HUL To Acquire D2C Brand Minimalist At A Valuation Of INR 2,955 Cr

HUL To Acquire D2C Brand Minimalist At A Valuation Of INR 2,955 Cr

SUMMARY

HUL will also infuse INR 45 Cr in the brand and acquire the remaining 9.5% stake later in about two years from the completion date

Minimalist's founders Mohit Yadav and Rahul Yadav will continue to run the business operations for a period of two years

The transaction is expected to be completed in Q1 FY26

FMCG giant Hindustan Unilever Ltd (HUL) has signed an agreement to acquire D2C brand Minimalist for a cash consideration of INR 2,670 Cr. 

In an exchange filing, the company said that its board has signed and executed share purchase and subscription agreement for acquiring 90.5% stake in Uprising Science Private Limited, the parent of Minimalist, comprising secondary buyout for a cash consideration of INR 2,670 Cr at a pre-money enterprise valuation of INR 2,955 Cr. 

HUL will also make a primary infusion of INR 45 Cr in the brand and acquire the remaining 9.5% stake later in about two years from the completion date. 

The transaction is expected to be completed in the first quarter of the financial year 2025-2026 (Q1 FY26) 

HUL will acquire the shares from Minimalist founders Mohit Yadav and Rahul Yadav, Peak XV Partners, the VC firm’s seed investment platform Surge, and Twenty Nine Capital Partners.

Founded in 2020, Minimalist develops and sells clinically tested skincare, haircare and body care products using ‘active’ ingredients. It has raised about $15 Mn to date.

Peak XV was among the earliest investors in the startup and holds over 27% stake in it.

In a statement, HUL said that the acquisition is a step towards transforming its beauty and wellbeing portfolio. 

“We are excited to partner with the Minimalist team to unlock value through synergies and together, scale the brand to greater heights by leveraging our complementary capabilities,” HUL CEO and MD Rohit Jawa said.

Minimalist’s founders Mohit and Rahul will continue to run the business operations for a period of two years. 

“Now, with HUL’s robust offline distribution network, we look forward to making our products even more accessible across the country. This partnership also paves the way for our expansion into international markets, helping us realise our dream of taking Minimalist to the world,” the cofounders said in the statement. 

On the financial front, Minimalist’s net profit zoomed 110% to INR 10.9 Cr in the financial year 2023-24 (FY24) from INR 5.2 Cr in FY23 on the back of a strong growth in its top line. Operating revenue rose 89% to INR 347.4 Cr in FY24 from INR 183.8 Cr in FY23

HUL said that Minimalist currently has an annual revenue runrate of over INR 500 Cr. 

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