Fast-moving consumer goods giant Hindustan Unilever Limited (HUL) is reportedly in advanced talks to pay around 3,000 crore (more than $350 million) for the majority of the skincare startup Minimalist.

Minimalist is a skin and hair care brand that was founded by serial entrepreneurs Mohit and Rahul Yadav. Products from the line include moisturizers, toners, and serums. During the most recent fiscal year, the brand's only revenue stream came from the sale of these goods.

According to Moneycontrol, the first outlet to report on the development, it would also rank among the biggest transactions in recent memory in the direct-to-consumer (D2C) market.

In addition to its own website, Minimalist sells products on independent e-commerce sites like Amazon, Nykaa, and Flipkart.

From 184 crores in FY23 to 347 crore in FY24, Minimalist's operating revenue increased dramatically. In the most recent fiscal year, the company's profits doubled to 10.83 crore despite rising marketing expenses.

Because of its financial discipline, Minimalist is currently commanding a revenue multiple of about 10X, which is significantly higher than the 4-6X that similar direct-to-consumer (D2C) startups get during similar deals.

With its Series A round spearheaded by Peak XV (formerly Sequoia Capital), which owns a 27.9% stake as the largest external shareholder, Minimalist has raised about $17 million to date. According to TheKredible, Co-Founders Rahul and Mohit Yadav jointly own 62% of the business.

For a cash payment of 264.28 crore, HUL purchased a 51% share in D2C brand Oziva in December 2022.

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