Minimalist, a Jaipur-based skincare brand, is reportedly in advanced talks with Hindustan Unilever Limited (HUL) for a potential acquisition worth ₹3,000 crore ($350 million). If the deal materializes, the startup’s valuation would skyrocket by 366.7%, rising from ₹630 crore (approximately $75 million) in 2021. Quite a surprising leap, isn’t it?

Minimalist’s growth trajectory has been impressive. In FY24, the company saw its revenue surge by 89% year-on-year to ₹350 crore, while profits soared by 120% to ₹11 crore. Despite this remarkable performance, the founders seem to view acquisition as the best path for further growth. But why?

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One key reason could be the drive for rapid expansion, a goal shared by many Indian startups in the D2C (direct-to-consumer) sector.

Minimalist has raised $16.8 million across two funding rounds so far. However, in 2023, the company struggled to secure fresh capital after seeking a valuation jump from $76 million in 2021 to $300 million by 2024. Interestingly, this is the same valuation HUL is now offering. Despite Minimalist’s consistent profitability, investors were wary of the high valuation due to the cautious funding environment in the D2C space.

It remains unclear whether Minimalist will retain its brand identity post-acquisition. Nevertheless, the benefits of this deal are evident.

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By partnering with HUL, Minimalist could leverage the FMCG giant’s extensive distribution network, marketing prowess, R&D expertise, supply chain infrastructure, and global reach. These resources would allow the brand to scale faster and tap into a broader customer base.

This acquisition would also position Minimalist as a serious challenger to other popular skincare brands in the market, including Pilgrim, Mamaearth, and WOW Skin Science.

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