Hindustan Unilever Ltd (HUL), one of India’s leading FMCG giants, has entered into a significant agreement to acquire a majority stake in the direct-to-consumer (D2C) skincare brand Minimalist. The transaction is valued at INR 2,670 crore, marking a strategic move to bolster HUL’s presence in the burgeoning D2C and skincare segments.
According to an exchange filing, HUL’s board has executed a share purchase and subscription agreement to acquire a 90.5% stake in Uprising Science Private Limited, the parent company of Minimalist. The deal involves a secondary buyout worth INR 2,670 crore at a pre-money enterprise valuation of INR 2,955 crore. In addition to the secondary buyout, HUL will inject INR 45 crore in primary funding into the brand to support its growth and future expansion.
HUL has also committed to acquiring the remaining 9.5% stake in Uprising Science Private Limited within two years following the completion of this initial transaction. This phased acquisition approach will allow HUL to further consolidate its ownership of Minimalist, ensuring seamless integration into its portfolio over time.
The deal includes the purchase of shares from the founders of Minimalist, Mohit Yadav and Rahul Yadav, as well as key investors such as Peak XV Partners (formerly Sequoia Capital India), its seed investment platform Surge, and Twenty Nine Capital Partners. These stakeholders have played a pivotal role in Minimalist’s growth and positioning as one of India’s top D2C skincare brands.
Minimalist has carved out a niche in the skincare industry by offering science-backed, transparent, and effective products that resonate with the millennial and Gen Z consumer base. Known for its ingredient-first approach, the brand has garnered a loyal following in India’s competitive beauty and skincare market. This acquisition aligns with HUL’s strategy to tap into high-growth segments within the beauty and personal care space, leveraging Minimalist’s strong brand equity and innovative product portfolio.
HUL’s move to acquire Minimalist reflects the growing prominence of D2C brands in the Indian FMCG sector. As consumers increasingly gravitate toward personalized, digital-first shopping experiences, established players like HUL are strategically investing in brands that excel in this domain. The acquisition will also enable HUL to expand its reach in the premium skincare market, which has been witnessing robust growth driven by rising disposable incomes and greater consumer awareness of skincare routines.
The primary infusion of INR 45 crore into Minimalist is expected to accelerate its expansion plans, enhance product innovation, and strengthen its supply chain capabilities. With HUL’s extensive resources, distribution network, and market expertise, Minimalist is well-positioned to scale its operations and capture a larger share of the skincare market, both in India and potentially in global markets.
This acquisition follows a broader trend of established FMCG players acquiring or investing in D2C brands to stay competitive in a rapidly evolving market landscape. For HUL, the Minimalist deal signifies a strategic shift toward embracing digital-first consumer trends while reinforcing its commitment to offering high-quality, innovative products that cater to modern consumer demands.
The completion of this transaction marks a pivotal moment for Minimalist, as it transitions from a startup to a key player within HUL’s portfolio. With HUL’s backing, the brand is expected to scale new heights, leveraging its existing popularity and expanding its reach to more consumers across diverse markets.