HUL in discussions to acquire skincare brand Minimalist for ₹3,000 crore

Hindustan Unilever Limited (HUL) is reportedly in talks to acquire the Jaipur-based skincare brand Minimalist, backed by Peak XV Partners, in a ₹3,000 crore ($350 million) deal.

If finalized, the acquisition would see Minimalist’s valuation increase from ₹630 crore to ₹3,000 crore in just three years, according to sources cited by Moneycontrol. This would make it one of the largest deals in the direct-to-consumer (D2C) sector in recent times.

Minimalist, which reported a revenue of ₹350 crore for the financial year ending March 31, 2024, has seen a nearly 89% growth from ₹184 crore the previous year. The brand has been profitable for the past four years.

Due to its strong financial performance, Minimalist is valued at nearly 10X its revenue, significantly higher than the 4-6X multiple typically seen in D2C startup deals.

An HUL spokesperson mentioned, “We evaluate various strategic opportunities for growth and expansion. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws.”

There has been no official comment from Minimalist or its founders, Mohit Yadav and Rahul Yadav. Mint was unable to independently verify the report.

HUL has reportedly been considering the acquisition of Minimalist for the past three years, especially after the brand raised ₹110 crore from Unilever Ventures, the investment arm of HUL.

This trend is part of a broader movement where major FMCG companies are acquiring new-age brands to attract younger consumers. Brands like Beardo, Plix, and Yogabar have also been acquired by companies like Marico, ITC, and Dabur to tap into the younger demographic.