Mamaearth parent ends proposed ₹135 crore deal but says its nutraceutical plans remain intact.
Honasa Consumer, the parent company of Mamaearth and The Derma Co, has withdrawn from its proposed acquisition of a 58% stake in nutraceutical company FluencePharma. The company cited the failure to meet closing conditions outlined in the Share Purchase Agreement as the reason for ending the transaction. The decision was disclosed by Honasa in a regulatory filing on Tuesday. The company, however, didn’t specify which particular conditions required for the completion of the deal weren’t met.
The development comes just over two months after Honasa announced the proposed transaction on June 23. At the time, the company had planned to acquire the majority stake in FluencePharma through a secondary purchase at an enterprise value of ₹135 crore, subject to customary closing adjustments and the fulfilment of agreed conditions.
Planned entry into nutraceuticals.
The proposed FluencePharma acquisition was expected to give Honasa Consumer a direct entry into India’s nutraceutical market. The company had planned to build this business through its wholly owned subsidiary, Honasa Health.
FluencePharma’s focus on science-led nutritional products for skin and hair concerns was expected to complement Honasa’s existing presence in beauty and personal care. The proposed structure would have brought together Fluence’s formulation and clinical capabilities with Honasa’s consumer-focused brand-building and digital distribution experience. The acquisition was therefore more than a standalone investment. It formed part of Honasa’s broader effort to expand beyond traditional beauty and personal care into adjacent health and wellness categories.
Nutraceutical strategy continues.
Despite the termination, Honasa has indicated that its plans for the nutraceutical segment haven’t been abandoned. The company said it will continue evaluating both organic and inorganic opportunities to develop a consumer-focused business in the category. For the company, the immediate outcome is a delay rather than a complete change in direction. Honasa will now have to assess other possible routes into nutraceuticals, including developing products internally or considering alternative acquisition opportunities.
For Honasa Consumer, the next phase will likely focus on how it pursues its nutraceutical ambitions without the FluencePharma acquisition. The company has maintained that the category remains part of its strategic agenda, leaving the door open for further investments or partnerships.
For now, however, the ₹135-crore FluencePharma transaction will not move ahead, ending Honasa’s proposed majority acquisition just weeks after the company’s announced plans to enter the nutraceuticals market.
