Hindustan Unilever announced its agreement to acquire beauty startup Minimalist for approximately $342 million, marking a significant expansion in its premium beauty segment. The deal, set to close in the June quarter pending regulatory approval, values Minimalist higher than its previously reported $300 million valuation target. This acquisition enhances Hindustan Unilever’s presence in the burgeoning masstige beauty market, complementing its existing brands such as Dove, Pond’s, and Lakmé.
Minimalist, founded in 2020 by Mohit Yadav and Rahul Yadav in Jaipur, has established a robust e-commerce presence with products ranging from sunscreen to hair-repair serum. The company has maintained profitability since its inception and boasts an annual revenue run rate exceeding 5 billion rupees. Hindustan Unilever plans to leverage its vast retail network to expand Minimalist’s offline distribution, further solidifying its market position.
The transaction will see Hindustan Unilever initially acquiring a 90.5% stake in the four-year-old direct-to-consumer brand through secondary buyouts and primary investment. The remaining 9.5% stake will be acquired from the founders over the next two years. Mohit Yadav and Rahul Yadav will continue to lead the business for two years post-acquisition, ensuring continuity in operations and strategic direction.
Venture and Growth Prospects
Minimalist has been part of Peak XV’s Surge platform since late 2019, when it received seed funding as one of the earliest Surge portfolio startups. Unilever Ventures had also invested in Minimalist during its Series A round in 2021, demonstrating its longstanding interest in the brand’s potential.
“This acquisition is another key step to grow our Beauty & Wellbeing portfolio in the high growth masstige beauty segment,” stated Rohit Jawa, CEO of Hindustan Unilever.
This move follows Hindustan Unilever’s recent expansions into health and well-being through the acquisitions of Oziva and Wellbeing Nutrition last year. By integrating Minimalist into its portfolio, Hindustan Unilever strengthens its foothold in a competitive market, offering consumers a wider range of premium beauty products.
What The Author Thinks
The acquisition of Minimalist by Hindustan Unilever is a strategic move that underscores the company’s commitment to expanding its premium beauty segment. By leveraging Minimalist’s established e-commerce presence and innovative product line, Hindustan Unilever not only diversifies its offerings but also strengthens its competitive edge in the rapidly growing masstige beauty market. This deal, built on prudent financial and strategic planning, promises to enhance shareholder value and consumer choice, reflecting well on Hindustan Unilever’s market acumen and foresight.
Featured image credit: Ingmar Zahorsky via Flickr
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