Through this acquisition, Honasa Consumer will execute its entry into the category by establishing its dedicated subsidiary, Honasa Health
Mamaearth parent Honasa Consumer is acquiring a majority stake of 58 per cent in science-backed nutraceuticals company Fluence Pharma at an enterprise value of Rs 135 crore, as per a stock exchange filing.
This strategic acquisition marks Honasa’s entry into the high-growth nutraceuticals space. The nutraceuticals category is at an inflection point in India, driven by rising consumer demand for holistic, “beauty-from-inside” interventions and an active awareness of nutritional gaps. The acquisition is expected to close over the next two months.
Through this acquisition, Honasa Consumer will execute its entry into the category by establishing its dedicated subsidiary, Honasa Health. Under this new entity, the company will scale a highly differentiated B2C nutrition portfolio by combining Fluence’s patented clinical science and deep practitioner trust with its own expertise in brand building, consumer insights, and digital-first distribution.
“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.
The company will acquire remaining 42 per cent equity stake of Fluence Pharma via secondary purchase in two tranches over the next five to seven years from completion of acquisition of aforesaid stake in accordance with 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.
Fluence Pharma enters this partnership with a strong financial profile, reporting an Rs 40 crore revenue and over 20 per cent Ebitda margin in the last financial year. Honasa said that this strategic expansion targets India’s rapidly growing nutraceuticals market, which is currently valued at over Rs 16,000 crore.
