HUL likely to acquire skincare startup Minimalist in Rs 3,000 crore deal: Report
Post the acquisition, Minimalist's valuation may surge to Rs 3,000 crore from Rs 650 crore in just three years of span.
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Hindustan Unilever (HUL) is reportedly planning to acquire Jaipur-based skincare startup brand Minimalist. According to an exclusive report by Moneycontrol, the FMCG giant is likely to acquire Minimalist in a Rs 3,000 crore ($350 million) deal.
HUL already owns well-known brands such as Dove, Lakme, and Lux. Last time, HUL forayed into the ‘Health & Wellbeing’ category through strategic investments in Zywie Ventures Private Limited (OZiva) and Nutritionalab Private Limited (Wellbeing Nutrition).
Post the acquisition, Minimalist's valuation may surge to Rs 3,000 crore from Rs 650 crore in just three years.
Founded in October 2020, Minimalist raised $15 million in a Series A funding round by Sequoia Capital India, with participation from Unilever Ventures. The company has raised $17 million so far. Co-founders Mohit Yadav and Rahul Yadav hold 62 percent of the stake in the company while Peak XV (formerly known as Sequoia Capital) holds 27.9 percent stake.
The Peak XV Partners-backed startup is the fastest-growing direct-to-customer (D2C) brand in the country at present. It's the only startup in the skincare industry that registered profit in fiscal year 2024.
According to the data, Minimalist doubled its profit to Rs 10.83 crore in FY 24 from Rs 5 crore in FY 23. The company's revenue from operation surged to Rs 347 crore, up from Rs 184 crore in FY 23.
Available on e-commerce platforms like Nykaa, Flipkart, Amazon, Myntra, and others, Minimalist has doubled its advertising expenses to Rs 117 crore in FY 24 from Rs 65 crore in FY 23.
