Last month, Minimalist was in conversation to be acquired by Hindustan Unilever for an astonishing 3,000 Cr, while it also tried to fundraise for growth. 

Let’s Make it Clean & Beautiful

For someone who has founded two startups, Mohit Yadav never aspired to become an entrepreneur. 

Fate had other plans.

Born and raised in Jaipur, Mohit worked in Credit Suisse as an AVP during the late 2000s. In 2006, the bank asked him to take a role in London or Hong Kong. 

It was a dream for many young Indians, but not for Mohit. 

Not wanting to be away from his family, Mohit joined hands with his younger brother – Rahul, a chemical engineer from IIT Roorkee – and founded Scopial Fashion, an online T-shirt store, in 2008. 

Scopial Fashion was eventually rebranded as Mangostreet, an online kids' fashion brand that crowdsourced their designs. It operated for four years before being sold to the erstwhile baby care e-commerce platform, Hushbabies, in 2012. 

Fresh from the high of having successfully sold their first startup, the brothers maintained their entrepreneur streak by joining another startup that had its roots in Jaipur - CarDekho. After two years at CarDekho, fate struck again. Mohit was asked to go to Indonesia as the CEO of Otis.com, an automobile portal launched as a joint venture between Cardekho and Emtek, Indonesia’s largest media company. 

This time, Mohit chose to go. But not for long. After spending two years in Jakarta, familial longing hit him, and he returned to Jaipur to start another venture with his brother. 

This time, it was a beauty & personal care (BPC) company with a unique offering – custom hair products catered to each customer’s requirement. Their startup, Freewill, raised almost 100 Cr. The duo had already raised money for two startups. 

However, after two years of operations, Freewill faced challenges in scaling. Mohit and Rahul were ready to move on to their next venture. They had 12 years of experience across three startups, strong investor relationships, and the latest insights into the BPC space. 

In October 2020, they launched a skincare brand called Minimalist, via a simple post on their Instagram account, which had barely 200-300 followers. There was no fanfare, advertisements, or even influencer marketing. 

Playing it cautiously, Mohit and Rahul had manufactured only 1,000 bottles of their product.

Within 2 days, they had 10,000 followers. Their stock had sold out! Within 8 months, they would reach an astonishing INR 100 Cr of revenue. 

The Minimalist was doing something different, that would disrupt the BPC market in India.

Scale Heros With Transparency

Mohit and Rahul had a simple, if bold, hypothesis. 

The Indian skincare market, dominated at that point by large legacy companies, was stagnating – not in terms of growth – but in terms of innovation and value added to the consumer.

Legacy brands had fallen into a rut – manufacture generic products that would claim a vast host of skincare benefits, ranging from fairness to removing acne, and leverage the faces of movie stars for marketing and sales.

Products were made to appeal to all 1.3 billion Indians, not to specific customer segments. The industry was plagued by opaque and mislabelling, exaggerated claims & a general lack of a data-based approach.

There was a void in the market – a lack of transparent, ingredients-first products oriented towards solving issues like acne and pigmentation. Going against the grain, Mohit and Rahul believed that a certain – and non-insignificant – section of Indian skincare consumers were ready for data and science-backed solutions.

Their inspiration? A U.S.-based brand called The Ordinary (founded 2013), which had successfully tested this hypothesis in the American market.

The Minimalist was founded on two key principles.

First – absolute transparency. Product labels focused on just ingredients and their use cases. Product information pages on their website showcased data from consumer studies. Their Instagram page posted information on the efficacy and use of various chemicals used in skincare products, such as lactic acid, AHA, BHA, and Niacinamide. They were empowering customers to make science-backed, informed choices.

Second – each product should be a ‘hero’ SKU (a term FMCG uses to denote flagship products that drive a significant part of your revenue). That meant a highly focused product portfolio with clear and specific use cases.

Their hypothesis was proven right – demand for their products exploded immediately. Online skincare influencers immediately picked up their new offerings, generated unpaid organic content, and drove traffic towards the brand with minimal (no pun intended!) marketing spends.

The launch was not without controversy, owing to the stark similarity between the Minimalist’s products and The Ordinary’ – the ingredients-focused labelling, the design aesthetic and even the shape of the bottles – meant to imitate pharmaceutical products.  

The Ordinary was a well-known brand amongst the Indian online skincare community. It was venerated for its transparency but generally considered unaffordable by most.

While some criticised the Minimalist for the stark similarities, some praised them for giving Indian consumers access to transparent science-based offerings at affordable prices.

Both sides drove even more traffic to the Minimalist. As more people tried out their products, the narrative skewed in favour of the brand. 

Having successfully tested their hypothesis in the Indian market, the Minimalist was ready to scale.

Honest, Authentic, Affordable

By 2020, India’s skincare market was valued at ~$1.7B, following a steady 13-15% growth over the previous half-decade. 

The legacy players continued to dominate the market, marking a high barrier to entry for new entrants. Hindustan Unilever(HUL) led with brands such as Lakme and Ponds and catered to various segments across the affordable and premium categories. 

L’Oreal catered to a more affluent and urban audience by establishing a strong presence with Garnier and L’Oreal Paris. The skincare market in India was categorised into three major segments. 

Millennials were the largest segment, highly influenced by global trends and social media. Gen Z was an up-and-coming segment, who began to show interest in more affordable yet trendy products. Older adults focused on anti-aging products made up the third, but smaller segment. 

Skincare would be no different as the COVID pandemic struck India and introduced multiple new behaviours across every type of industry. People were mandated to sit at home, and as self-care became more important, individuals focused more on their well-being. 

During the pandemic, searches for “DIY skincare” and “best products for acne” spiked by over 40%.

A report from Deloitte also claimed that over 60% of millennials and Gen Z in India actively engage with various digital platforms to research before purchasing skin care products, highlighting the importance of informed decision-making in these segments. 

As a result of this, Instagram and YouTube emerged as powerful tools for educating consumers and also influencing their purchasing decisions. 

It brought about the rise of skincare influencers, who promoted ingredient knowledge among their followers, creating a more informed customer base that, in turn, demanded transparency from brands in India. 

In addition to demanding transparency from brands, consumers have also developed a preference for “clean beauty” - a movement that advocates products free from harmful chemicals giving rise to startups such as Nat Habit.

A McKinsey survey in 2021 would also highlight the importance of social values in the growing Millenial and Gen Z audience in India. 

With a growing belief in sustainability, ethical sourcing, and cruelty-free practices, the most significant segments in the market also preferred brands that aligned with their ethos. They also claimed audiences would pay a premium for sustainable products, including skincare. 

E-commerce platforms like Nykaa and Amazon would also see increased traffic as consumers flocked online during the pandemic. These platforms made it easy for consumers to explore and purchase a wide variety of products online while also facilitating access to many international brands and niche offerings. 

Consumers could also compare reviews, ingredients, and pricing online before choosing. 

With a shift to online purchasing and more informed decision-making the new normal, Minimalist was primed to make the most of the skincare market as the pandemic continued. 

Hide Nothing

Minimalist’s early strategies revolved around two key pillars: transparency and education, which perfectly synergised with the changes in consumer preferences during the pandemic. 

From its early days, Minimalist highlighted the importance of knowing what consumers put on their skin, increasing the awareness of ingredients in skincare products. They would offer straightforward formulations with minimal yet quality ingredients, accompanied by clear labelling and scientific backing. 

Younger consumers who sought authenticity in their skincare routines were immediately drawn to the brand for its transparency. They would also implement multiple innovative product launch strategies to drive awareness and engagement among their audiences. 

Ingredient Spotlight Launches would tease the introduction of a new ingredient weeks before the product was to be launched. It would build curiosity and educate the audience about the latest ingredients, creating a higher demand at the actual time of product launch. 

They would also focus on social media campaigns to educate and promote their products on Instagram. 

The brand would kick off its Instagram handle with the #KnowYourIngredients campaign in early 2020, one of their most successful campaigns. Through it, they aimed to empower consumers to understand the ingredients in the skincare products they used. They would use reels, posts, and stories to share in-depth information about key active ingredients such as niacinamide, retinol and salicylic acid, emphasising how they would benefit different skin types. 

Later in the year's second half, they would also launch the #CleanBeautyMovement, which focuses on debunking myths about beauty standards in India. They encouraged customers to choose products based on efficacy and not on hype as a means to engage with their audience in a more meaningful manner. 

They would also build strong partnerships with newly established skincare influencers alongside their campaigns. 

Amazed by the efficacy of the Minimalist’s products and how they would now serve as viable alternatives to expensive international products, many influencers and dermatologists were quick to share their reviews and experiences with Minimalist products. These would help add credibility and build trust among new customers. 

Minimalist initially focused mainly on facial serums, launching up to 17 serums by the start of 2021 and 1 product to tackle hair fall. This would grow to over 20 products by 2021, catering to multiple skin concerns. 

And while it had scaled to Rs 100Cr in revenue within 8 months, it was even more impressive that they were profitable from Day 1, unlike most startups in India. The Freewill entity would be absorbed into the Minimalist entity, with resources transferred. Early 2021 saw a significant increase in demand, as it claimed 100% M-o-M growth, majorly through word-of-mouth marketing. 

By the end of the pandemic, Minimalist had amassed a considerable fan following in India with its unique approach to skincare and was ready to make the next big leap. 

Building a Contrarian D2C Scale Playbook

Minimalist charted a unique growth trajectory with its contrarian D2C approach.

This success stemmed from a unique, streamlined approach. Minimalist controlled its production with in-house manufacturing, curated a concise product line of under 20 SKUs, and implemented a unified pricing strategy across all online channels from their website to marketplaces.

They rejected typical D2C tactics. No sales, no excessive discounts, and no celebrity endorsements. Instead, Minimalist kept things literally ‘minimal’ focusing on trust and efficacy.

While competitors were riding the "natural" and "chemical-free" wave, Minimalist boldly embraced "chemical" as its core identity and pioneered active ingredient marketing in the beauty space, educating consumers on what truly works.

This approach resonated with a growing segment of Indian consumers who were becoming increasingly aware of active ingredients, thanks partly to the global buzz around brands like The Ordinary.

The Ordinary paved the way by demystifying skincare science, and Minimalist, much like The Ordinary, named the chemicals upfront and offered them at accessible prices due to in-house manufacturing. 

Unlike more prominent multinational brands that relied on imports, Minimalist's pricing, ranging from ₹300-₹700, made them a highly attractive option in the Indian market. This unconventional approach proved remarkably effective. Minimalist achieved consistent month-over-month growth while staying profitable from the first month.

This distinctive approach, validated by consistent growth and profitability, attracted significant investor interest. In July 2021, Minimalist secured a $15M (110 Cr) Series A round with the entry of HUL on the cap table. HUL’s move would be prescient. 

The funding provided a significant boost to Minimalist's already robust R&D efforts. With a dedicated team, including former L'Oréal and Estée Lauder researchers, and a 2-5% revenue allocation to research, the company was well-positioned to leverage this capital for further product innovation.

In addition to R&D, Minimalist aimed to scale its in-house manufacturing capacity and enhance distribution by building a presence in Tier-1 and Tier-2 cities. They also strategically partnered with leading online marketplaces like Nykaa and Amazon, leveraging their platforms for deeper market penetration and enhanced visibility. 

This, combined with a focus on customer retention through rapid product innovation cycles to meet changing demands like more potent SPF formulations, fueled their growth.

As it attracted investor love, a rush of skincare brands crept in.

Wowing the Skintellectuals

Minimalist had to stand out in a crowded and competitive D2C beauty market.

Minimalist emerged as a standout player thanks to its lean, in-house R&D model and tightly curated product range. The brand kept its Cost of Goods Sold (COGS) around 35% of revenue by formulating products in its laboratory, thereby cutting out third-party markups and allowing for rapid innovation.

This efficient approach underpinned its healthy 10% net margin—an achievement made possible by allocating around 30% of its income to targeted advertising and marketing (A&M), around 15% to employee costs, and approximately 10% to operational expenses.

In FY23, Minimalist reported operating revenue of INR 184 Cr, a jump from INR 108 Cr in the previous year, underscoring how its focus on cost efficiencies, transparency, and consumer education resonated with a growing segment of ingredient-conscious “skintellectuals.”

By contrast, many well-known D2C brands struggled to maintain profitability amid rising operating costs. Wow Skin Science, for instance, posted impressive revenue growth (INR 340 crore in FY22), yet high advertising spend—about 40% of revenue—coupled with surging material costs led to significant losses.

Mamaearth, although it doubled revenues to INR 943 crore in FY22, devoted roughly 42% of its earnings to advertising, breaking even at a 0% net margin. Meanwhile, Nykaa, an omnichannel marketplace hosting third-party and private labels, kept COGS comparatively high—around 57%—due to its broad product portfolio and procurement costs. However, it still managed a modest 2% profit margin through disciplined cost management.

Standing apart from these peers, Minimalist’s strategy revolved around in-house R&D, strict SKU discipline (focusing on a limited lineup of serums and toners), and a measured marketing investment.

It reduced reliance on expensive influencer campaigns or celebrity endorsements by transparently sharing product ingredients and targeting a niche community of customers who valued efficacy over hype. This approach kept customer acquisition costs in check and cultivated a loyal consumer base eager for innovative, science-driven formulations.

Minimalist’s blend of educational marketing, operational discipline, and quality-driven manufacturing set it apart.

Pandemic Ends, Skin Care Brands Rush in

New businesses boldly venture in where fools fear to tread.

As the pandemic receded, actives-based skincare brands became the range. Minimalist had to contend with Foxtale, Deconstruct, Pilgrim, Skin Inspired, d’you and The Derma Co. by Mamaearth. A common refrain back then was that it was never easier to launch a personal care brand, and never more difficult to scale it.

Minimalist had to go beyond the bare minimum to fend off the competition and hold its own. 

It doubled down on transparency as its USP, publishing complete ingredient lists with exact percentages of actives.

Rather than dumbing down products – a common marketing practice - Minimalist focused on educating users on, say, the benefits of niacinamide, which incidentally was the hero product in Pond’s Light moisturiser and Olay’s Total Effects face moisturiser for years.

The brand’s earnestness resonated with a discerning class of users who no longer took a mono carton at its face value. They read labels by habit, had a working knowledge of formulations, and could cut through the marketing to grasp the science behind beauty products, provided the information was made accessible to them.

Minimalist also challenged the traditional notion that all chemicals are harmful to the skin, addressing the mindset of ‘Why feed your skin what you would not eat’.

Positioned as ‘transparent science for your skin’, Minimalist combined simple packaging, honest advertising, and a tightly managed cost structure to build a loyal customer base. Its products, available on its website, Amazon, and Nykaa, achieved an impressive 60% repeat purchase rate.

Yet, as with all D2C brands, questions arose: could Minimalist sustain its rapid growth, or would it eventually hit a growth wall?

A Clean Revolution is Here

With 90% of sales generated online, Minimalist has achieved 8x growth to ₹184 crores in yearly revenue just a few years after launch without relying on cash-heavy offline distribution.

This impressive trajectory continued, with a further 2x growth, reaching an estimated ₹350 crores revenue for FY24. 

To the Yadav brothers’ credit, their operations have eked out a profit in each of the last four financial years, and they had ~100Cr+ of liquid assets as of March 2024. 

Many fellow challenger brands have shined during this period and then lost their sheen. WoW Science has struggled to break even and is now looking for a strategic buyer at a significantly lower valuation. Mamaearth’s parent company, Honasa Consumer appears to be at the receiving end of a miscalibrated offline distribution strategy.

On the product front, Minimalist offers over 50 products, mainly skin, body, hair, and lip care. In June 2024, it expanded into baby care, entering a territory dominated by Mamaearth and The Good Glamm Group’s The Moms Co.

While affordability remains the guiding pillar for the price-sensitive Indian market, Minimalist has abstained from gimmicky flash sales and desperate deep discounts while maintaining consistent product pricing across platforms.

A large part of its 572-member workforce comes with pharmaceutical experience. The younger Yadav brother’s background in chemical engineering has cultivated a detail-oriented culture where formulators deeply understand how different actives and molecules interact. This is in stark contrast to many competitor brands that take a superficial approach to formulation and fully outsource manufacturing.

The team also comprises cosmetic science specialists, who ensure that their final creation – a beauty product – does not suffer in aesthetic appeal at the altar of science 

Minimalist’s early success in a cut-throat market is a nod to, ‘Do Things that Don’t Scale’. The opening of the economy in 1991, followed by the crowning of Sushmita Sen and Aishwarya Rai as Miss Universe and Miss World, kickstarted the Indian beauty and personal industry.

With a few exceptions, the industry relied on a one-size-fits-all approach. Products were marketed as miracle solutions to a wide-eyed consumer base, heavily influenced by celebrity endorsements and lofty advertising claims.

Minimalist is not the first to deviate from this beaten path, but it avoids mass-market appeal. Each product targets a niche market with a specific pain point, designed to methodically address the problem without straining the wallet—a strategy that explains its breakout growth.

For the longest time, beauty and personal care felt like rocket science. Today, it is all that and more — just minus the rocket.

David+ Goliath= Turbocharged Growth

Minimalist aims to take its show-don’t-tell approach beyond India to take on the likes of The Ordinary on their home turf. It is available in 7 international markets – USA, UK, UAE, Malaysia, Nepal, Indonesia and Saudi Arabia.

The growing preference for dermatologist-backed products and a broader push towards transparency will boost Minimalist’s appeal internationally. However, scaling up without compromising product quality and fending off competition, especially from local imitators, would remain key challenges. An impending slowdown in consumer spending, beauty regulations in foreign markets, and adapting business playbooks to newer geographies could be significant headwinds. 

While Minimalist is expanding internationally to compete with global giants, it is equally focused on strengthening its domestic presence. The brand plans to establish over 100 exclusive brand outlets within India, aiming to develop a meaningful offline footprint and unlock its next leg of growth.

Minimalist will need significant capital and a broader operational base to fuel these ambitions. Enter Hindustan Unilever, reportedly in talks to acquire the brand at a valuation of INR 3K crore—a fivefold jump from its valuation of INR 630 crore just three years ago.

The burgeoning growth, the financial discipline and a strong P&L have enabled Minimalist to command a 10x revenue multiple even in discussion, well above the 4-6x seen in D2C deals.

If finalised, this deal would be a strategic win for both HUL and Minimalist. For HUL, acquiring Minimalist will bolster its skincare portfolio and allow it to connect with younger, digitally-savvy consumers.

Minimalist, in turn, will gain access to HUL’s extensive distribution network, marketing expertise, and operational resources, positioning it for even accelerated growth.

This move aligns with a broader trend of FMCG giants acquiring D2C startups to enhance their digital reach and leverage innovative, customer-centric approaches. Recent examples include Marico’s acquisition of Beardo and ITC’s purchase of Yogabar.

In The Devil’s Advocate (1997), Al Pacino’s character declares, “Vanity—definitely my favorite sin”. Truth be told, Pacino could be talking about any of us. The enduring human desire to look good fuels an industry of trends, where businesses rise and fall as consumers adopt and outgrow them.

What is heartening about Minimalist’s success is its utilitarian, cause-and-effect approach to beauty. 

Unlike brands that promise “miracle” solutions, Minimalist operates on an unsaid philosophy: the product is merely an enabler. The actual transformation lies within the user.

By prioritising transparency and treating customers as informed equals, the Yadav brothers have built a brand that does not just cater to trends but creates its own. Much like Al Pacino’s character, they deserve their share of kudos.

Minimalist has become India’s cleanest beauty brand, and its global ambitions could make it a force to reckon with

Writing: Keshav, Nikhil, Samarth, Shreyas, Tanish and Aviral Design: Ponsang and MidJ