HUL in talks to acquire skincare start-up Minimalist for ₹3,000cr
What's the story
Hindustan Unilever (HUL) is said to be in advanced talks to acquire the direct-to-consumer skincare start-up, Minimalist.
The deal, which could be worth up to ₹3,000 crore, according to the media reports, would strengthen HUL's foothold in India's skincare market.
It also comes as the company recently ventured into the health and wellness space by acquiring stake in brands such as Oziva and Wellbeing Nutrition.
Business performance
Minimalist's impressive growth and profitability
Minimalist, a Jaipur-based company founded four years ago, has shown phenomenal growth.
The start-up's revenue jumped by 89% to ₹350 crore in the fiscal year ending March 2024.
Meanwhile, its profit more than doubled from ₹5 crore to ₹11 crore during the same period.
The company provides a range of skincare products including sunscreens, active ingredients such as Retinol and Niacinamide, and hair serums.
Strategic moves
HUL's expansion strategy and previous investment in Minimalist
A spokesperson for HUL told CNBC-TV18, "In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business."
The acquisition of Minimalist would strengthen HUL's portfolio which already boasts of popular brands like Dove, Lakme, and Lux.
Notably, HUL had previously invested in Minimalist via its venture arm Unilever Ventures during the start-up's Series A funding round in 2021.