HUL Eyes Major D2C Deal: Plans to Acquire Minimalist

Hindustan Unilever (HUL) is in advanced talks to acquire the Jaipur-based skincare brand Minimalist, valued at an impressive ₹3,000 crore. If this deal goes through, it will be one of the largest acquisitions in the direct-to-consumer (D2C) sector in recent times, skyrocketing Minimalist’s valuation from ₹630 crore to ₹3,000 crore in just three years.

Launched in 2020, Minimalist is known for its ingredient-focused skincare products and has shown remarkable growth. The company reported ₹350 crore in revenue for the fiscal year ending March 31, 2024, marking an 89% increase compared to ₹184 crore the previous year. It has also been profitable for four consecutive years, which is no small feat in the competitive D2C space.

Sources indicate that HUL aims to finalise the deal by the end of the current quarter (Q4FY25). The acquisition would give HUL majority control, while Minimalist’s founders, Mohit Yadav and Rahul Yadav, might retain a minority stake.

Minimalist previously raised Series A funding from Unilever Ventures and Sequoia Capital India (now known as Peak XV Partners). This early investment appears to have been a stepping stone for HUL’s long-term strategy to acquire the brand.

This isn’t HUL’s first venture into the beauty and wellbeing space. In December 2022, the company acquired stakes in Zywie Ventures (makers of plant-based wellness products under the OZiva brand) and Nutritionalab, which operates Wellbeing Nutrition. HUL’s beauty and wellbeing segment already contributes to 21% of its revenue, and adding Minimalist to its portfolio would further strengthen its position in the rapidly growing D2C skincare market.

This potential acquisition highlights HUL’s aggressive expansion strategy and its focus on innovative and consumer-focused brands. For Minimalist, the deal could provide access to HUL’s vast distribution network and enable the brand to scale operations across India and beyond.