Hindustan Unilever has agreed to acquire beauty startup Minimalist for about $342 million, marking its latest push to expand in India’s fast-growing premium skincare market.
The consumer goods giant will initially acquire a 90.5% stake in the four-year-old direct-to-consumer brand through secondary buyouts and primary investment, with the remaining 9.5% to be purchased from founders in two years, according to a stock exchange filing.
The announcement confirms TechCrunch’s report from earlier this month.
The deal gives Unilever’s Indian unit a stronger foothold in the premium beauty segment, adding to its portfolio that includes brands like Dove, Pond’s and Lakmé. Minimalist, known for its actives-led skincare products, reported an annual revenue run rate of over 5 billion rupees and has been profitable since inception.
“This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high growth masstige beauty segment,” Rohit Jawa, CEO of Hindustan Unilever, said in the statement.
Founded in 2020 by Mohit Yadav and Rahul Yadav, Jaipur-based Minimalist sells a range of products from sunscreen to hair-repair serum. The startup had previously attracted investment from Unilever Ventures in its Series A round in 2021. Peak XV was its first institutional investor, leading the seed funding in the startup through its Surge platform in late 2019. Minimalist is one of the earliest Surge portfolio startups.
The acquisition follows Hindustan Unilever’s expansion into health and well-being through the purchases of Oziva and Wellbeing Nutrition last year. The latest transaction is expected to close in the June quarter, subject to regulatory approvals.
The founders will continue to run the business for two years after the deal closes. Minimalist has built a strong presence in e-commerce, which Hindustan Unilever plans to complement by expanding the brand’s offline distribution using its extensive retail network.
The deal values Minimalist higher than the roughly $300 million valuation it reportedly sought when attempting to raise venture capital in the second half of last year, according to previous media reports.