Hindustan Unilever, the Indian subsidiary of the British consumer goods giant, is in advanced talks to acquire four-year-old direct-to-consumer startup Minimalist for up to $350 million, according to sources familiar with the matter. This potential acquisition would mark a significant expansion of Unilever's skincare portfolio in India, where it has been actively investing in the health and wellbeing category.

This deal would be the latest in a series of strategic acquisitions by Hindustan Unilever in India. Just last year, the company acquired Oziva and Wellbeing Nutrition, expanding its presence in the health and wellbeing space. When asked about the potential acquisition, a Hindustan Unilever spokesperson stated that the company "evaluates various strategic opportunities for the growth and expansion of our business" as part of its ongoing business strategy.

Minimalist, a Jaipur-based startup, operates a skincare brand that offers a wide range of products, including sunscreen and hair repair serum. The company has seen significant growth, with revenue surging 89% to $40.8 million in the fiscal year ended March 2024. Notably, Minimalist has also achieved profitability, making it an attractive target for acquisition.

Hindustan Unilever has a pre-existing relationship with Minimalist, having participated in the startup's Series A round in mid-2021 through its venture arm, Unilever Ventures. Peak XV Partners, an early investor in Minimalist, led the startup's seed funding in late 2019. Despite requests for comment, Minimalist and Peak XV Partners did not respond.

The potential acquisition of Minimalist would add to Hindustan Unilever's existing portfolio of brands, including Dove, Pond's, Lakme, Sunsilk, Lux, and Lifebuoy. With a market cap of over $65 billion, Hindustan Unilever is well-positioned to make strategic acquisitions that expand its presence in key markets like India.

It's worth noting that Minimalist had attempted to secure capital from venture capital firms at a valuation of around $300 million in the second half of last year, according to a report by Mint. The potential acquisition price of $350 million suggests that Hindustan Unilever sees significant value in Minimalist's skincare brand and its growth potential.

While the talks are ongoing, a deal has yet to be finalized, and the parties involved have cautioned that the deliberations are private. However, if the acquisition goes through, it would mark a significant milestone in Hindustan Unilever's expansion in India and further solidify its position as a major player in the country's consumer goods market.

The potential acquisition of Minimalist also highlights the growing trend of traditional consumer goods companies acquiring direct-to-consumer startups to expand their reach and capabilities. As the Indian market continues to evolve, it will be interesting to see how this deal plays out and what implications it may have for the broader consumer goods industry.