Explained: How Minimalist Stood Out to HUL

-Minimalist's branding and products are highly appealing to younger consumers (especially millennials and Gen Z), a group that is increasingly investing in skincare.

-The clean and simple skincare range resonated with HUL’s vision of catering to more conscious, informed consumers.

-For HUL, the acquisition aligns with its strategy to diversify its portfolio, tap into the rising demand for premium and skincare brands.

Hindustan Unilever Limited (HUL) acquired Minimalist, a popular skincare brand, to strengthen its presence in the rapidly growing direct-to-consumer (D2C) and premium skincare market. 

Minimalist’s focus on clean, effective, and affordable skincare products resonates with the increasing consumer demand for transparency, sustainability, and ingredient-conscious choices.

For HUL, the acquisition aligns with its strategy to diversify its portfolio, tap into the rising demand for premium and skincare brands, and capture a younger, more digitally savvy audience. Minimalist also has a strong online presence, which is an added advantage for HUL as it seeks to grow its e-commerce and D2C business.

Overall, the move helps HUL expand its footprint in the skincare segment while meeting evolving consumer expectations and trends.

In The News

Hindustan Unilever Limited (HUL) announced on Wednesday, January 22, that it has signed a definite agreement to acquire the online premium skincare brand Minimalist for INR 2,955 Cr, as per the company's statement.

Following the agreement, HUL to acquire a 90.5% stake in Minimalist. This strategic move will expand HUL’s Beauty & Wellbeing portfolio, allowing the company to tap into high-demand sectors.

As per the deal details, HUL will acquire the stake in Minimalist through a primary infusion and secondary buyout, at a pre-money enterprise value of INR 2,955 Cr.

“We are delighted to welcome Minimalist into the HUL family. This acquisition is another key step to grow our Beauty & Wellbeing portfolio in high-growth premium demand spaces. Mohit, Rahul and the team have created a great brand built on science, product efficacy and transparency,” said Rohit Jawa, CEO & MD of HUL, in the official statement. 

Founded in 2020 by Mohit Yadav and Rahul Yadav, Minimalist is one of the fastest-growing digital-first brands, blending beauty with science-driven, active ingredient-focused skincare.

Minimalist was born out of the founders’ desire to provide simpler, transparent, and more effective skincare, built on science rather than marketing hype.

Funding History

Minimalist raised significant funding as it grew rapidly in the skincare industry. Here's an overview of its funding history:

Seed Funding (2020): In its early stages, Minimalist secured initial seed funding to help kickstart its operations. This was essential for product development and launching its direct-to-consumer model.

Series A Funding (2021): Minimalist raised around $2 million (INR 15 Cr) in a Series A round, led by prominent investors like Kalaari Capital. This funding was aimed at expanding the brand’s product line and scaling up marketing efforts.

Series B Funding (2022): In 2022, the brand raised another round of funding, which was reported to be around $7 million (INR 52 Cr), to further fuel its growth, improve its digital marketing, and expand its presence across India.

Explainer: How Minimalist Stood Out to HUL

Strong Digital Presence: Minimalist built a robust direct-to-consumer (D2C) model, excelling in online channels. HUL, with its experience in traditional retail, saw this as an opportunity to enhance its e-commerce capabilities and connect with younger, tech-savvy consumers.

Transparent and Ingredient-Focused: Minimalist’s emphasis on transparency, with its clear communication of ingredients and their benefits, aligns with the growing consumer demand for clean, simple skincare. This resonated with HUL’s vision of catering to more conscious, informed consumers.

Appeal to Younger Demographics: Minimalist's branding and products are highly appealing to younger consumers (especially millennials and Gen Z), a group that is increasingly investing in skincare. HUL recognized the brand's ability to capture this demographic and saw it as a gateway to growing its portfolio in the premium, younger-focused segment.

Rapid Growth in the Skincare Market: The skincare market, particularly in India, has seen significant growth in recent years. Minimalist capitalized on this trend with its affordable yet premium positioning. HUL, a leader in personal care, saw this as a lucrative opportunity to bolster its presence in a fast-growing category.

Sustainability and Clean Beauty: Minimalist’s commitment to sustainability and cruelty-free, vegan products matched the rising consumer preference for ethical, eco-conscious brands. This aligned with HUL's own sustainability goals, making it a strategic fit to further enhance its portfolio with products that appeal to environmentally conscious consumers.