Hindustan Unilever has agreed to acquire beauty startup Minimalist for approximately $342 million, as the consumer goods giant seeks to expand in India's fast-growing luxury skin care market.
Hindustan Unilever will initially acquire a 90.5% stake in the direct-to-consumer brand through secondary acquisitions and primary investments, and plans to buy the remaining 9.5% from the founders within two years, according to stock exchange filings. That's what it means. The transaction is expected to close in the June quarter, subject to regulatory approvals.
The announcement confirms a TechCrunch report from earlier this month.
The deal will give Unilever's India arm a stronger foothold in the premium beauty space, adding to its portfolio of brands such as Dove, Pond's and Lakmé. Minimalist, known for its active ingredient-driven skin care products, reports an annual revenue run rate of over Rs 500 crore and has remained profitable since its inception.
Minimalist has built a strong presence in e-commerce and Hindustan Unilever plans to complement this by leveraging its extensive retail network to expand the brand's offline distribution.
Founded in 2020 by Mohit Yadav and Rahul Yadav, Jaipur-based Minimalist sells a wide range of products from sunscreens to hair repair serums. The startup previously raised investment from Unilever Ventures in a Series A round in 2021. Peak XV was the first institutional investor and led the startup's seed funding through the Surge platform in late 2019. Minimalist was one of Surge's early startups. portfolio.
The acquisition follows Hindustan Unilever's expansion into health and wellness through the acquisitions of Ojiva and Wellbeing Nutrition last year.
“This acquisition marks another important step in growing our beauty and wellbeing portfolio in the high-growth massage beauty segment,” Hindustan Unilever CEO Rohit Jawa said in a statement. ” he said.
Minimalist's founders plan to continue operating the business for two years after the transaction closes.
The deal valued Minimalist at a higher valuation of about $300 million, which it reportedly sought when it sought to raise venture capital in the second half of last year, according to previous media reports.