Hindustan Unilever Limited (HUL) may acquire Jaipur-based skincare brand Minimalist, backed by Peak XV Partners, in a ₹3,000 crore ($350 million) deal, according to reports.
If the deal is finalised, Minimalist’s valuation will grow from ₹630 crore to ₹3,000 crore in nearly three years, Moneycontrol reported, citing sources. This will be one of the biggest deals in the direct-to-consumer (D2C) sector in the recent times.
Minimalist has reported a revenue of ₹350 crore in the financial year ended on March 31, 2024. This is an increase of nearly 89 per cent from the ₹184 crore reported in the previous year. According to the report, Minimalist has recorded profits in the last four years.
Due to its financial discipline, Minimalist is commanding revenue in nearly a multiple of 10X, much higher than the 4-6X recorded by similar D2C startup deals.
“We evaluate various strategic opportunities for the growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws,” the report quoted HUL spokesperson.
There has been no official response from Minimalist or its founders, Mohit Yadav and Rahul Yadav. Mint could not independently verify the report.
For three years, HUL has been toying with the acquisition of the skincare brand after it raised ₹110 crore from Unilever Ventures, the investing private equity and venture capital arm of HUL. It is the British company that runs HUL in India and other countries.
Emerging trend
This development comes as several FMCG majors eye new-age brands. Such deals help major companies attract young customers, as startups would be able to scale up quickly by taking advantage of networks that big players have access to.
Apart from HUL, major FMCG giants Marico, ITC, and Dabur have taken over young brands, including Beardo, Plix, Yogabar and others, to tap into young customers.
