Top Stock To Watch Today: HUL in focus as reports suggest acquisition of Minimalist for Rs 3,000 crore

Hindustan Unilever Limited (HUL) has captured market attention today following reports of its near-finalized deal to acquire Jaipur-based skincare startup Minimalist for ₹3,000 crore (approximately $350 million). If confirmed, the acquisition would mark one of the largest deals in the direct-to-consumer (D2C) skincare space in recent years.

Minimalist’s growth and valuation

• The startup, backed by Peak XV Partners, has seen its valuation soar from ₹630 crore (around $75 million) three years ago to ₹3,000 crore. This rapid growth has been fueled by rising revenues and consistent profitability.
• In FY24, Minimalist reported ₹350 crore in revenue, up 89% from ₹184 crore in FY23. Profits also more than doubled from ₹5 crore to ₹11 crore during the same period.
• With a revenue multiple of about 10X, Minimalist stands out in the D2C sector, where similar deals typically fetch a multiple of 4-6X.

Strategic significance for HUL

The acquisition aligns with HUL’s strategy to integrate new-age brands into its portfolio, enabling access to a younger consumer base and leveraging its established distribution network. The deal comes three years after Minimalist raised ₹110 crore ($15 million) from Unilever Ventures and other investors to scale its business.

Broader FMCG trends

HUL’s move follows a trend among FMCG giants like Marico, Dabur, and ITC, which have acquired brands such as Beardo, Plix, and Yogabar to strengthen their digital-first business models. Unlike many other D2C startups, which have often been sold at steep discounts due to scaling challenges, Minimalist stands out as a financially disciplined and profitable enterprise.

Market performance

HUL shares closed 1.53% higher on Friday, January 3, at ₹2,406.25. The news of this acquisition could further influence the stock’s movement in today’s session.

Hindustan Unilever Share Price history