Peak XV Rakes In 10X Gains, Makes INR 800 Cr From Minimalist Exit

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VC firm Peak XV Partners will make a whopping 10X returns on its investment in Minimalist, following the D2C skincare brand’s acquisition by FMCG major Hindustan Unilever (HUL).

The VC major, which holds a 27.5% stake in Minimalist, first invested in the startup in 2019. It is set to make INR 800 Cr on its investment of INR 80 Cr in the startup, sources said.

HUL announced the acquisition of Minimalist today in a deal that will value the D2C startup at INR 2,955 Cr (about $342 Mn) and is one of the largest acquisitions in the Indian startup ecosystem in recent times. The company is acquiring a 90.5% stake in the startup for INR 2,670 Cr (about $309 Mn). HUL will also make a primary infusion of INR 45 Cr in Minimalist. 

The transaction, which will be completed by Q1 FY26, will see Minimalist’s founders Mohit Kumar Yadav and Rahul Yadav, Peak XV and its seed investment platform Surge, and Twenty Nine Capital Partners sell off their stake in the startup. 

Minimalist’s founders are expected to cumulatively make around INR 1,500 Cr by selling their 57.35% stake in the startup. 

HUL will acquire the remaining 9.5% stake in Minimalist in about two years. The cofounders will continue to head the operations of the startup for the next two years.

HUL expects the inclusion of Minimalist in its portfolio to add “another step in the transformation journey of the company’s beauty & wellbeing portfolio towards evolving and higher growth demand spaces”.

For the conglomerate, the beauty and personal care segment constitutes about 37% of its revenues. Its portfolio of BPC brands include Lifebuoy, LUX, Sunsilk, Clinic Plus, Dove, Lakmé, Pond’s and Closeup.

However, the segment’s financial health hasn’t been that great over the past two quarters. In Q3 FY25, HUL’s beauty and wellbeing segment reported a 1% revenue growth while underlying volume growth (UVG) witnessed a “low-single digit decline”. 

In this, HUL’s skin care sales were impacted by a “delayed winter”. It is pertinent to mention that the conglomerate’s portfolio doesn’t have specific serums for skincare, healthcare that Minimalist offers.

Founded in 2020, Minimalist] (https://inc42.com/startups/how-d2c-brand-minimalist-built-an-inr-100-cr-business-within-eight-months-of-inception/)is a consumer focused skin and hair care brand that retails its products through its own website and online marketplaces such as Amazon, Nykaa, Flipkart, and Myntra. While its top line surged 89% to [INR 347.4 Cr in the fiscal year 2023-24 (FY24), its annual revenue run rate for FY25 at the end of December 2024 stood at INR 500 Cr, HUL said.