Hindustan Unilever has reached an agreement to purchase the beauty startup Minimalist for approximately $342 million, aiming to strengthen its presence in India’s rapidly expanding premium skincare sector.
Initially, Hindustan Unilever will secure a 90.5% ownership stake in the direct-to-consumer brand through a combination of secondary buyouts and primary investments. The remaining 9.5% will be acquired from the founders in two years, as detailed in a stock exchange announcement. The transaction is anticipated to finalize in the June quarter, pending regulatory approvals.
This announcement substantiates a prior report from TechCrunch earlier this month.
The acquisition strengthens Unilever’s foothold in the luxury beauty market in India, enhancing its existing portfolio, which includes brands such as Dove, Pond’s, and Lakmé. Minimalist, recognized for its skincare products focused on active ingredients, boasts an annual revenue run rate exceeding ₹5 billion and has been profitable since its inception.
Minimalist has established a robust presence in the e-commerce space, which Hindustan Unilever intends to bolster by broadening the brand’s offline distribution channels through its vast retail network.
Founded in 2020 by Mohit Yadav and Rahul Yadav, the Jaipur-based startup offers a diverse array of products, including sunscreens and hair repair serums. The startup attracted investments from Unilever Ventures during its Series A funding round in 2021. Peak XV was its initial institutional investor, leading the seed funding round via its Surge platform in late 2019, marking Minimalist as one of the first startups in the Surge portfolio.
This acquisition follows Hindustan Unilever’s recent ventures into the health and wellness sectors, which included acquiring Oziva and Wellbeing Nutrition last year.
“This acquisition marks a significant step in enhancing our Beauty & Wellbeing portfolio within the growing masstige beauty segment,” stated Rohit Jawa, CEO of Hindustan Unilever, in a press release.
Post-acquisition, the founders of Minimalist will continue to manage the business for a two-year period.
The valuation of the deal is higher than the approximately $300 million valuation that Minimalist sought during its attempts to secure venture capital in the latter half of last year, according to earlier media reports.
Compiled by Techarena.au.
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