Hindustan Unilever in talks to buy skincare startup Minimalist
The deal would value the Jaipur-based D2C startup at Rs 3,000 crore, according to sources.
Nikhil Patwardhan
Friday January 03, 2025 , 2 min Read
Fast-moving consumer goods giant is in talks to buy skincare startup , three sources aware of the matter told YourStory.
Moneycontrol was the first to report on this.
The deal will value the Jaipur-based startup at Rs 3,000 crore compared to its current valuation of around Rs 630 crore, the report said.
Founded in 2018 by Mohit Yadav and Rahul Yadav, the company’s product portfolio ranges from serums to toners and moisturisers, among others.
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.
Peak XV Partners declined to comment on this matter.
“HUL does not have a presence in the hair and face serum category and so Minimalist could be a great fit for them. Minimalist has strong presence there. HUL will take the brand offline and help it grow further, “ said a venture capital investor who also explored an investment in Minimalist last year, requesting anonymity.
HUL competes with other FMCG companies such as ITC and Dabur, each of which have their own line of online skincare products. Additionally, conglomerates are increasingly tapping VC-backed startup to widen their product offerings. ITC, in 2023, acquired Bengaluru-based healthy snack company Yoga Bar.
The news also comes at a time when there is increased action in the country’s beauty and skincare segment fuelled by rising awareness and beauty trends.
Minimalist reported an 89% rise in its FY24 revenue to Rs 350 crore compared to Rs 184 crore which it had reported in FY23. During the period, the company also widened its net profit to Rs 11 crore from Rs 5 crore in the prior year period.
Minimalist’s co-founder Mohit Yadav did not respond to YourStory’s request for comment at the time of publishing this article.
“In line with our business strategy, on an ongoing basis, 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,” a company spokesperson for Hindustan Unilever said.
Minimalist competes with other online brands like Foxtale, Plum and Pilgrim, among others.
Edited by Jyoti Narayan