Hindustan Unilever Ltd. (HUL) has made a significant move in India’s beauty and personal care industry by acquiring a 90.5% stake in Minimalist, a Jaipur-based skincare and haircare brand. This deal is one of the largest in the direct-to-consumer sector, showcasing HUL’s commitment to expanding its presence in the fast-growing beauty market.
Details of the Acquisition
The acquisition values Minimalist at a pre-money enterprise worth Rs 2,955 crore. HUL will pay Rs 2,670 crore in cash and provide a primary infusion of Rs 45 crore. The remaining 9.5% stake will be acquired within the next two years.
The deal is expected to close by the end of the June quarter in 2025, subject to approvals from the Competition Commission of India and other regulators. The valuation may undergo adjustments based on specific terms outlined in the agreement.
About Minimalist and Products
Minimalist, operated by Uprising Science Private Limited, was founded in 2018 by brothers Mohit Yadav and Rahul Yadav. The brand officially launched in 2020 and has gained popularity for its transparent approach to skincare, using the tagline #HideNothing.
Minimalist specializes in skincare and haircare products, including serums, toners, and moisturizers, all formulated with active ingredients backed by science. These products are available on Minimalist’s website and leading e-commerce platforms like Amazon, Nykaa, and Flipkart.
Founders to Continue Leadership
As part of the agreement, founders Mohit and Rahul Yadav will continue to lead Minimalist for the next two years. This ensures the brand’s values of transparency and efficacy remain intact as it transitions under HUL’s ownership.
Minimalist has demonstrated remarkable growth since its inception. The brand’s revenue grew from Rs 103 crore in FY 2021-22 to Rs 184 crore in FY 2022-23, and further to Rs 347 crore in FY 2023-24. Unaudited results for December 2024 suggest an Annual Revenue Run Rate (ARR) exceeding Rs 500 crore.
Profits have also seen substantial growth, rising from Rs 5 crore to Rs 11 crore over the same period. Minimalist’s disciplined spending and strong revenue performance have significantly boosted its valuation, which increased from Rs 630 crore three years ago to nearly Rs 3,000 crore today.
Backing from Investors
Before the acquisition, Minimalist’s major shareholders included its founders, who collectively held 61%, and Peak XV Partners Venture Investments VII with 27.4%. Other stakeholders included Surge Ventures II, Twenty Nine Capital Partners, and employees through stock ownership plans (ESOPs).
HUL’s acquisition will involve buying out these investors, including Peak XV Partners, which will receive Rs 895 crore for its stake. The founders are also set to gain Rs 1,800 crore collectively.
Future with HUL
Minimalist’s partnership with HUL brings access to a broader distribution network and deeper resources. HUL’s acquisition builds on its earlier investment in Minimalist through Unilever Ventures, which played a key role in the brand’s rapid growth.
With HUL’s support, Minimalist aims to maintain its commitment to transparency and product efficacy while scaling new heights in the beauty and personal care market.
