Hindustan Unilever acquires premium beauty brand Minimalist for US$342M
INDIA – Hindustan Unilever (HUL) has announced the acquisition of skincare startup Minimalist for approximately US$342 million, reinforcing its presence in India’s fast-growing premium beauty market.
HUL will initially acquire a 90.5% stake in Minimalist through a combination of secondary buyouts and primary investment, with the remaining 9.5% to be purchased from the founders within two years.
The deal, subject to regulatory approvals, is expected to close in the June quarter.
The acquisition enhances HUL’s premium beauty offerings, complementing established brands such as Dove, Pond’s, and Lakmé.
Minimalist, known for its science-backed, active-ingredient skincare products, has built a strong e-commerce presence and reported an annual revenue run rate exceeding ₹5 billion while remaining profitable since inception.
HUL plans to leverage its extensive retail network to expand Minimalist’s offline distribution, broadening its reach beyond digital platforms.
Founded in 2020 by Mohit Yadav and Rahul Yadav, Jaipur-based Minimalist offers a wide range of skincare products, including sunscreens and hair-repair serums.
The startup previously secured funding from Unilever Ventures during its Series A round in 2021, while Peak XV was its first institutional investor, backing the company in 2019 through the Surge platform.
This acquisition aligns with HUL’s broader strategy to strengthen its position in the health and beauty sector, following its purchases of Oziva and Wellbeing Nutrition last year.
“This acquisition is another key step in growing our Beauty & Wellbeing portfolio in the high-growth masstige beauty segment,” said Rohit Jawa, CEO of Hindustan Unilever.
Minimalist’s founders will continue to lead the brand for two years post-acquisition to ensure a seamless transition and sustained growth.
The deal values Minimalist above the US$300 million valuation it reportedly sought in last year’s venture capital fundraising, underscoring its strong market position.
HUL shares dip following Q3 results
Meanwhile, HUL’s stock declined 3.5% in early trading on Thursday, hitting an intraday low of ₹2,258.65 per share on the BSE.
The drop followed the company’s Q3FY25 earnings report released on January 22, 2025, after market hours.
HUL reported an 18.9% year-on-year increase in net profit, reaching ₹2,984 crore compared to ₹2,509 crore in the previous year’s Q3.
However, concerns over lower volume growth and margin expectations led most brokerages to revise their target prices downward.
ICICI Securities maintained an ‘Add’ rating but lowered its target price from ₹2,950 to ₹2,500 per share, reducing earnings estimates for FY25E and FY26E by 6% and 8%, respectively.
tance and more efficient protection of soil against erosion. It also has harvesting benefits for farmers and the environment.
The project aims to replicate and build on these traits in the new crop which would contribute to Unilever’s greenhouse gas (GHG) emission reduction ambitions in ingredient sourcing.
“As well as being more robust, the aim is for no parts of the crop to go to waste. In addition to oil, the plant will also continue to produce sugar, which we hope could be used in other biotechnology processes to generate speciality ingredients such as fragrances and enzymes,” explained the company.
Unilever further added that it will also explore if the leftover plant fibre can be used to produce paper and board for packaging.
“By continuing to invest in biotechnology, we aim to further unlock the power of nature and build a more sustainable and diverse supply chain for the future,” says Neil Parry, Head of Biotechnology at Unilever.
“This partnership enables us to identify alternative ingredients for our household, beauty and personal care brands which will further support our ambition to reach net zero emissions across our value chain by 2039.”
According to the company, raw materials and ingredients account for approximately 52% of its GHG emissions in scope of its net zero ambition and represent the largest emissions source.
The partnership is one way in which they are seeking to utilise biotechnology to advance sustainable sourcing of critical raw materials.
The first phase of the project will be used used to support the research and development of the plant biotechnology.
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