HUL acquires 90.5% stake in beauty start-up Minimalist for ₹2,955cr
What's the story
India's leading FMCG giant Hindustan Unilever (HUL) has announced the acquisition of a 90.5% stake in Jaipur-based direct-to-consumer (D2C) beauty brand Minimalist.
The deal values the company at a pre-money enterprise value of ₹2,955 crore.
As part of the agreement, the remaining 9.5% stake will be acquired from founders Rahul and Mohit Yadav within two years.
Acquisition details
Minimalist's operational continuity and HUL's strategic goals
The Yadav brothers and their team will continue to run Minimalist for the next two years.
Through this acquisition, HUL hopes to leverage synergies and complementary capabilities between both companies.
The transaction will close by the June quarter of 2025, subject to regulatory approvals and customary closing conditions.
Brand evolution
Minimalist's growth and market position
Founded in 2018, Minimalist has grown rapidly, providing a variety of skin, body, and hair care products across multiple sales channels.
The brand was last valued at $75-80 million during its previous funding round where it raised ₹110 crore.
Recent reports suggested that Minimalist was in talks with financial investors such as Premji Invest for a valuation of ₹2,000 crore-₹3,000 crore.
Market strategy
HUL's strategic shift toward premium beauty products
This acquisition fits HUL's focus on premium, high-margin segments and Unilever's global strategy to tap into low-penetration categories.
HUL has been restructuring its beauty and personal care (BPC) division to focus more on premium offerings.
As of now, this division contributes nearly a fifth of the company's revenue and about a third of its profits.
Portfolio growth
HUL's portfolio expansion and market competition
HUL's portfolio, which was dominated by mass-market brands such as Sunsilk, Clinic Plus, Lux, and Lakme, has expanded to include 'masstige' and digital-first brands such as Dermalogica, Simple, and Love Beauty & Planet.
The acquisition of Minimalist is a major step in capturing the growing demand for niche premium beauty brands.
India's beauty market is getting competitive with focused brands such as L'Oreal, Mama Earth, Nykaa collectively holding 33% market share.