A week after announcing the acquisition of direct-to-consumer (D2C) startup Minimalist for a cash consideration of INR 2,670 Cr, FMCG giant Hindustan Unilever Ltd (HUL) has officially sought the Competition Commission of India’s (CCI) approval for the deal.
In its filing with the CCI, HUL stated, “The acquirer (HUL) proposes to acquire 90.5% shareholding of the target (Minimalist), with eventual acquisition of the remaining 9.5% shareholding of the target in about two years from the completion date as per the terms set out in the share purchase & subscription agreement executed by and between the parties.”
Deal Structure & Strategic Implications
As part of the acquisition, HUL will also make a primary infusion of INR 45 Cr into Minimalist.
The FMCG giant will acquire the remaining 9.5% stake after approximately two years from the deal’s completion.
HUL is set to acquire shares from Minimalist’s founders, Mohit Yadav and Rahul Yadav, as well as from key investors such as Peak XV Partners, its seed investment platform Surge, and Twenty Nine Capital Partners.
The move aligns with HUL’s strategy to expand its beauty and wellbeing portfolio, leveraging Minimalist’s strong foothold in the skincare segment.
Notably, Minimalist’s founders Mohit Yadav and Rahul Yadav will continue to lead business operations for two years post-acquisition, ensuring a smooth transition and continued brand growth.
Financial Growth & Investor Returns
Minimalist, founded in 2020, has emerged as a formidable player in the D2C skincare space.
The brand has an annual revenue run rate of over INR 500 Cr, according to HUL. Minimalist develops and sells clinically tested skincare, haircare, and body care products, emphasizing ‘active’ ingredients.
To date, it has raised around $15 Mn in funding.
One of the biggest beneficiaries of this acquisition is Peak XV Partners, which is set to realize a 10X return on its investment in Minimalist.
This marks a significant exit for the venture capital firm, highlighting the lucrative potential of India’s D2C beauty market.
