Future of Minimalist in Doubt After HUL Acquisition, Warns Bombay Shaving Company CEO
Big Brand, Big Risk? Deshpande Predicts Minimalist May Fade Post Acquisition
The founder and CEO of Bombay Shaving Company, Shantanu Deshpande, has sparked intense discussion across India’s startup ecosystem by voicing serious concerns about the long-term survival of Minimalist, a popular skincare brand recently acquired by Hindustan Unilever (HUL).
In a thought-provoking post on social media, Deshpande speculated that Minimalist may struggle to retain its unique edge and could eventually disappear as a brand within the next few years under HUL’s umbrella.
Key Reasons Behind the Prediction
Deshpande’s bold claim is grounded in five key factors he believes could contribute to the brand’s decline:
1. Founders Have Exited
The original visionaries behind Minimalist have stepped away after the deal. According to Deshpande, once the creative force leaves, maintaining brand identity becomes significantly harder.
2. Loss of Startup Agility
With HUL’s massive corporate machinery now behind the brand, the startup-style agility and quick decision-making that once defined Minimalist could be lost.
3. Highly Replicable Products
Minimalist’s product line—although successful—is easy to replicate. Without constant innovation, competitors could quickly catch up.
4. Performance Pressure
Large conglomerates like HUL often expect brands to deliver strong returns on ad spend (ROAS) and return on capital employed (ROCE). If those expectations aren’t met quickly, investments may shrink.
5. Negligible Impact on HUL’s Balance Sheet
Deshpande pointed out that Minimalist likely contributes a tiny fraction to HUL’s overall valuation. With such a small impact, the brand may not remain a strategic priority.
“I Hope I’m Wrong,” Says Deshpande
Despite the grim forecast, Deshpande admitted that he would be delighted to be proven wrong. His post concluded with a note of hope, stating he “so badly hopes Minimalist thrives.”
However, his comments also serve as a broader warning to founder-led D2C brands—when acquired by corporate giants, preserving identity, speed, and consumer trust becomes a real challenge.
What This Means for the D2C Ecosystem
This development has reignited conversations around:
- The fate of startup brands post-acquisition
- The value of founder involvement beyond the buyout
- The difficulties of balancing scale with soul
Deshpande’s insights are particularly relevant for brands navigating the thin line between growth and cultural preservation after being absorbed into larger entities.
Startup Lessons from the Minimalist-HUL Deal
| Key Lesson | Insight |
|---|---|
| Retain the founders | Founders help maintain brand DNA and authenticity |
| Set realistic expectations | ROAS and financial KPIs should be balanced with long-term growth |
| Keep innovation alive | Fast-moving consumer brands must continue to disrupt post-acquisition |
| Avoid over-dependence | A parent company’s shifting priorities can impact brand investment |
Final Thoughts
The Minimalist acquisition is a major milestone in India’s D2C journey, but Deshpande’s critical viewpoint reveals the other side of the success story. For investors, founders, and corporate giants alike, this is a wake-up call: Buying a brand is easy—nurturing it sustainably is the real challenge.
