While the talks are on to pick up at least a majority stake, it may ultimately result in a 100% acquisition, people briefed on the discussions said.
Jaipur-based Minimalist counts Peak XV Partners as one of its investors, which holds a 6% stake in the firm. The founders, Rahul Yadav and Mohit Yadav, hold nearly 84% of the company. Minimalist was last valued at around $75-80 million when it raised private capital.
If the deal is finalised, it would mark another instance of a fast-growing online D2C brand being acquired by a large enterprise, underscoring the consolidation trend which is underway in the consumer goods industry faced with growth challenges.
While the deal contours are still being finalised, Minimalist was previously in talks with financial investors, including Premji Invest, seeking new funding at a valuation of Rs 2,000–3,000 crore, sources said. That deal did not materialise due to a valuation mismatch.
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Minimalist recorded nearly an 86% jump in revenue to Rs 350 crore in FY24 while doubling its profit to Rs 10.8 crore. In FY22, however, it had reported a higher profit of Rs 16 crore on a revenue of Rs 112 crore, according to data from Tracxn.“The discussions are underway and progressing as planned,” said one of the sources briefed on the matter.
“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business. We will make appropriate disclosures whenever there is any material development that requires disclosure under applicable laws, a spokesperson for HUL told ET. Peak XV Partners and Minimalist’s Yadav did not respond to ET’s email query.
Founded in 2018, Minimalist offers a range of skincare, body care, and hair care products. Its products are available on online marketplaces as well as offline retail stores. Sugar Cosmetics, Plum, and Foxtale are among the new-age brands in this space, alongside giants like Unilever, Shiseido, and Estée Lauder.
Many of these new-age brands disclose the active ingredients in their products at a granular level, including the exact percentage of acids used.
HUL’s recent bets
HUL, India’s biggest consumer products company, has primarily built its fortune by selling mass-priced brands such as Sunsilk, Clinic Plus, Lux, and Lakmé. While it controls more than half of the skin and hair care market, its portfolio is largely dominated by mass brands, though it has recently introduced “masstige” brands like Liquid IV, Dermalogica, and Novology. The company also owns nearly half a dozen digital-first brands, including Simple, Love Beauty & Planet, Baby Dove, Acne Beauty, and Find Your Happy Place.
More than two years ago, HUL invested in Zywie Ventures, which sells the plant-based supplement brand Oziva, and Nutritionalab, which owns nutritional products under the Wellbeing brand, to enter the health and wellness market.
This latest deal could also reflect HUL’s focus on high-margin and low-penetration categories, a strategy adopted by parent company Unilever.
In April last year, HUL reorganised its beauty and personal care (BPC) division to sharpen its focus. The new Beauty and Wellbeing division now accounts for nearly a fifth of HUL’s sales but contributes about a third of its profit. Unilever Global CEO Hein Schumacher noted last year that India is just over the tipping point where the middle class is ready to spend more, and the premiumisation of the market is accelerating.
In 2024, L’Oréal SA and Shiseido, two of the world’s largest cosmetics companies, identified India as one of their key growth drivers, citing the country’s burgeoning population and growing affinity for beauty products. L’Oréal revealed that India is now its fifth-largest market in the professional products division, which primarily sells to salons. Shoppers Stop partnered with Japanese firm Shiseido to bring its premium beauty brand Nars Cosmetics to India.
Currently, beauty brands like L’Oréal, Mamaearth, Nivea, and Nykaa hold a 33% market share and are expected to expand to 42% in the next five years. In contrast, established firms like HUL and Procter & Gamble, which now account for two-thirds of the market, are projected to see their share drop by 900 basis points to 58% by 2027, according to a joint report by Redseer Strategy Consultants and Peak XV Partners.
