Minimalist Stays in Jaipur After HUL’s ₹3K Cr Acquisition

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Minimalist, the direct-to-consumer (D2C) skincare brand, has decided to continue its operations from Jaipur even after its high-profile acquisition by Hindustan Unilever Limited (HUL) for ₹3,000 crore. Mohit Yadav, cofounder and CEO of Minimalist, confirmed this decision during the Rajasthan IT Day 2025 event in Jaipur. He emphasized Jaipur’s livability, short commute times, and infrastructure growth as key reasons for staying in the city. Founded in 2020 by Mohit and Rahul Yadav, Minimalist has gained significant traction in India’s beauty and personal care market. HUL recently acquired a 90.5% stake in the brand, valuing it at ₹2,955 crore. Despite the acquisition, the Yadav brothers will continue managing operations for at least two years.

Minimalist has thrived despite operating outside the conventional startup hubs of Bengaluru and Mumbai. The company has focused on innovation, transparency, and high-quality skincare products. It recorded a net profit surge of 110% in FY24, reaching ₹10.9 crore. Yadav also shared key insights for startup founders, urging them to evaluate funding options carefully. He suggested that bank loans could be a better alternative to venture capital for companies with a strong profitability track record. Additionally, he highlighted the evolving startup exit landscape, where strategic partnerships are now viable alternatives to IPOs. As Jaipur emerges as a growing startup hub, Minimalist’s success underscores the city’s potential for fostering innovation and scaling businesses.

1. Understanding Minimalist’s Business Model and Growth

1.1 Introduction to Minimalist

Minimalist is a D2C skincare brand known for its transparent formulations and research-driven product development. It has built a reputation for delivering effective, science-backed skincare solutions. The brand operates through an online-first model, ensuring direct engagement with consumers while leveraging digital marketing strategies for growth.

1.2 Revenue Model

Minimalist generates revenue primarily through direct sales from its website and major e-commerce platforms like Amazon, Nykaa, and Flipkart. By eliminating middlemen, the company maintains competitive pricing while ensuring product authenticity. Additionally, its subscription-based model and bulk purchasing discounts contribute significantly to recurring revenue.

1.3 Funding Background

Since its inception in 2020, Minimalist has raised approximately $15 million in funding before the HUL acquisition. The company attracted investors due to its rapid revenue growth and loyal customer base. The acquisition by HUL marks a strategic move to expand its market reach and integrate into a larger distribution network.

1.4 Founders’ Background

Mohit and Rahul Yadav, the brains behind Minimalist, have strong entrepreneurial and technical backgrounds. They identified a gap in the skincare market for high-quality, affordable, and transparent products. Their expertise in digital marketing and product development helped them scale Minimalist into a leading D2C brand within a short period.

1.5 Products and Services

Minimalist offers a range of skincare products formulated with clinically proven ingredients. Its product lineup includes serums, cleansers, moisturizers, sunscreens, and specialized treatments targeting issues like pigmentation, acne, and aging. The brand follows a ‘clean beauty’ approach, ensuring its formulations are free from harmful additives.

2. Minimalist’s Decision to Stay in Jaipur

2.1 Mohit Yadav’s Announcement

During the Rajasthan IT Day 2025 event, Mohit Yadav reaffirmed that Minimalist would continue operating from Jaipur. He highlighted Jaipur’s favorable business environment, growing infrastructure, and access to skilled talent as key factors behind the decision.

2.2 Jaipur as a Startup Hub

Jaipur is emerging as a competitive startup ecosystem. With improved connectivity, reduced operational costs, and government support, more entrepreneurs are choosing the city over traditional startup hotspots like Bengaluru and Delhi.

2.3 Talent Pool and Infrastructure

Jaipur has a growing pool of skilled professionals, especially in the technology and e-commerce sectors. Many professionals are willing to relocate to Jaipur due to its superior quality of life compared to metropolitan cities.

3. Minimalist’s Acquisition by HUL

3.1 Deal Breakdown

HUL acquired a 90.5% stake in Minimalist for ₹2,670 crore, valuing the company at ₹2,955 crore. The Yadav brothers will continue managing operations for the next two years to ensure a smooth transition.

3.2 Impact on Business Operations

The acquisition provides Minimalist with HUL’s extensive distribution network, research capabilities, and global reach. However, the core brand philosophy and business model will remain unchanged.

4. Key Learnings for Startup Founders

4.1 Evaluating Funding Options

Mohit Yadav advised startup founders to assess whether venture capital is necessary for their business. If profitability is strong, alternative funding sources like bank loans might be a more cost-effective solution.

4.2 The Changing Landscape of Startup Exits

Startups today have multiple exit options beyond IPOs. Strategic acquisitions, partnerships, and private equity deals are becoming viable alternatives.

4.3 Importance of Location

Minimalist’s success from Jaipur challenges the notion that startups must be based in metro cities to scale effectively. Founders should consider factors like infrastructure, cost efficiency, and talent availability when choosing their headquarters.

5. The Startups News’ Perspective

At The Startups News, we believe that Minimalist’s journey offers invaluable insights into the evolving startup ecosystem in India. As a leading platform for startup updates, we provide comprehensive coverage of emerging business trends, funding developments, and entrepreneurial success stories. Visit us at The Startups News for the latest insights into India’s vibrant startup landscape.