Hindustan Unilever in talks to acquire Peak XV-backed Minimalist for up to $350M

Consumer goods giant Hindustan Unilever is in advanced talks to acquire four-year-old direct-to-consumer startup Minimalist for up to $350 million, according to two people familiar with the matter.

An acquisition would add to the Unilever subsidiary’s buying spree in India, where it expanded into the health and wellbeing category by acquiring Oziva and Wellbeing Nutrition a year ago.

“In line with our business strategy, on an ongoing basis, we evaluate various strategic opportunities for the growth and expansion of our business,” a Hindustan Unilever spokesperson told TechCrunch in a statement.

An acquisition will also broaden the skincare portfolio of Unilever’s Indian subsidiary, with a market cap of over $65 billion. HUL operates brands including Dove, Pond’s, Lakme, Sunsilk, Lux and Lifebuoy.

The talks are ongoing, but a deal is yet to be finalized, the people cautioned, requesting anonymity as the deliberations are private.

In the second half of last year, Minimalist attempted to field interest from venture capital firms to secure capital at about $300 million valuation, according to newspaper Mint.

Jaipur-based Minimalist operates a skincare brand, selling a wide-range of products, including sunscreen to hair repair serum. It saw its revenue surge 89% to $40.8 million in the fiscal year ended March 2024. The startup also said it was profitable.

Hindustan Unilever is an investor in Minimalist, having participated in the startup’s Series A round in mid-2021 through its venture arm, Unilever Ventures. Peak XV was the first institutional investor in Minimalist, leading the startup’s seed funding in late 2019.

Minimalist and Peak XV Partners did not respond to requests for comment.