Varun Alagh increases stake in Honasa Consumer to 31.93%; invests Rs 4.5 Crore

Varun Alagh, has raised his stake in Honasa Consumer to 31.93% following a Rs 4.5 crore investment. This move, disclosed in filings with the National Stock Exchange (NSE), comes after a significant shift in the company’s ownership structure

Together, Varun and Ghazal Alagh, co-founders of Honasa Consumer, the parent company of popular brands like Mamaearth and The Derma Co, now hold a combined 35% stake in Honasa Consumer, a substantial share in the startup ecosystem, where founders often see their equity diluted over multiple funding rounds.

Honasa Consumer reported a loss of Rs 19 crore in its Q2 FY25 results, reflecting ongoing business transitions. However, the decision to increase their stake underscores the Alaghs’ long-term vision for the company. In its Q2 FY25 results, the company reported a net loss of Rs 18.6 crore for the quarter ending September 30, 2024, an improvement compared to the Rs 29.4 crore loss in the same period last year. Revenue from operations fell 6.9% to Rs 461.8 crore, down from Rs 496 crore in Q2 FY24. The company’s EBITDA loss also decreased to Rs 30.7 crore from Rs 40.1 crore in the previous year.

Honasa continues to secure strong support from leading venture capital firms, including Peak XV Partners, Stellaris Venture Partners, Sofina Ventures, and Fireside Ventures. Honasa Consumer’s newer brands, such as The Derma Co, Aqualogica, BBlunt, and Dr. Sheth’s, achieved over 30% year-to-date growth in both quarters of FY25.