Highlights
Hindustan Unilever Limited’s Potential Acquisition of Minimalist
Hindustan Unilever Limited (HUL), a leading player in the fast-moving consumer goods sector, is reportedly in advanced negotiations to acquire a majority stake in the skincare startup Minimalist for approximately Rs 3,000 crore (over $350 million). This acquisition could mark one of the largest transactions in the direct-to-consumer (D2C) market in recent years.
About Minimalist
Founded by experienced entrepreneurs Mohit and Rahul Yadav, Minimalist is a popular skin and hair care brand that offers a variety of products, including:
- Serums
- Toners
- Moisturizers
In the last fiscal year, the sales of these products constituted the sole source of revenue for the brand.
Distribution Channels
Minimalist distributes its products through:
- Its own website
- Third-party e-commerce platforms, including Amazon, Nykaa, and Flipkart.
Startup Superb has reached out to both HUL and Minimalist for further insights regarding this deal.
Financial Performance
In FY24, Minimalist’s revenue from operations increased significantly to Rs 347 crore, rising from Rs 184 crore in FY23. Even with rising marketing expenses, the company’s profits experienced a two-fold increase, reaching Rs 10.83 crore in the previous fiscal year.
Investment History
To date, Minimalist has secured around $17 million in funding, which includes a Series A round led by Peak XV (formerly known as Sequoia Capital). Peak XV currently holds a 27.9% stake, making it the brand’s largest external shareholder. The co-founders, Mohit and Rahul Yadav, collectively control 62% of the company according to various reports.
Previous Acquisitions by HUL
In a notable move within the D2C space, HUL acquired a 51% stake in the brand Oziva in December 2022 for a cash consideration of Rs 264.28 crore.
