Hindustan Unilever to Acquire Minimalist for $340M+

Hindustan Unilever to Acquire Minimalist for $342 Million

Hindustan Unilever has reached an agreement to purchase beauty startup Minimalist for approximately $342 million. This strategic move aims to bolster the consumer goods company’s position within India’s rapidly expanding premium skincare market.

Deal Structure and Timeline

Initially, Hindustan Unilever will secure a 90.5% ownership stake in the direct-to-consumer brand. This will be achieved through a combination of secondary buyouts and primary investment. The remaining 9.5% will be acquired from the founders within a two-year timeframe, as detailed in a stock exchange filing.

The completion of this acquisition is anticipated during the June quarter, contingent upon receiving the necessary regulatory approvals.

Confirmation of Previous Reports

This announcement validates a report published by TechCrunch earlier this month, confirming the ongoing discussions surrounding the potential acquisition.

Strengthening Unilever’s Beauty Portfolio

The acquisition provides Unilever’s Indian division with a more substantial presence in the premium beauty sector. It complements their existing brand portfolio, which includes well-known names like Dove, Pond’s, and Lakmé.

Minimalist, recognized for its skincare products formulated with active ingredients, has demonstrated strong financial performance. The company has achieved profitability since its inception and currently maintains an annual revenue run rate exceeding ₹5 billion.

Expanding Distribution Channels

Minimalist has successfully established a robust online presence. Hindustan Unilever intends to leverage this by integrating the brand’s products into its extensive offline retail network, thereby broadening its reach.

Minimalist’s Background and Funding

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is based in Jaipur. The company offers a diverse range of products, including sunscreens and hair-repair serums.

Previously, Minimalist secured investment from Unilever Ventures during its Series A funding round in 2021. Peak XV was the startup’s initial institutional investor, leading the seed funding round through its Surge platform in late 2019. Minimalist was among the first companies to join the Surge portfolio.

Recent Acquisitions by Hindustan Unilever

This acquisition follows Hindustan Unilever’s recent expansion into the health and wellness sector, marked by the acquisitions of Oziva and Wellbeing Nutrition last year.

Executive Statement

“This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high growth masstige beauty segment,” stated Rohit Jawa, CEO of Hindustan Unilever, in an official statement.

Continued Leadership

The founders of Minimalist will continue to lead the business operations for a period of two years following the completion of the acquisition.

Valuation Details

The deal values Minimalist at a figure exceeding the approximately $300 million valuation the company was reportedly seeking during venture capital fundraising efforts in the latter half of the previous year, according to prior media coverage.