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Monday, February 10, 2025

Hindustan Unilever Acquires 90.5% Stake in Jaipur-Based Skincare Brand Minimalist

In a significant development for India’s beauty and personal care sector, Hindustan Unilever Ltd. has finalized an agreement to acquire a 90.5% stake in Minimalist, a Jaipur-based skincare and haircare brand. The deal places Minimalist at a pre-money enterprise valuation of ₹2,955 crore, with Hindustan Unilever committing ₹2,670 crore in cash and an additional primary infusion of ₹45 crore.

The FMCG giant is also set to purchase the remaining 9.5% stake within approximately two years, making this one of the most notable direct-to-consumer acquisitions in the industry. The completion of the transaction is contingent upon approvals from the Competition Commission of India and other relevant regulatory authorities.

The pre-money enterprise valuation of ₹2,955 crore is subject to adjustments as outlined in the Share Purchase and Subscription Agreement (SPSA). Hindustan Unilever (HUL) stated that the deal is anticipated to conclude by the end of the June quarter in 2025, marking the first quarter of FY 2026. However, the timeline may be extended if necessary, as per the terms of the agreement.

Minimalist’s Journey and Offerings
Minimalist, operated by Uprising Science Private Limited, was founded in May 2018 and launched its brand in 2020 under the leadership of brothers Mohit and Rahul Yadav. Built on the philosophy of transparency in skincare and haircare, the brand has embraced the tagline #HideNothing.

Specializing in products such as serums, toners, and moisturizers, Minimalist has focused on actives-led, science-backed formulations that deliver proven results. The brand’s offerings are available on its official website and prominent e-commerce platforms like Amazon, Nykaa, and Flipkart.

As part of its acquisition by Hindustan Unilever (HUL), the Yadav brothers will continue steering the business for the next two years, ensuring consistency in operations and product innovation.

Impressive Financial Growth
Despite being a relatively young company, Minimalist has demonstrated rapid growth and profitability since its inception. The brand’s revenue rose significantly, from ₹103 crore in FY 2021-22 to ₹184 crore in FY 2022-23, and further surged to ₹347 crore in FY 2023-24. According to unaudited results for the December 2024 quarter, the company’s Annual Revenue Run Rate (ARR) has exceeded ₹500 crore.

Profitability has also scaled impressively, with profits more than doubling from ₹5 crore in FY 2021-22 to ₹11 crore in FY 2023-24. Minimalist’s disciplined financial management and strong revenue growth have propelled its valuation from around ₹630 crore three years ago to nearly ₹3,000 crore today.

Backing by Prominent Investors
Before the HUL deal, Minimalist’s key stakeholders included founders Mohit and Rahul Yadav, who collectively held a 61% stake. Other major investors included Peak XV Partners Venture Investments VII (27.4%), Surge Ventures II, and Twenty Nine Capital Partners, along with a small portion held through employee stock ownership plans (ESOPs).

HUL’s acquisition will involve buying out these investors, including Peak XV Partners, which stands to realize a significant return on its ₹79 crore investment, estimated at ₹895 crore. Founders Mohit and Rahul Yadav are also expected to see substantial gains, with their collective payout projected at ₹1,800 crore.

Three years ago, Minimalist raised ₹110 crore in funding from investors, including Unilever Ventures. This initial backing played a crucial role in accelerating the company’s growth. With HUL now onboard, Minimalist will gain access to an expansive distribution network and greater resources, while staying committed to its core principles of transparency and science-backed efficacy.

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