Hindustan Unilever’s Strategic Acquisition of Minimalist: A Bold Step into India’s Premium Skincare Market
In an ambitious move to enhance its presence in India’s burgeoning premium skincare sector, Hindustan Unilever has announced an acquisition deal with the beauty startup Minimalist valued at approximately $342 million. This strategic decision marks a significant expansion for the consumer goods giant, aiming to deepen its roots in the direct-to-consumer skincare market.
Acquisition Details and Stake Distribution
According to a recent stock exchange filing, Hindustan Unilever plans to initially acquire a 90.5% stake in Minimalist through a combination of secondary buyouts and primary investment. The remaining 9.5% stake will be secured from the founders over the next two years. The transaction is anticipated to conclude in the June quarter, pending regulatory approvals, aligning with earlier reports by TechCrunch.
Strengthening Unilever’s Beauty Portfolio
This acquisition fortifies Unilever’s Indian division within the premium beauty segment, complementing its existing lineup of esteemed brands such as Dove, Pond’s, and Lakmé. Minimalist, renowned for its effective actives-led skincare products, has demonstrated a robust revenue run rate exceeding ₹5 billion and has maintained profitability since its inception.
“This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high growth masstige beauty segment,” remarked Rohit Jawa, CEO of Hindustan Unilever.
{Hindustan Unilever}
Minimalist’s Journey and Future Roadmap
Founded in 2020 by Mohit Yadav and Rahul Yadav in Jaipur, Minimalist has quickly established itself as a key player in e-commerce with its diverse range of products, from sunscreens to hair-repair serums. The startup had previously attracted investment from Unilever Ventures during its Series A funding round in 2021. Additionally, Peak XV was instrumental as its first institutional investor through its Surge platform back in late 2019.
Hindustan Unilever’s Broader Expansion Strategy
This acquisition is part of Hindustan Unilever’s broader strategy to diversify into health and wellbeing sectors, following last year’s acquisitions of Oziva and Wellbeing Nutrition. The integration of Minimalist into Hindustan Unilever’s extensive retail network is expected to bolster offline distribution significantly.
- The founders of Minimalist will continue managing operations for two years post-acquisition.
- The deal values Minimalist above its previous valuation estimates during venture capital raises last year.
A Promising Future for Both Entities
The partnership between Hindustan Unilever and Minimalist promises a synergistic growth trajectory, leveraging Unilever’s vast distribution capabilities with Minimalist’s innovative product offerings. As the beauty industry continues to thrive, this acquisition sets a precedent for strategic expansion and collaboration within the market.
