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Expanding beyond beauty and personal care, Mamaearth parent Honasa Consumer has announced the acquisition of a 58 per cent stake in science-backed nutraceuticals company Fluence Pharma at an enterprise value of Rs 135 crore, according to a stock exchange filing.
The transaction marks Honasa Consumer’s formal entry into India’s fast-growing nutraceuticals market, which is witnessing increasing consumer interest in preventive healthcare, wellness, and “beauty-from-within” solutions. The acquisition is expected to be completed over the next two months.
As part of the move, Honasa Consumer will establish a dedicated subsidiary, Honasa Health, to spearhead its nutrition and wellness business. The new entity will leverage Fluence Pharma’s patented clinical formulations and strong practitioner credibility while combining them with Honasa’s strengths in brand building, consumer insights, and digital-first distribution to develop and scale a differentiated direct-to-consumer nutrition portfolio.
“The beauty and personal care landscape is entering a new era where consumers are increasingly seeking holistic, inside-out solutions that address beauty concerns at their root. While the last decade was shaped by topical actives, we believe the next decade will be defined by the powerful convergence of science-backed skin and hair care and nutraceuticals,” stated Varun Alagh, Co-founder and Chief Executive Officer, Honasa Consumer.
Under the terms of the transaction, Honasa Consumer plans to acquire the remaining 42 per cent stake in Fluence Pharma through secondary share purchases in two phases over the next five to seven years following the completion of the initial acquisition. The phased buyout will be carried out in accordance with the provisions outlined in the share purchase agreement and shareholders’ agreement.
“To unlock the true potential of our proprietary science, however, we needed a partner who could take these clinical solutions to a wider consumer base. Honasa Consumer brings the perfect opportunity and infrastructure for us. Their unparalleled digital-first capabilities, data-driven consumer insights and proven track record of scaling young brands will allow us to strengthen our distribution and solve consumer problems across India,” stated Amit Bhusari, CEO and Co-founder, Fluence Pharma.
Backed by healthy financial performance, Fluence Pharma generated revenue of approximately Rs 40 crore in the previous financial year while maintaining an EBITDA margin of over 20 per cent. Honasa Consumer noted that the acquisition aligns with its strategy to tap into India’s fast-expanding nutraceuticals sector, a market estimated to be worth more than Rs 16,000 crore.
