Hindustan Unilever has acquired a 90% stake in Minimalist for Rs 2,955 cr
Hindustan Unilever: FMCG giant Hindustan Unilever Limited announced on January 22 that it has acquired a 90.5 percent stake in the skincare startup for Rs 2,955 crore. This acquisition was first reported by Moneycontrol on January 3.
According to the company, HUL will acquire a 90.5 percent stake in the business through secondary buyouts and primary capital infusion at a pre-money enterprise value of Rs 2,955 crore. The deal is subject to adjustments as per the transaction document.
The company will purchase 90.5% of the company from existing investors, including Peak XV Partners, through secondary transactions. The remaining 9.5 percent will be acquired from the founders over the next two years as per the terms set out in the transaction documents.
The skincare startup, Minimalist, was founded by brothers Rahul Yadav and Mohit Yadav, who are serial entrepreneurs and will continue to run the company.
Minimalist has seen a significant increase in its valuation from around Rs 630 crore to Rs 3,000 crore in just three years, driven by growing revenues and a stable profit profile. This deal is one of the largest in the direct-to-consumer (D2C) space, particularly in the skincare industry.
In FY24, Minimalist generated a revenue of Rs 350 crore, an 89 percent increase from the previous year. During the same period, its profit more than doubled from Rs 5 crore to Rs 11 crore. Data shows that Minimalist has been profitable for at least four years.
Based on its FY24 financial performance, Minimalist has achieved a revenue multiple of approximately 10X, which is significantly higher than the 4-6X typically seen in similar deals involving direct-to-consumer (D2C) startups. This impressive valuation can be attributed to Minimalist’s strong financial discipline and strategic management.
Approximately three years ago, Minimalist secured a funding of Rs 110 crore ($15 million) from Unilever Ventures, the venture capital arm of Unilever. Unilever, a British multinational company that also operates HUL in India, recognized the potential of Minimalist and invested in the company to support its growth and expansion efforts.
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