Hindustan Unilever in talks to buy skincare startup Minimalist for Rs 3,000 crore

Hindustan Unilever Limited (HUL), the fast-moving consumer goods giant, is reportedly in advanced discussions to acquire a majority stake in Jaipur-based skincare startup Minimalist for about Rs 3,000 crore, ET reported. 

If the deal proceeds, it would mark one of the largest acquisitions in India’s direct-to-consumer (D2C) segment in recent years, especially in the booming skincare space.

Minimalist's offerings 

Minimalist was founded by entrepreneurs Mohit Yadav and Rahul Yadav and specializes in skin and hair care products such as serums, toners and moisturizers. The brand sells its offerings through its own website and major e-commerce platforms, including Amazon, Nykaa and Flipkart.

The startup has seen rapid growth in recent years, with its revenue jumping to Rs 347 crore in the 2023-24 fiscal year from Rs 184 crore in 2022-23.

During the same period, its profits more than doubled to Rs 10.83 crore, reflecting a trend of strong financial discipline that has positioned the company as a rare profitable player in the D2C sector.

HUL's portfolio expansion

HUL, which previously acquired a 51% stake in D2C nutrition brand Oziva, appears eager to grow its digital business by adding high-growth startups to its portfolio.

The company acknowledged that, as part of its broader strategy, it routinely evaluates potential acquisitions but did not confirm any final decision regarding Minimalist. Industry sources suggest the valuation multiple for Minimalist could stand at around 10 times its annual revenue—significantly higher than the 4-6 times range commonly seen in similar deals.

Backing from notable investors

Peak XV Partners (formerly Sequoia Capital) is among Minimalist’s major external investors, holding a 27.9% stake. The co-founders together own roughly 62% of the company.

Having raised only about $17 million, Minimalist’s remarkable jump in valuation—from around Rs 630 crore to a potential Rs 3,000 crore—reflects its rapid expansion and steady profitability.

This comes at a time when major consumer companies are increasingly absorbing new-age brands to tap younger consumers and accelerate innovation. HUL’s interest follows similar moves by Marico, ITC and Dabur, which have also acquired or invested in digital-first brands.

While several D2C startups struggle to scale beyond a certain point, leading to what some call “slump sales,” Minimalist stands out as an example of consistent growth and profitability.