Honasa Consumer Acquires Majority Stake In Fluence Pharma For ₹135 Cr

Continuing its acquisition spree, Mamaearth parent Honasa Consumer’s board has approved a majority stake acquisition in nutraceuticals company Fluence Pharma, marking its entry into the fast-growing nutrition and supplements space.

It will acquire 58% stake in the company worth ₹135 Cr from its existing shareholders. The secondary transaction is expected to fructify within eight weeks. 

Further, the company plans on buying out the remainder 42% equity stake via secondary transactions in two tranches over the next 5-7 years, in accordance with share purchase agreement and shareholders’ agreement.

Founded in 2012 by Amit Bhusari and Dr Rajendra Singh Rajput, Fluence Pharma manufactures and sells skin and hair health supplements through a network of over 3,000 dermatologists and trichologists. 

The brand offers condition specific OTC supplement kits built on CNT and sold exclusively through dermatologists. The company’s turnover for the fiscal year FY25 stood at ₹37.2 Cr, up 3% YoY.

Charting into the nutraceuticals territory, Honasa’s board has also greenlit setting up a new wholly-owned subsidiary, Honasa Health, to build this new vertical. 

With Honasa Health, the company would look at building end-to-end B2C operations of the nutraceuticals business. Honasa Health is proposed to be incorporated with an initial paid-up capital of ₹1 lakh, comprising 10,000 equity shares of face value of ₹10 each.

Under the subsidiary, Honasa would aim to fuse Fluence Pharma’s patented Cyclical Nutrition Therapy (CNT) with its network of dermatologists with Honasa’s consumer brands, distribution and marketing capabilities.

Why Is Honasa Entering The Nutraceuticals Space?

As per CEO Varun Alagh, nutraceuticals is the next phase of growth in beauty and personal care, with consumers increasingly seeking “inside-out” solutions for skin and hair concerns. The company estimates India’s nutraceuticals market valuation at around ₹16,000 Cr as of now.

The acquisition is in line with Honasa’s recently unveiled “Honasa 3.0” strategy. Under the five-year roadmap, the company is eyeing to double its FY31 revenue to over ₹5,500 Cr by FY31 while improving EBITDA margins to more than 15%. 

As part of the plan, Honasa aims to build multiple large brands, scale its offline distribution network from about 1.2 Lakh outlets to more than 3 Lakh outlets, and reduce its dependence on flagship brand Mamaearth by creating several new growth engines across its portfolio.

At its investor day earlier this month, the company projected growth for Mamaearth to over ₹2,000 Cr as well as its aim to make  The Derma Co. cross ₹1,500 Cr in annual revenue by FY31. It also plans to build at least two additional brands with annual revenue of more than ₹500 Cr each, as it doubles down on its multi-brand strategy.

Beyond its existing beauty and personal care portfolio, Honasa believes nutraceuticals, fragrances and oral care are the key “next horizon” categories that could drive future growth.

The company expects these newer businesses to contribute incremental revenue over the next five years as it expands beyond traditional skincare and haircare products.

The Fluence Pharma acquisition directly aligns with that strategy. Through the deal, Honasa gains access to the growing nutraceuticals market and can offer consumers nutrition-led skin and haircare solutions alongside its existing beauty brands. 

The move also follows comments made by CEO Varun Alagh earlier this year that the company was exploring acquisition opportunities in fragrance and nutrition-focused beauty categories as part of its expansion plans.

Notably, ever since pivoting to a house-of-brands model, the company has expanded beyond Mamaearth through acquisitions and investments across beauty, grooming and personal care categories, including Dr. Sheth’s, BBlunt, Reginald Men and oral care startup Fang. 

The acquisition comes at a time when Honasa is seeing a sharp improvement in its financial performance. In FY26, the company reported a net profit of ₹200.2 Cr, up 175.4% from ₹72.7 Cr a year earlier, while operating revenue rose 15.7% to ₹2,391.9 Cr. 

Shares of Honasa ended today’s trading session 1.14% higher at ₹419.8 on the BSE.  

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