investor in Minimalist, spearheading the startup’s seed funding in late 2019.
Minimalist and Peak XV Partners have not responded to requests for comments.
