Mumbai8 minutes ago
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FMCG major Hindustan Unilever Limited (HUL) may soon buy Jaipur based skin care startup Minimalist. According to media reports, this deal will be for Rs 3,000 crore. Peak XV Partners is the promoter of Minimalist.
After this deal, the valuation of Minimalist will increase from Rs 630 crore ($75 million) to Rs 3,000 crore ($350 million) in about three years. Its valuation will increase due to revenue and stable profit profile.
The revenue of Minimalist was Rs 350 crore in the financial year 2024.
This will be one of the biggest deals in the last few years in the direct-to-consumer (D2C) space, especially in the skin care industry. The revenue of Minimalist in the financial year 2024 was Rs 350 crore. It was Rs 184 crore in FY 2023. That means the company’s revenue has increased by 89% in 2024 compared to 2023.
The profit of Minimalist was Rs 11 crore in 2024.
In 2024, the profit of Minimalist also doubled from Rs 5 crore to Rs 11 crore. The data shows that Minimalist has been profitable for at least four years. However, Minimalist founders Mohit Yadav and Rahul Yadav have not given any response regarding this deal.
A company spokesperson said, ‘In line with our business strategy, we continuously evaluate several strategic opportunities for the growth and expansion of our business. Whenever there are significant developments, we will make disclosures in accordance with applicable law.
FMCG giants are adding new age companies to their fold
This deal is going to happen at a time when FMCG giants are adding new age companies to their fold. This helps larger groups take advantage of the young customer base. At the same time, startups are helped to grow faster by taking advantage of the network created by FMCG companies.
Not only HUL but other FMCG companies like Marico, ITC, Dabur are also onboarding new age brands like Beardo, Plix, Yogabar and many others and growing their digital business.
