Brand Minimalist Built An INR 100 Cr Business Within Eight Months Of Inception 🧴
More than 60 new-age brands, such as publicly listed Mamaearth, IPO-hopeful SUGAR Cosmetics, and their reputed peers like Wow Skin Science, Plum, mCaffeine, Himalayan Organics, Anveya Living and 82 degree E jostling for a place in the market, the competition is getting cut-throat. The D2C players are also trying to lock horns with local and global giants like Hindustan Unilever, Himalaya, L’Oréal and P&G for a share of the overall BPC market, projected to grow to $30 Bn by 2027, per a Redseer-Peak XV report.
However, the high-octane competition has not deterred newbies like Minimalist from entering the race. Set up by the Jaipur-based siblings – Mohit and Rahul Yadav – the startup develops clinically tested and highly effective skincare, haircare and body care products using ‘active’ ingredients (more on that later). It also claims to be one of the fastest-growing D2C brands in the country.
In an interview founder said :
We started in October 2020 and grew to an INR 100 Cr business [in revenue terms] in eight months. We were profitable when we did INR 1 Cr of products in the first month at Minimalist. Even today, we are in the green every month. It is a rare scenario as most companies have negative EBITDA early in the business while we had 100% positive EBITDA from the beginning,” Mohit said.
In July 2021, Minimalist raised INR 110 Cr ($15 Mn) in Series A, led by Peak XV Partners (formerly Sequoia Capital India), with participation from Unilever Ventures. It has also entered overseas markets through Minimalist Global and operates in the US, the UK, the Middle East and some parts of Southeast Asia.
In FY23, the brand registered an operating revenue of INR 184 Cr, a 70.37% increase from INR 108 Cr in the previous financial year. However, its net profit fell 68.7% to INR 5 Cr from INR 16 Cr in FY22. Mohit attributed the drop in profit to the startup’s ongoing hiring and team-building efforts. Minimalist has grown from 80 people to 650 members over the last two years.
Further in another interview founder said that “We realised that if we can solve two things – bring the right product to our customers and be honest and transparent with them – only then we can build a brand. That is how the idea of Minimalist came about,”
Freewill was no longer operational, but the brothers moved on to launch the Minimalist site in the thick of the Covid-19 pandemic. Soon, the brand expanded its reach and started selling on Amazon and Nykaa within the next three months.
At Minimalist, ‘active’ skincare ingredients are primarily used to target specific skin/body issues and hair concerns. Active ingredients include chemical and biological minerals (inorganic solids produced by living organisms like plants) and other components responsible for product effectiveness. For the best outcomes, a selective mix of active ingredients can be used in a single product.
Minimalist is a copy of ordinary?? 😶
While the founders have not explicitly stated it, numerous articles, social media posts, and discussions confirm that Minimalist replicated The Ordinary's design, product range, and brand image. The founders themselves have acknowledged the "transparent Indian beauty range" as a key value, but the similarities to The Ordinary are undeniable.
