HUL Completes Acquisition Of 90.5% Stake In Minimalist

FMCG major Hindustan Unilever Ltd (HUL) said it has completed the acquisition of 90.5% stake in D2C personal care brand Minimalist’s parent Uprising Science Private Ltd. 

In a filing with the exchanges, HUL said that it completed the acquisition via a combination of primary infusion and secondary sales in an all-cash deal totalling INR 2,706.44 Cr. 

“… It is now informed that the company has completed the acquisition of 90.5% shareholding of Uprising and through a combination of primary infusion and secondary acquisition for a total cash consideration of INR 2,706,44,95,728…,” read the exchange filing. 

With this, Uprising Science and its subsidiaries have now become subsidiaries of HUL, the FMCG giant added. If reports are to be believed, early backer Peak XV Partners likely cashed out of the brand with a 10X exit of INR 800 Cr on its investment of INR 80 Cr in the startup.

This comes a month after the Competition Commission of India (CCI) approved HUL’s proposal to acquire a majority stake in the D2C personal care brand. 

In January, HUL signed an agreement to acquire a 90.5% stake in the D2C brand’s parent for a cash consideration of INR 2,670 Cr at a pre-money enterprise valuation of INR 2,955 Cr. This was one of the biggest acquisition deals in the Indian D2C ecosystem in recent years. 

The FMCG major will acquire the remaining 9.5% stake by investing INR 45 Cr in Minimalist in about two years from the date of completion of the acquisition. 

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist sells skincare, haircare and bodycare products. Prior to the acquisition, the D2C brand raised nearly $15 Mn from the likes of Unilever Ventures, Twenty Nine Capital Partners and Peak XV Partners. 

On the financial front, Minimalist’s net profit zoomed 110% to INR 10.9 Cr in the fiscal year 2023-24 (FY24) from INR 5.2 Cr in the year-ago period. Meanwhile, revenue from operations soared 89% to INR 347.4 Cr during the fiscal under review from INR 183.8 Cr in FY23. 

At the heart of all this is the burgeoning Indian D2C ecosystem, which has grown by leaps and bounds in the past decade on the back of the growing number of digital shoppers, tailored offerings and a wide assortment of products. 

As per Inc42 data, the homegrown D2C space is projected to become a $300 Bn market opportunity by 2030.