In a recent development, Stellaris Venture Partners, a prominent venture capital firm, has successfully divested a 1% stake in Honasa Consumer Limited, the parent company of Mamaearth, through an open market transaction. The bulk deal, conducted via the National Stock Exchange (NSE), amounted to a substantial INR 140.61 Cr, with 32,17,468 shares changing hands at an average price of INR 437.04 per share.
This move has resulted in Stellaris Venture Partners reducing its shareholding in Honasa Consumer to 4.78%, down from its previous 5.78% stake. The VC firm has been actively supporting industry leaders since its establishment in 2017, with Mamaearth being one of its notable investments alongside Whatfix, Propelld, Ayu Health, Turno, Rigi, and others.
Mamaearth, founded in 2016 by Varun and Ghazal Alagh, specializes in mother and baby care products. Stellaris Ventures had previously led a Series A funding round for Mamaearth, injecting $4 Mn (INR 27.5 Cr) in September 2018. The startup, operating under Honasa Consumer Limited, has expanded its product portfolio to include brands like The Derma Co., Aqualogica, and Ayuga, and has acquired stakes in BBlunt and Dr. Sheths.
Honasa Consumer achieved unicorn status in December 2022 after securing $52 Mn at a valuation of $1.2 Bn in a funding round led by VC firm Peak XV (formerly Sequoia Capital). Subsequently, the company went public on November 7, 2023.
The September quarter of the financial year 2023-24 saw Honasa Consumer Limited reporting a notable profit after tax (PAT) of INR 29.4 Cr, reflecting a significant 94% increase from the corresponding period in the previous year. For the first half of FY24, the company achieved INR 960.6 Cr in sales revenue, compared to INR 1,492.7 Cr in FY23.
As of January 9, 2024, Mamaearth shares commenced trading on the Bombay Stock Exchange (BSE) at INR 488.45, marking a 3.03% increase.
