Hindustan Unilever to Acquire Minimalist for $350M

Hindustan Unilever in Discussions to Acquire Minimalist

Hindustan Unilever, a leading global consumer goods company, is reportedly in advanced negotiations to acquire the direct-to-consumer (DTC) startup Minimalist. Sources indicate the potential deal value could reach up to $350 million.

Expanding Unilever’s Indian Presence

This potential acquisition would represent a continuation of Unilever’s strategic expansion within the Indian market. The company has been actively strengthening its portfolio through acquisitions, notably including Oziva and Wellbeing Nutrition in the health and wellness sector last year.

A spokesperson for Hindustan Unilever confirmed the company regularly assesses strategic opportunities to foster growth and business expansion, but declined to comment specifically on the ongoing discussions.

Strengthening Skincare Portfolio

The acquisition of Minimalist is expected to significantly enhance the skincare offerings of Unilever’s Indian subsidiary. HUL, boasting a market capitalization exceeding $65 billion, currently manages well-known brands like Dove, Pond’s, Lakmé, Sunsilk, Lux, and Lifebuoy.

While discussions are progressing, it’s important to note that a final agreement has not yet been reached, as cautioned by individuals familiar with the matter who requested anonymity due to the confidential nature of the deliberations.

Minimalist’s Recent Performance and Funding History

Reports suggest that Minimalist explored securing funding from venture capital firms in the latter half of the previous year, aiming for a valuation around $300 million.

Based in Jaipur, Minimalist specializes in a diverse range of skincare products, encompassing items such as sunscreen and hair-repair serums. The company experienced a substantial revenue increase of 89%, reaching $40.8 million in the fiscal year concluding in March 2024, and has confirmed profitability.

Existing Investment and Previous Funding Rounds

Hindustan Unilever already holds a stake in Minimalist, having invested during the startup’s Series A funding round in mid-2021 through its venture capital arm, Unilever Ventures.

Peak XV (formerly Sequoia Capital India) was the first institutional investor in Minimalist, leading the seed funding round in late 2019.

Neither Minimalist nor Peak XV Partners responded to requests for comment regarding the potential acquisition.