HUL Likely To Acquire Skincare Brand Minimalist In A Rs 3,000 Crore Deal: Report

Minimalist reported a revenue of Rs 350 crore for the financial year ending March 31, 2024, marking a nearly 89 per cent growth from Rs 184 crore in the previous year

The report further states that the company has been profitable for the past four years

Source : HUL

Hindustan Unilever Limited (HUL) is reportedly in talks to acquire Minimalist, a Jaipur-based skincare brand backed by Peak XV Partners, in a deal valued at approximately Rs 3,000 crore ($350 million). This potential acquisition would significantly expand HUL's presence in the growing skincare segment.

If the deal goes through, Minimalist's valuation is set to surge from Rs 630 crore to Rs 3,000 crore in less than three years, according to a Moneycontrol report citing sources. This would make it one of the largest transactions in the direct-to-consumer (D2C) sector in recent times.

Minimalist reported a revenue of Rs 350 crore for the financial year ending March 31, 2024, marking a nearly 89 per cent growth from Rs 184 crore in the previous year. The report further states that the company has been profitable for the past four years. Thanks to its strong financial discipline, Minimalist is commanding a revenue multiple of nearly 10X, significantly higher than the 4-6X typically seen in 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. ABP Live could not independently verify the report. 

HUL has been considering the acquisition of the skincare brand for the past three years, ever since Minimalist raised Rs 110 crore from Unilever Ventures, the private equity and venture capital arm of HUL. Unilever Ventures is the British company's investment branch, which oversees HUL operations in India and other regions.

The deal comes at a time when FMCG giants are increasingly acquiring new-age companies. This strategy not only enables large conglomerates to connect with a younger customer base but also allows startups to scale quickly by leveraging the vast networks established by FMCG players.

In addition to HUL, other FMCG companies like Marico, ITC, and Dabur have been acquiring emerging brands such as Beardo, Plix, Yogabar, and more, expanding their digital businesses in the process.