Hindustan Unilever (HUL), one of India’s biggest FMCG companies, has taken a major step into the growing direct-to-consumer (D2C) beauty and skincare market by acquiring a 90.5% stake in Jaipur-based Minimalist. This acquisition, valued at nearly Rs 2,955 crore, marks one of the most significant deals in the Indian beauty industry. Let’s break down the details of this big move and what it means for both HUL and Minimalist.
HUL Expands Its Footprint in the Skincare Market
The deal sees Hindustan Unilever buying a 90.5% stake in Minimalist for a cash consideration of Rs 2,670 crore and a primary infusion of Rs 45 crore. The acquisition is expected to be completed by the June quarter of 2025, pending regulatory approvals from the Competition Commission of India and other authorities. HUL has also planned to acquire the remaining 9.5% stake in the next two years.
This strategic acquisition gives HUL an entry into the fast-growing skincare and personal care market, aligning with the increasing demand for direct-to-consumer skincare brands in India. With Minimalist’s focus on high-quality, science-backed skincare products, HUL can now tap into a young, digital-first customer base.
What is Minimalist and Why is it So Popular?
Minimalist, a skincare and haircare brand founded in 2020 by brothers Mohit and Rahul Yadav, has built a reputation for offering affordable, effective products. Known for their transparency, the brand’s slogan, “#HideNothing,” emphasizes clear labeling and honesty about ingredients—something that resonates well with today’s conscious consumers.
The company offers a variety of skincare products such as serums, toners, moisturizers, and other essentials. What sets Minimalist apart is its focus on “actives-led” formulations. These products are designed to target specific skin issues, offering practical solutions that consumers can trust.
Fast Growth and Strong Financial Performance
Despite being a relatively new player in the skincare industry, Minimalist has seen remarkable growth since its launch in 2020. In just a few years, the brand’s turnover skyrocketed from Rs 103 crore in FY 2021-22 to Rs 184 crore in FY 2022-23. By FY 2023-24, it had reached an impressive Rs 347 crore. As of December 2024, its Annual Revenue Run Rate (ARR) is projected to exceed Rs 500 crore.
Not only has the brand posted impressive revenue growth, but its profitability has more than doubled as well. In the same period, Minimalist’s profits surged from Rs 5 crore to Rs 11 crore.
Why Did HUL Choose Minimalist?
Hindustan Unilever’s decision to acquire Minimalist can be seen as a way to tap into the growing D2C trend in the beauty and skincare industry. Minimalist’s transparency and science-backed approach to skincare align with consumer preferences, especially among younger buyers who demand more from their skincare brands.
With this acquisition, HUL gains access to a rapidly growing, profitable brand while also benefiting from Minimalist’s strong digital presence. The integration of Minimalist into HUL’s portfolio will help the company expand its reach, leveraging the brand’s loyal customer base and digital-first model. Furthermore, HUL’s vast distribution network will enable Minimalist to scale even more rapidly.
The Financials and Investor Backing
Minimalist’s rise to a nearly Rs 3,000 crore valuation is a result of disciplined spending, strong revenues, and a well-executed business model. The company was able to attract notable investors, including Peak XV Partners and Surge Ventures, before HUL’s acquisition.
Before HUL’s entry, the Yadav brothers held a majority stake in the company, with Peak XV Partners holding around 27.4%. The deal will see HUL buying out Peak XV, which is expected to make a substantial return on its investment. The founders, too, are set to benefit significantly from the deal, with their combined stake estimated to be worth around Rs 1,800 crore.
Interestingly, HUL had already invested in Minimalist through Unilever Ventures three years ago, helping the brand grow rapidly. Now, as HUL steps in for a larger stake, the partnership promises even more growth opportunities.
What’s Next for Minimalist?
The Yadav brothers will continue to manage the business for the next two years as part of the agreement. Their leadership will likely be crucial in maintaining Minimalist’s brand identity, which has focused on high-quality, transparent skincare products. However, with HUL’s backing, the brand is expected to expand its product range and distribution channels, reaching more consumers both online and offline.
One of the most exciting aspects of this deal is the potential for Minimalist to grow even faster under HUL’s guidance. With access to HUL’s global resources, supply chain, and distribution network, the brand can expand its reach to more regions in India and potentially overseas.
The Future of India’s Beauty Industry
This acquisition highlights the rapid growth of India’s beauty and personal care industry, especially in the D2C space. Consumers are increasingly looking for brands that offer transparency, high-quality products, and a personalized experience. Minimalist, with its focus on science-backed skincare and honesty, has tapped into these trends effectively.
As more brands like Minimalist grow, it’s clear that the future of skincare in India lies in the hands of direct-to-consumer brands that prioritize consumer trust, quality, and innovation.
Conclusion
The acquisition of Minimalist by Hindustan Unilever is a major move in the Indian beauty and skincare market. With its transparent approach to skincare and impressive financial growth, Minimalist has established itself as a formidable player in the industry. By acquiring a controlling stake, HUL is not only expanding its product portfolio but also strengthening its presence in the rapidly growing D2C skincare market.
As we watch this deal unfold over the next few years, one thing is clear: Minimalist’s future looks even brighter with HUL’s support, and the beauty industry in India is set for even more innovation and growth.
