Hindustan Unilever Eyes Acquisition of Skincare Startup Minimalist in Expanding Strategy
In an intriguing move within the consumer goods sector, Hindustan Unilever is reportedly in advanced discussions to acquire the direct-to-consumer skincare startup, Minimalist, for a potential $350 million. This information comes from two insiders familiar with the negotiations. While the finalization of this deal remains uncertain, such an acquisition would form a strategic addition to Hindustan Unilever’s recent buying spree in India.
Over the past year, Hindustan Unilever has been actively expanding its footprint in the health and wellbeing market by acquiring brands like Oziva and Wellbeing Nutrition. This potential acquisition aligns with their stated business strategy of exploring strategic growth opportunities. A spokesperson from Hindustan Unilever shared with TechCrunch:
“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business.”
{Hindustan Unilever Spokesperson}
If successful, this acquisition would not only expand Hindustan Unilever’s skincare portfolio but also enhance its market position in India, where it operates well-known brands such as Dove, Pond’s, Lakme, Sunsilk, Lux, and Lifebuoy. It’s worth noting that Hindustan Unilever’s Indian subsidiary boasts a market cap exceeding $65 billion.
- Minimalist is a four-year-old skincare brand based in Jaipur.
- The startup offers a diverse range of products from sunscreen to hair repair serum.
- Minimalist reported an impressive 89% revenue growth to $40.8 million for the fiscal year ending March 2024.
- The company has achieved profitability according to recent reports.
Interestingly, Hindustan Unilever is already an investor in Minimalist through its venture arm, Unilever Ventures, having participated in the Series A funding round in mid-2021. Earlier on, Peak XV was the first institutional investor backing Minimalist during its seed funding phase in late 2019.
While Minimalist and Peak XV Partners have yet to comment on this matter, it’s clear that the potential acquisition could mark a significant moment for both parties involved. As these talks continue to unfold privately, industry observers are keenly watching what could be another pivotal step in Hindustan Unilever’s strategic expansion within India’s dynamic consumer goods landscape.
