Hindustan Unilever In Talks To Buy D2C Brand Minimalist For $350 Mn

FMCG giant Hindustan Unilever Ltd (HUL) is reportedly in talks to snap up D2C brand Minimalist. 

The deal is currently in the advanced stages and could potentially see the D2C startup valued at $350 Mn (roughly INR 3,000 Cr), Moneycontrol reported, citing sources. 

“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws,” a spokesperson of HUL told the publication.

Inc42 has reached out to HUL and the brand to get more details on the transaction. The story will be updated based on their responses. Its investor, Peak XV Partners, declined to comment on the matter. 

Founded in 2020 by siblings Mohit and Rahul Yadav, Minimalist develops and sells clinically tested skincare, haircare and body care products using ‘active’ ingredients. 

The Jaipur-based startup has raised about $15 Mn from investors like Peak XV Partners, Twenty Nine Capital Partners, among others. Interestingly, Unilever Ventures picked up some stake in the startup in its Series A funding round in 2021. According to reports, the funding round valued the startup in a range of $75 Mn to $80 Mn. 

In the fiscal year 2023-24 (FY24), the startup’s net profit more than doubled to INR 10.9 Cr from INR 5.2 Cr in FY23 on the back of a strong growth in its top line.

Pertinent to mention that the beauty and personal care segment constitutes about 37% of HUL’s revenues. Its portfolio of BPC brands consists of Lifebuoy, LUX, Sunsilk, Clinic Plus, Dove, Lakmé, Pond’s and Closeup.

However, its portfolio doesn’t have specific serums for skincare, healthcare that Minimalist offers. Further, HUL also observed a decline in revenue from its personal care segment in the second quarter of fiscal year 2024-25 (Q2 FY25). 

“Personal Care declined 5% with negative pricing and low-single digit volume decline. Skin cleansing declined primarily on account of pricing actions taken during the year,” the company said in its investor presentation. 

If materialised, this would mark the first acquisition by the FMCG major in this space. 

Its last startup stake acquisition was of two D2C nutrition brands OZiva and Wellbeing Nutrition back in 2022. While it bought OZiva for INR 264.28 Cr, it acquired a 19.8% equity stake in Wellbeing Nutrition through primary infusion and secondary buyout for a consideration of INR 70 Cr.