Hindustan Unilever Set to Acquire Peak XV-Backed Minimalist for $340M: A Strategic Move in the Beauty Industry

Hindustan Unilever is making waves in the Indian beauty market by acquiring the innovative startup Minimalist for approximately $342 million. This strategic move underscores the consumer goods giant’s commitment to expanding its footprint in the rapidly growing premium skincare sector.

Details of the Hindustan Unilever and Minimalist Acquisition

The acquisition involves Hindustan Unilever purchasing a 90.5% stake in Minimalist through secondary buyouts and primary investments. The remaining 9.5% will be acquired from the founders in two years, as outlined in a recent stock exchange filing. This deal is anticipated to finalize in the June quarter, pending regulatory approvals.

Strengthening Unilever’s Portfolio

This acquisition aligns with Hindustan Unilever’s strategy to bolster its presence in the premium beauty market. With brands like Dove, Pond’s, and Lakmé already under its umbrella, the addition of Minimalist enhances its competitive edge. Known for its actives-led skincare products, Minimalist has achieved an annual revenue run rate exceeding ₹5 billion and has been profitable since its inception.

• Strong e-commerce presence
• Plans for offline distribution expansion
• Profitable since inception

Minimalist: A Rising Star in Skincare

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is based in Jaipur and offers a diverse range of products, from sunscreens to hair-repair serums. The startup attracted significant investment from Unilever Ventures during its Series A funding round in 2021, and it was among the first to receive backing from Peak XV through its Surge platform in late 2019.

Previous Acquisitions and Future Growth

This acquisition follows Hindustan Unilever’s recent expansions into the health and wellness sectors, marked by the acquisitions of Oziva and Wellbeing Nutrition last year. Rohit Jawa, CEO of Hindustan Unilever, stated, “This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high growth masstige beauty segment.”

Following the deal, Minimalist’s founders will continue to oversee operations for two years, ensuring a smooth transition and continued growth.

Valuation Insights

Interestingly, the deal values Minimalist at a higher rate than the approximately $300 million valuation it sought while attempting to raise venture capital in the latter half of the previous year, according to earlier media reports.

For more insights on the evolving beauty landscape, visit our Beauty Trends page or explore TechCrunch for the latest updates in the technology and startup sectors.