Varun Alagh, Co-Founder of Honasa Consumer which owns Mamaearth and The Derma Co, on Tuesday (December 3) increased his stake in the company to 31.93% with a ₹4.5 crore investment, as per filings on the NSE.
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Now, Co-Founders Varun and Ghazal Alagh hold a combined 35% stake in the company, a notable figure in the startup ecosystem, where founders typically hold minimal equity after multiple funding rounds.
This move highlights the Alaghs’ strong belief in Honasa’s long-term growth prospects, despite recent challenges. In its Q2 FY25 results, the company reported a loss of ₹19 crore amid significant business transitions. The increased promoter stake signals confidence in steering the company toward sustained success.
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Honasa Consumer continues to attract robust backing from leading venture capital firms, including Peak XV Partners, Stellaris Venture Partners, Sofina Ventures, and Fireside Ventures.
Honasa Consumer reported a net loss of ₹18.6 crore for the second quarter that ended September 30, 2024. In the corresponding quarter of the previous fiscal, Honasa Consumer posted a net loss of ₹29.4 crore.
The company’s revenue from operations dropped 6.9% to ₹461.8 crore against ₹496 crore in the year-ago period. At the operating level, EBITDA loss stood at ₹30.7 crore in the second quarter of this fiscal over ₹40.1 crore in Q2 of the previous fiscal.
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Honasa Consumer’s younger brands, including The Derma Co, Aqualogica, BBlunt, and Dr. Sheth’s, achieved over 30% year-to-date (YTD) growth in both quarters of the year.
The focus categories — specifically face washes, sunscreens, and face serums — have seen year-on year (YoY) growth of over 28% in the first half, adjusted for inventory corrections, and continue to capture increasing market share. These categories now contribute nearly 50% of the company’s total business.
Shares of Honasa Consumer Ltd ended at ₹261.70, down by ₹0.65, or 0.25%, on the BSE.
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(Edited by : Shoma Bhattacharjee)
