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(L-R): Rohit Jawa, CEO and Managing Director of Hindustan Unilever Limited and Mohit Yadav, co-founder of Minimalist skincare
In a move that marks one of the largest direct-to-consumer deals in India’s beauty and personal care industry, Hindustan Unilever Ltd. has signed a definitive agreement to acquire a 90.5% stake in the Jaipur-based skincare and haircare brand Minimalist.
The acquisition is valued at a pre-money enterprise worth of Rs 2,955 crore, with a cash consideration of Rs 2,670 crore and a primary infusion of Rs 45 crore.
Notably, the FMCG major will acquire the remaining 9.5% stake in about two years.
Deal to close by June quarter of 2025
The transaction is subject to approvals from the Competition Commission of India and other necessary regulators.
The pre-money enterprise valuation of Rs 2,955 crore may be adjusted in accordance with stipulations set out in the SPSA. HUL announced that the deal is expected to close by the end of the June quarter of 2025—referred to as Q1 of FY 2026—though the timeline may be extended if required by the terms of the agreement.
Minimalist offerings
Minimalist is operated by Uprising Science Private Limited, incorporated in May 2018. The brand debuted in 2020 and was co-founded by brothers Mohit Yadav and Rahul Yadav, who have built the company on the principle of transparency in skincare and haircare products, adopting the tagline #HideNothing.
The brand, which specializes in skin and hair care products such as serums, toners and moisturizers, focuses on actives-led formulations that promise efficacy driven by science.
Minimalist sells its offerings through its own website and major e-commerce platforms, including Amazon, Nykaa and Flipkart.
As part of the deal, the Yadav brothers will continue to manage the business for the next two years.
Financial performance
Despite its young age, Minimalist has posted remarkable growth and remained profitable since inception. The brand's turnover increased from Rs 103 crore in FY 2021-22 to Rs 184 crore in FY 2022-23, then jumped to Rs 347 crore in FY 2023-24. Unaudited management results for the December 2024 quarter suggest its Annual Revenue Run Rate (ARR) now exceeds Rs 500 crore.
During this period, profits have more than doubled, rising from Rs 5 crore to Rs 11 crore.
According to industry data, Minimalist’s valuation soared from around Rs 630 crore about three years ago to nearly Rs 3,000 crore in large part due to disciplined spending and consistently strong revenues.
Backing from notable investor
Before entering into the deal with HUL, Minimalist’s major shareholders included founders Mohit and Rahul Yadav, who collectively held around 61%; Peak XV Partners Venture Investments VII with 27.4%; Surge Ventures II; and Twenty Nine Capital Partners. Employee stock ownership plans (ESOPs) also constituted a small stake.
HUL’s purchase will involve buying out investors such as Peak XV Partners, which is expected to realize a substantial return on its original Rs 79 crore investment. Peak XV’s portion of the buyout will reportedly total Rs 895 crore. The transaction also envisions significant gains for the founders, estimated at Rs 1,800 crore collectively.
Three years ago, Minimalist raised Rs 110 crore from various investors, including Unilever Ventures—an investment that proved instrumental in fueling its rapid scale-up. Now, with HUL entering the scene, the brand gains access to a broader distribution network and deeper resources while pledging to maintain the same commitment to transparency and product efficacy.