Honasa Consumer Ltd, the driving force behind illustrious direct-to-consumer (D2C) brands such as Mamaearth, The Derma Co, and BBlunt, announced a significant funding milestone of Rs 765.2 crore (approximately $92 million). This financial boon was secured a day before the company’s highly anticipated initial public offering (IPO).
The investment round witnessed participation from an impressive list of 49 anchor investors. Notable names in this consortium include Smallcap World Fund Inc, Fidelity International, Abu Dhabi Investment Authority, and Government Pension Fund Global. Other leading financial institutions such as Goldman Sachs, ICICI Prudential FMCG Fund, and Hornbill Orchid India Fund have also marked their presence in this funding feat.
After strategic deliberations with BRL Managers, Honasa Consumer Ltd confirmed the allocation of 23,617,228 equity shares to these anchor investors. The shares have been priced at Rs 324 each, bringing the total investment to Rs 765.2 crore, or a tad over $92 million.
Mutual funds have also shown a significant interest, with seven prominent ones participating through 19 distinct schemes. These include industry leaders like ICICI Prudential, Aditya Birla Sun Life, and Whiteoak Capital.
In recent disclosures, MamaEarth indicated some shifts in company ownership. Co-founders Varun Alagh and Ghazal Alagh have decided to divest part of their stakes. Concurrently, initial investors such as Fireside Ventures and Stellaris Venture Partners are slated to offload shares in the upcoming IPO. Notably, key players like Peak XV Partners (formerly Sequoia Capital) and Evolvence India have decided against joining the Offer For Sale (OFS).
Financially, Honasa Consumer Ltd has showcased a robust growth trajectory. The fiscal data ending March 31, 2023, revealed a 58.3% increase in operational revenue, leaping from Rs 943 crore in FY22 to Rs 1,493 crore in FY23. Further details of its Q1 FY24 results indicated a healthy revenue of Rs 464.49 crore and a post-tax profit of Rs 24.3 crore.
