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From Startup to ₹3,000 Crore acquisition!
How Minimalist went from a Jaipur-based startup to a ₹3,000 crore acquisition—rewriting the rules of India’s beauty industry.
Abhishek Yadav
March 01, 2025 • Estimated Reading Time: 12 minutes
In partnership with
Remember when skincare used to be all about fancy packaging and celebrity endorsements? Well, Minimalist came in and flipped the script.
Started in 2020 by brothers Mohit and Rahul Yadav, Minimalist built a skincare brand that focused on what actually matters—science-backed formulations, transparency, and real results. And guess what? It worked. In just four years, they scaled to an Annual Revenue Run Rate (ARR) of ₹500 crore and caught the attention of industry giant Hindustan Unilever Limited (HUL), which acquired them for a whopping ₹2,955 crore ($342 million) in January 2025.
That’s not just a big deal—it’s one of the largest acquisitions in India’s direct-to-consumer (D2C) space. Minimalist proved that when you strip away the fluff and focus on quality, the results speak for themselves.
This case study dives deep into how Minimalist built a category-defining brand and what made HUL bet big on them. So let’s dive in?
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Table of Contents
Market Context
India’s beauty and personal care market isn’t just growing—it’s booming. Projected to hit more than $30 billion or so by 2030, this space has long been dominated by giants like HUL, Parle, and Unilever, who built their empires on mass marketing and one-size-fits-all products. But the game started changing when D2C brands like Minimalist, Mamaearth, and Sugar entered the scene, catering to a new wave of consumers who demanded more—transparency, efficacy, and personalization.
Minimalist launched at the perfect time. Indian consumers were becoming increasingly ingredient-conscious, questioning what actually went into their skincare. The brand tapped into this shift, championing science-backed, active ingredients while educating users on what works and why. This strategy not only won trust but also positioned Minimalist as a leader in premium skincare, filling a critical gap that traditional players had overlooked.
Business Model of Minimalist
Minimalist isn’t just another skincare brand—it’s a direct-to-consumer (D2C) powerhouse. Unlike traditional players that rely on retail distribution, Minimalist sells primarily through its website and e-commerce platforms, giving it complete control over branding, pricing, and customer experience.
At its core, the brand’s success rests on three key pillars:
Radical Transparency – While most brands throw around buzzwords like “organic” and “natural”, Minimalist spells out every ingredient on its packaging and educates consumers on what each one does. No fluff, no marketing gimmicks.
Science-Backed Formulations – Minimalist prioritizes clinically proven, high-quality ingredients, even if that means higher production costs. The focus? Products that actually work.
Lean, High-Impact Product Range – The brand started with just one face serum and gradually scaled to 66 SKUs, ensuring that every product met high standards before hitting the shelves. It’s all about quality over quantity.
This streamlined approach not only built trust but also made Minimalist stand out in a cluttered market.
Growth Strategy
Minimalist’s growth strategy is proof that you don’t need to burn millions on ads to build a powerhouse brand. Instead of following the “spend big, scale fast” playbook, Minimalist took a smarter, more efficient approach.
Here’s how they did it:
Category Creation – While most brands stuck to generic skincare, Minimalist pioneered the “active ingredient” movement in India. By making science-backed formulations mainstream, they didn’t just enter the market—they created a whole new category.
Customer-Centric Approach – Forget paid influencers. Minimalist relied on real customer reviews and testimonials, letting genuine word-of-mouth drive trust and credibility. The result? An organic brand love that money simply can’t buy.
Efficient Marketing – While industry giants spend 40-50% of revenue on marketing, Minimalist kept it lean at just 25%. And it worked—60% of customers came back for repeat purchases (vs. the industry average of 16-22%), and the brand maintained a 4x Return on Ad Spend (ROAS), making it one of the most profitable D2C brands in India.
Vertical Integration – Instead of relying on third-party manufacturers, Minimalist built and owned its production facilities. This wasn’t cheap, but it gave them full control over quality, faster R&D, and better margins—a long-term advantage that most brands don’t have.
By keeping things focused, efficient, and customer-first, Minimalist cracked the code to sustainable D2C growth.
The Roadblocks on Minimalist’s Journey
Despite its meteoric rise, Minimalist had to navigate several challenges along the way. Some of these are:
Profit Margins – While Minimalist’s gross margins stood at 65%, they lagged behind competitors like Mamaearth (70%) and Sugar (72%). The reason? Higher production costs due to premium ingredients and a commitment to quality over cost-cutting.
Rising Competition – In 2022, The Ordinary, a global skincare giant backed by Estée Lauder, entered the Indian market. With a strong Nykaa partnership and global brand recognition, it posed a serious threat to Minimalist’s market dominance.
Scalability Challenges – Minimalist’s online-first model fueled its early growth, but expansion beyond e-commerce required offline retail presence. This shift came with higher operational costs and the challenge of educating customers in physical stores—something the brand hadn’t faced before.
Minimalist had to tackle these roadblocks head-on to sustain its momentum in India’s fast-changing beauty market.
HUL’s Big Bet on Minimalist
In January 2025, Hindustan Unilever Limited (HUL) made a game-changing move by acquiring a 90.5% stake in Minimalist for ₹2,955 crore ($342 million), making it one of the biggest deals in India’s D2C space. The remaining 9.5% stake is set to be acquired over the next two years.
Why HUL Made the Move
A Premium Skincare Push – HUL has dominated India’s mass-market beauty segment for decades, but Minimalist gave it a stronghold in the booming premium skincare space.
Digital-First Advantage – Unlike legacy brands, Minimalist built its empire online-first, and HUL saw value in leveraging this digital playbook.
Bridging the “Masstige” Gap – The deal filled key gaps in HUL’s pricing strategy, giving it access to a growing customer base that seeks affordable luxury.
The Road Ahead with HUL
HUL plans to combine its massive distribution network with Minimalist’s science-backed products, accelerating growth in both urban and rural markets. The acquisition is awaiting regulatory clearance from the Competition Commission of India (CCI), expected by Q1 FY 2026.
With legal heavyweights like Cyril Amarchand Mangaldas, IndusLaw, Trilegal, and Khaitan & Co. advising on the deal, HUL’s bet on Minimalist signals a major shift in how traditional FMCG giants are adapting to India’s D2C revolution.
What Fueled Minimalist’s Rise?
Minimalist’s rapid success wasn’t accidental—it was built on four key pillars:
Product Quality – Science-backed formulations and premium ingredients helped Minimalist stand out in a crowded skincare market.
Radical Transparency – By openly educating consumers about ingredients, the brand built trust and challenged industry norms.
Lean & Focused Strategy – A tight product range and efficient marketing meant Minimalist could scale rapidly without burning cash.
Perfect Timing – The brand launched just as Indian consumers were becoming more ingredient-conscious, riding the wave of demand for transparency and efficacy.
These factors not only fueled Minimalist’s growth but also positioned it as one of India’s most successful D2C beauty brands.
What’s Next for Minimalist?
With HUL at the helm, Minimalist is gearing up for its next phase of growth. Here’s what the future holds:
Offline Expansion – HUL’s vast distribution network will help Minimalist go beyond e-commerce, making its products available in retail stores across India.
Going Global – The brand is set to strengthen its presence in the UK, US, Gulf countries, and Southeast Asia, tapping into new markets where demand for science-backed skincare is rising.
Product Innovation – Minimalist will continue launching new, high-performance products to stay ahead in the competitive skincare space.
Brand Positioning – Even under HUL’s umbrella, Minimalist aims to retain its core identity—a brand built on transparency, efficacy, and science-backed skincare.
With HUL’s resources and Minimalist’s digital-first DNA, the brand is well-positioned to dominate both Indian and global skincare markets.
A Defining Moment for India’s D2C Ecosystem
HUL’s acquisition of Minimalist is a landmark moment for India’s D2C ecosystem, proving that digital-first brands can achieve scale, profitability, and high valuations. It highlights the global potential of Indian startups and signals a shift in the beauty industry toward transparency and science-backed formulations. This deal is expected to drive more mergers and acquisitions in the D2C space, encouraging large corporations to invest in emerging brands. Ultimately, Minimalist’s success sets a new benchmark for the next generation of Indian consumer brands.
Conclusion: A Blueprint for D2C Success
Minimalist’s journey from a Jaipur-based startup to a ₹2,955 crore acquisition by HUL is a testament to the power of transparency, quality, and customer-centricity. By challenging industry norms and focusing on science-backed skincare, the brand has reshaped the Indian beauty market and set a new benchmark for D2C brands. As it scales under HUL’s umbrella, navigating offline expansion, competing with global giants like The Ordinary, and entering international markets will be its next big tests.
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