1 week Ago
Hindustan Unilever Limited (HUL) may reportedly acquire Jaipur-based skincare brand Minimalist, backed by Peak XV Partners, in a ₹ 3,000 crore ($350 million) deal. Minimalist will see a valuation growth from ₹ 630 crore to ₹ 3,000 crore in nearly three years if the deal is finalised, Moneycontrol reported, citing sources. This will be one of the biggest deals in the direct-to-consumer ( D2C ) sector in recent times.
Minimalist has reported a revenue of ₹ 350 crore in the financial year ended on March 31, 2024. This is an increase of nearly 89 per cent from the ₹ 184 crore reported in the previous year. According to the report, Minimalist has recorded profits in the last four years.
Due to its financial discipline, Minimalist is commanding revenue in a nearly multiple of 10X, which is much higher than the 4-6X recorded by similar D2C startup deals. “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," the report quoted HUL spokesperson.
There has been no official response from Minimalist or its founders, Mohit Yadav and Rahul Yadav. Mint could independently verify the report. It has been three years since HUL has been discussing the acquisition deal with the skincare brand after it raised ₹ 110 crore from Unilever Ventures, the investing private equity and venture capital arm of HUL.
It is the British company that runs HUL in India and other countries as well. Emerging trend This development is reported when several FMCG majors acquire new-age brands. Such deals help major companies attract young customers, while startups scale up more quickly by taking advantage of networks that big players have access to.
Apart from HUL, major FMCG giants such as Marico, ITC, and Dabur have taken over young brands, including Beardo, Plix, Yogabar and many others, to tap into young customers..
