Hindustan Unilever to step up beauty business with Rs 2,955 Cr Minimalist deal
Hindustan Unilever is looking to increase its play in fast growing affluent beauty segment, add complementary offerings like serum.s and strengthen its presence in the ecommerce segment.
FMCG-major Hindustan Unilever is set to acquire a 90.5% stake in digital-first skincare brand Minimalist for an enterprise value of Rs 2,955 crore.
According to the company's third quarter investor presentation, the acquisition is a structure of secondary buy-outs and primary infusion. It plans to acquire the remaining 9.5% from Minimalist's founders in two years, as per terms set out in the transaction documents.
Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist offers an active ingredients-based skincare range in categories like serums, cleansers, sunscreens and moisturisers. The brand has an annual run rate (ARR) of over Rs 500 crore and has been profitable since inception.
HUL expects to close the transaction by the July quarter of fiscal 2025, subject to regulatory approvals. The Minimalist team will be lead by Mohit and Rahul, who will continue to run the business for a period of two years.
The acquisition comes four years after it raised Rs 110 crore in Series A funding led by Peak XV Partners (formerly Sequoia Capital India), with participation from Unilever Ventures, the venture and private equity arm of Unilever.
Minimalist's acquisition is driven by HUL's growing play in the affluent beauty market that focuses on premium brands with mass appeal. It is also planning to add categories like face and hair serums to its portfolio. Moreover, digital-first brands like Minimalist have a strong presence on ecommerce and quick commerce platforms, which are steadily growing as a preferred mode of purchase in urban users.
The deal comes as consolidation between legacy FMCG players and new-age D2C brands grows, as both seek synergies to tap on offline channels and reach younger cohorts.
Edited by Jyoti Narayan