FMCG major Hindustan Unilever is understood to be in talks to acquire direct-to-consumer beauty startup Minimalist in a deal valued at about Rs 3,000 crore or $350 million. That’s well above Minimalists’ last known valuation of around $75 million. HUL’s investment arm Unilever Ventures invested in Minimalist’s Series A round in 2021 and holds a minor stake.
If the deal goes through, Minimalist would join a host of beauty and personal care brands at HUL, which includes Dove, Pond’s, Lakme, Lux, Simple, Acne-Squad, Dermalogica, Elle 18, Clinic Plus, TRESemme, Sunsilk, Find Your Happy Place, Liril, Love Beauty & Planet, Pears, Rexona, and Lifebuoy.
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The founders of Minimalist, Jaipur-based siblings Mohit Yadav and Rahul Yadav, together own 83.7% of the company, while the earliest backer Peak XV holds a 6% stake, as per Tracxn data. The company had raised a $2-million seed round in 2019 from Peak XV and then a $15 million Series A two years after that.
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Like most new-age beauty startups, Minimalist sells its products online through its own website and e-commerce channels like Nykaa as well as through offline channels. Its skincare and haircare products focused on active ingredients have helped it scale its revenue to Rs 350 crore in FY24, marking an 86% jump over the preceding financial year.
Most of the company’s products are priced between Rs 300-700. “We don’t believe a lot in terms of the pricing growth lever, instead we focus on more innovation and finding gaps which can be tapped,” co-founder and CEO Mohit Yadav had told Fe in a recent interaction.
Unlike most of its new-age competitors in the beauty and personal care category, Minimalist is profitable. In fact, it has been in the green since FY21, and in FY24 it doubled its net profit to Rs 10.8 crore.
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Among other D2C beauty brands, Sugar Cosmetics, mCaffeine, Wow Skin Sciences, Renee Cosmetics, Pilgrim, and even online retailer Purplle,
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