HUL-Backed Minimalist Crosses ₹500 Cr Revenue in FY25, Posts Loss Amid ₹46 Cr Exceptional Charge
Introduction
Hindustan Unilever Limited (HUL)-owned direct-to-consumer skincare brand Minimalist has crossed a major milestone in FY25, with revenue surging 48% year-on-year to ₹514.8 crore. The Jaipur-based science-led beauty brand has now entered the ₹500 crore revenue club, reinforcing its position as one of India’s fastest-growing premium D2C skincare companies.
However, despite strong topline growth and positive operating performance, the company reported a net loss during the fiscal year due to one-time exceptional expenses. The numbers highlight both the scale Minimalist has achieved and the cost intensity of building a high-growth digital-first beauty brand.
Financial Performance
Minimalist’s revenue from operations rose sharply to ₹514.8 crore in FY25, up from ₹347.4 crore in FY24, according to consolidated financial statements filed with the Registrar of Companies (RoC). Including ₹2.84 crore in non-operating income, total income stood at ₹517.6 crore, compared to ₹350.1 crore in the previous fiscal year.
Despite strong revenue growth, the company reported a net loss of ₹31.5 crore in FY25, compared to a net profit of ₹10.8 crore in FY24. The loss was primarily driven by exceptional items worth ₹46.1 crore recorded during the year.
Importantly, before accounting for these one-time charges and taxes, Minimalist posted a profit of ₹13.6 crore, indicating that core operations remained stable.
The company reported an EBITDA of ₹18 crore, with an EBITDA margin of 3.45%, while Return on Capital Employed (ROCE) stood at 10.55%. On a unit economics basis, Minimalist spent ₹0.98 to earn every ₹1 of operating revenue, demonstrating near break-even efficiency at scale.
From Beginning Till Now: How They Began
Founded in 2020 in Jaipur by Mohit Yadav and Rahul Yadav, Minimalist entered the Indian beauty market with a sharp differentiation strategy — transparency, science-backed formulations, and ingredient-led positioning.
At a time when consumers were increasingly aware of skincare ingredients, Minimalist positioned itself as a brand offering actives like niacinamide, salicylic acid, retinol, and vitamin C in clean, minimal packaging — similar to global ingredient-focused brands.
The company adopted a digital-first, D2C model, selling through its own website and major online marketplaces such as Amazon, Nykaa, and Flipkart.
Within just five years, the brand scaled rapidly, riding on India’s growing premium skincare demand and the surge in online beauty commerce.
Founders and Leadership
Minimalist was founded by Mohit Yadav and Rahul Yadav, who collectively control 62% of the company. Their product-led and digital-first approach helped the brand gain rapid consumer trust and scale.
Before the HUL acquisition, Minimalist raised $17 million in funding, including a $15 million Series A round led by Peak XV, which holds a 27.9% stake in the company.
In January 2025, FMCG giant Hindustan Unilever Limited (HUL) signed an agreement to acquire a 90.5% stake in Minimalist at a pre-money valuation of ₹2,955 crore (approximately $350 million). The deal is among the largest transactions in India’s D2C beauty segment and is expected to close in Q1 FY26.
Cost Structure
As Minimalist scaled, expenses grew alongside revenue. Total expenses rose 51% year-on-year to ₹504 crore in FY25, compared to ₹333.2 crore in FY24.
Key cost components included:
- Advertising & Promotion: ₹154 crore (over 30% of total expenses), up 28% YoY.
- Cost of Materials Consumed: ₹146.7 crore, up 57% YoY.
- Distribution Costs (Marketplace Commissions): ₹84.3 crore.
- Employee Benefits: ₹36.8 crore, up 29% YoY.
- Other Overheads (Rent, Warehousing, Logistics, Legal): ₹82 crore.
The sharp increase in marketing and marketplace commissions reflects continued investments in customer acquisition, brand building, and distribution expansion.
Product Expansion and Market Position
Minimalist offers a range of skincare and haircare products, including serums, toners, moisturizers, cleansers, and active-based treatments. Product sales remained the sole source of operating revenue in FY25.
The brand has carved a niche in India’s premium skincare segment by combining affordability with science-backed positioning. Its transparent ingredient communication strategy and strong marketplace ratings have helped it compete effectively against both domestic D2C brands and international beauty players.
Crossing ₹500 crore in revenue places Minimalist among the leading digitally native beauty brands in India.
Expansion and Growth Outlook
With the HUL acquisition, Minimalist gains access to deep distribution networks, supply chain efficiencies, and financial backing from one of India’s largest FMCG players.
While FY25 reflected a temporary setback due to one-time exceptional charges, core operating performance remained positive. The integration with HUL is expected to strengthen offline distribution, improve sourcing efficiencies, and support long-term brand building.
As consumer demand for premium, ingredient-focused skincare continues to rise, Minimalist is well-positioned to expand both online and offline channels, scale margins, and deepen market penetration.
The absence of visible operational disruption post-acquisition suggests that HUL is allowing the brand autonomy — a positive sign for sustained innovation and growth.
Conclusion
Minimalist’s FY25 performance highlights the dual reality of high-growth D2C brands — rapid scale with significant cost intensity. While exceptional expenses pushed the company into a reported loss, its strong revenue growth, positive EBITDA, and strategic backing from HUL signal long-term potential.
With ₹500+ crore revenue, strong brand recall, and FMCG backing, Minimalist stands at a crucial inflection point in India’s premium beauty market.
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