How Minimalist Conquered India's D2C Beauty Market? - Business Case Study

00:00 - Intro
01:09 - Early Days
02:54 - Origin of Minimalist
05:35 - Crazy Growth
08:21 - Financials: breaking down profitability
11:10 - 3,000 Crore Exit and Road Ahead

HUL’s recent ₹3,000 crore acquisition of Minimalist marks India's biggest all-cash D2C deal. Founded in 2020 in Jaipur, this young brand managed to disrupt a competitive beauty industry dominated by giants like HUL and Unilever. What makes this deal extraordinary is that the founders, Rahul and Mohit Yadav, retained 60% equity, earning ₹1,700 crore in cash.

Founding & Early Days
Before Minimalist, the Yadav brothers had launched Freewill in 2018, a personalized haircare brand. Despite positive customer response, it failed to scale due to high costs and complexity. This experience made them realize that India’s beauty industry relied heavily on marketing rather than effective products.

The Birth of Minimalist
Inspired by The Ordinary, a Canadian skincare brand known for transparency, the Yadavs launched Minimalist in 2020. Unlike brands exploiting the “organic” and “natural” narrative, Minimalist openly displayed ingredients, emphasizing that not all chemicals are harmful.

With just 1,000 face serum bottles and no marketing budget, Minimalist tested the waters via an Instagram post. Beauty influencers organically discovered and promoted it, leading to rapid traction. Some accused them of copying The Ordinary, but the founders openly acknowledged their inspiration.

Growth Strategy
Instead of pouring money into influencer marketing like competitors such as Mamaearth, Minimalist relied on genuine customer testimonials, making their brand appear more authentic. Their marketing spend was only 25% of revenue (vs. 40–50% for others), while their customer repeat rate stood at 60%—three times the industry average.

This efficiency helped Minimalist reach ₹100 crore in revenue in just eight months, a milestone that took Mamaearth three years to achieve. The brand’s lean product catalog also ensured better inventory control and operational efficiency.

Financials & Profitability Challenges
Despite rising revenue, Minimalist’s profit margins dropped from 20% to 3% (FY21–FY24) due to high manufacturing costs. Unlike others, Minimalist owned its production facilities, prioritizing quality over cost-cutting. Their Cost of Goods Sold (COGS) was 35%, higher than industry standards (Mamaearth at 30%).

Minimalist’s strategy mirrored Tesla’s: invest in superior products and let customer satisfaction drive marketing.

Online-First Strategy & Offline Expansion
Initially, Minimalist focused on online sales, ensuring that customers understood the science behind skincare. However, scaling beyond ₹500 crore required offline expansion. HUL’s acquisition gives Minimalist access to its vast retail network of 9 million stores, enabling broader distribution.

HUL’s Acquisition & The Ordinary’s Entry
Minimalist’s biggest challenge is The Ordinary’s entry into India via Nykaa, backed by Estée Lauder. To compete, Minimalist needed HUL’s financial and distribution strength. This acquisition ensures Minimalist remains a leader in India’s science-backed skincare market.

The Big Question
With HUL’s support, can Minimalist continue to dominate the Indian market, or will The Ordinary take over?