In a historic move in India’s direct-to-consumer (D2C) market, Hindustan Unilever Limited (HUL) paid ₹2,955 crore in pure cash to purchase a 90.5% share in the successful skincare business Minimalist. The acquisition, which was revealed on January 22, 2025, together with HUL’s quarterly results, is among the biggest D2C transactions in India. The remaining 9.5% stake will be bought within two years, and the deal, subject to modifications, is anticipated to completion by the end of the June quarter in FY26.
Credits: NDTV Profit
The Strategic Buyout: HUL’s Path to Skincare Dominance
HUL will acquire its stake in Minimalist through a combination of secondary buyouts and primary capital infusion. The deal values the skincare brand at a pre-money enterprise value of ₹2,955 crore, reflecting the company’s robust financial performance and market presence.
This acquisition will help HUL strengthen its foothold in the burgeoning skincare market, which has witnessed rapid growth fueled by rising consumer awareness and demand for ingredient-focused products like those offered by Minimalist.
Minimalist’s Rapid Rise: From Startup to Skincare Star
Minimalist, which was founded in 2019 by brothers Rahul and Mohit Yadav, has rapidly established themselves in the Indian skincare market. The brand has been quite popular with customers because of its openness, ingredient-first philosophy, and reasonable prices.
From ₹184 crore in FY23 to ₹350 crore in FY24, Minimalist’s income increased by an astounding 89%. Over the same time period, the company’s profits increased from ₹5 crore to ₹11 crore, more than double. These numbers highlight Minimalist’s exceptional financial discipline and profitability, which are uncommon characteristics of D2C firms.
Founder and Investor Windfall: Impressive Returns
Minimalist’s success has paid off handsomely for its founders and investors. Founders Rahul and Mohit Yadav, who held a 61% stake, will collectively earn ₹1,800 crore from the transaction. Meanwhile, Peak XV Partners, the next largest shareholder with a 27.4% stake, will achieve a 10X return on its ₹79 crore investment, earning ₹895 crore.
Even early-stage investors like Twenty Nine Capital and employees holding ESOPs will see significant gains from the deal.
Unilever’s Continued Support: A Long-Term Collaboration
Interestingly, Unilever Ventures, the venture investing arm of HUL’s British parent company, had invested ₹110 crore in Minimalist three years ago to support its growth. This acquisition aligns seamlessly with Unilever’s strategy to back promising startups and integrate them into its global portfolio.
The Yadav brothers will continue to lead Minimalist’s operations post-acquisition, ensuring the brand retains its distinct identity and market momentum.
Valuation Premium: Why Minimalist Stood Out
Minimalist’s valuation has skyrocketed from ₹630 crore in 2021 to ₹2,955 crore in 2025, driven by its innovative product range, financial discipline, and consumer trust. The startup commanded a 10X revenue multiple, significantly higher than the 4-6X typical for D2C startups in similar deals.
HUL’s decision to pay a premium reflects Minimalist’s potential for long-term growth and profitability. The brand’s consistent focus on delivering value to its customers has made it a standout in a crowded marketplace.
Implications for the D2C and FMCG Industries
This acquisition signals a major shift in how established FMCG players are engaging with digital-first brands. With its robust financials and loyal customer base, Minimalist sets a new benchmark for D2C startups aspiring to attract investments from global conglomerates.
For HUL, the deal is an opportunity to capture a larger share of the fast-growing skincare market, driven by millennial and Gen Z consumers. It also reflects the company’s commitment to evolving with changing consumer preferences and leveraging innovative brands to stay ahead.
Credits: Money Control
Looking Ahead: A Skincare Revolution in the Making
As the agreement draws to a close, the addition of Minimalist to HUL’s line of products is expected to spur additional innovation in the Indian beauty sector. The brand is ready to achieve new heights, broaden its customer base, and launch ground-breaking products thanks to HUL’s resources and experience.
More than merely a commercial deal, the Minimalist acquisition shows how Indian entrepreneurs can become well-known throughout the world. It’s a turning point for the D2C sector, demonstrating the enormous benefits of combining corporate might with entrepreneurial agility.
