HUL to Acquire Stake in Minimalist for ₹2,670 Crore; Peak XV Secures 10X Returns

Hindustan Unilever Limited (HUL) has announced its acquisition of a 90.5% stake in Minimalist, the fast-growing D2C skincare brand, for ₹2,670 crore. This deal is one of the largest acquisitions in India’s startup ecosystem, valuing Minimalist at ₹2,955 crore.

Expansion Opportunities for Minimalist

Minimalist, founded in 2020 by Mohit Yadav and Rahul Yadav, has rapidly become a trusted name in skincare, known for its science-backed formulations and transparency. With HUL's robust offline distribution network, the founders aim to make Minimalist's products more accessible across India while also expanding into international markets.

Speaking about the acquisition, the founders shared, “This partnership paves the way for our dream of taking Minimalist to the world. HUL’s expertise will enable us to scale globally.”

Peak XV Partners Reaps Massive Returns

Peak XV Partners, one of the early investors in Minimalist, is set to earn significant profits from the deal. The venture capital firm invested ₹80 crore in 2019 to acquire a 27.5% stake in Minimalist and is now poised to earn around ₹800 crore, representing a 10x return on investment.

Other early investors, including Surge and Twenty Nine Capital Partners, are also set to exit Minimalist as part of the acquisition deal.

Deal Structure and Valuation

HUL is purchasing a 90.5% stake in Minimalist for ₹2,670 crore, with an additional ₹45 crore being invested directly into the company. The remaining 9.5% of the stake will be acquired by HUL over the next two years.

After the acquisition is finalized in the first quarter of FY26, multiple exits will occur:

• Founders’ Exit: Rahul Yadav and Mohit Kumar Yadav will sell their combined 57.35% stake for approximately ₹1,500 crore.

• Investor Exits: Peak XV, Surge, and Twenty Nine Capital Partners will divest their holdings in the company.

The founders will continue to oversee the company’s operations for the next two years as part of the transition plan.

Minimalist’s Growth and Milestones

Since its inception in 2020, Minimalist has shown remarkable growth. Known for its direct-to-consumer (D2C) model, the brand sells its products through its own online platform and major e-commerce platforms like Amazon, Nykaa, Flipkart, and Myntra.

The company has achieved an impressive Annual Revenue Run Rate (ARR) of ₹500 crore in just four years while maintaining profitability. "Minimalist has been built on robust fundamentals and has delivered profitable growth since inception," said HUL in its announcement.

Statements from HUL Leadership

Rohit Jawa, CEO and Managing Director of HUL, expressed his enthusiasm for the acquisition, stating, “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.”

What This Acquisition Means for HUL and Minimalist

With this acquisition, HUL strengthens its position in the high-growth premium skincare segment, aligning with its strategic focus on the Beauty & Wellbeing portfolio. Minimalist will benefit from HUL’s extensive distribution network and global reach, enabling it to expand its footprint and cater to a wider audience.

The acquisition is expected to reshape India’s D2C skincare market, with Minimalist poised to become a global skincare leader under HUL’s guidance.