SciFocus/Jan 3, 2025 — Hindustan Unilever Limited (HUL), India’s leading FMCG giant, is in advanced talks to acquire Minimalist, a Jaipur-based skincare startup, for approximately Rs 3,000 crore ($350 million). This potential acquisition highlights the growing interest of traditional FMCG players in the booming direct-to-consumer (D2C) skincare market.
“In line with our business strategy, we evaluate various strategic opportunities for the growth and expansion of our business.”
Key Highlights
– Valuation Surge: Minimalist’s valuation could jump from Rs 630 crore ($75 million) in 2021 to Rs 3,000 crore ($350 million) in 2024, reflecting its strong financial performance.
– Revenue Growth: The startup’s revenue soared by 89% in FY24, reaching Rs 350 crore, up from Rs 184 crore in FY23.
– Profitability: Minimalist has been profitable for four consecutive years, with profits doubling from Rs 5 crore in FY23 to Rs 11 crore in FY24.
– Strategic Move: This acquisition would be one of the largest in the D2C skincare space, helping HUL tap into a younger, digitally-savvy customer base.
– Unilever Connection: Minimalist previously raised Rs 110 crore ($15 million) from Unilever Ventures in 2021, strengthening its ties with the global FMCG giant.
Why This Matters
The deal underscores the growing trend of FMCG majors acquiring new-age D2C brands to expand their digital footprint and cater to evolving consumer preferences. Minimalist’s success story is a rare exception in the D2C space, where many startups struggle to scale profitably.
Future Implications
If finalized, this acquisition could set a benchmark for valuations in the D2C skincare industry. It also highlights the potential for startups to achieve exponential growth through financial discipline and innovative business models.
HUL’s potential acquisition of Minimalist marks a significant milestone in the Indian skincare and FMCG sectors. It reflects the increasing convergence of traditional and digital-first brands, paving the way for more such collaborations in the future.
Source: Moneycontrol
