Hindustan Unilever Limited (HUL) is reportedly in advanced discussions to acquire the Jaipur-based skincare brand Minimalist for approximately Rs 3,000 crore ($350 million). This potential acquisition marks one of the largest transactions in the direct-to-consumer (D2C) skincare space in recent years.

Founded in 2020 by brothers Rahul and Mohit Yadav, Minimalist has quickly gained popularity with its range of science-backed, ingredient-focused skincare products. The brand has demonstrated remarkable growth, with its revenue surging to Rs 350 crore in FY24, an 86% jump from the previous year. Minimalist has also remained consistently profitable since FY21, a rare feat among start-ups.

HUL’s interest in Minimalist aligns with its strategy to expand its portfolio into high-margin categories like skincare. The acquisition would provide Minimalist access to HUL’s extensive offline distribution networks, enabling it to expand its presence in tier-2 and tier-3 cities, as well as international markets. For HUL, acquiring Minimalist would mean adding a brand focused on active ingredients to its existing portfolio, which includes popular consumer brands like Dove, Pond’s, and Lakmé.

The deal, if finalized, is expected to be completed within the current financial year, with HUL aiming for full ownership over a period of two to three years. This acquisition underscores the trend of consolidation among new-age brands being acquired by legacy FMCG companies.