Honasa Consumer promoter Varun Alagh invests further ₹4.5 Crore

4 Dec 2024 , 09:22 AM

On Tuesday (December 3), Varun Alagh, Co-Founder of Honasa Consumer, which owns Mamaearth and The Derma Co, boosted his share in the company to 31.93% with a ₹4.5 Crore investment, according to NSE records.

Co-founders Varun and Ghazal Alagh now own a combined 35% of the company, which is unusual in the startup sector, as founders often own little stock after many investment rounds.

This action demonstrates the Alaghs’ firm conviction in Honasa’s long-term growth possibilities, notwithstanding recent obstacles. In Q2 FY25, the company reported a loss of ₹19 Crore due to significant business shifts. The increasing promoter ownership indicates confidence in the company’s long-term success.

Honasa Consumer continues to receive significant investment from major venture capital companies such as 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 ending September 30, 2024. In the preceding fiscal quarter, Honasa Consumer had a net loss of ₹29.4 Crore.

Honasa Consumer’s younger brands, such as The Derma Co, Aqualogica, BBlunt, and Dr. Sheth’s, saw over 30% year-to-date (YTD) growth in both quarters of the year.

The target categories, notably face cleansers, sunscreens, and face serums, experienced year-on-year (YoY) growth of more than 28% in the first half, accounting for inventory adjustments, and continue to gain market share. These categories currently account for over 50% of the company’s total business.

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