Mamaearth Parent Honasa Calls Off ₹135 Cr Fluence Pharma Acquisition

Beauty and personal care (BPC) major Honasa Consumer has called off its proposed ₹135 Cr acquisition of a 58% stake in nutraceuticals startup Fluence Pharma after certain closing conditions under the share purchase agreement were not fulfilled. 

In an exchange filing, the Mamaearth parent said the proposed acquisition has been called off “due to non-fulfilment of closing conditions specified under (the) share purchase agreement executed by the company and Fluence Pharma”. 

The company did not specify which closing conditions were not fulfilled.

Honasa’s board approved the acquisition in June, with the company proposing to buy the 58% stake from Fluence Pharma’s existing shareholders for ₹135 Cr. The secondary transaction was expected to be completed within eight weeks, subject to the fulfilment of certain conditions.

Honasa also planned to acquire the remaining 42% stake in Fluence Pharma through secondary transactions in two tranches over the next five to seven years. 

Despite the deal falling through, Honasa said it remains committed to its nutraceuticals strategy and will continue to evaluate organic and inorganic opportunities to build a consumer-focused business in the category. 

The acquisition would have combined Fluence Pharma’s patented cyclical nutrition therapy (CNT) and network of dermatologists with Honasa’s consumer brands, distribution, and marketing capabilities. Fluence Pharma sells skin and hair health supplements exclusively through a network of more than 3,000 dermatologists and trichologists.

Honasa views nutraceuticals as its next growth frontier, estimating the addressable market at around ₹16,000 Cr as consumers increasingly seek “inside-out” solutions for skin and hair concerns.

Alongside approving the proposed acquisition in June, Honasa’s board also greenlit the incorporation of a wholly owned subsidiary, Honasa Health, to build the new vertical. The subsidiary was proposed to manage the end-to-end B2C operations of the nutraceuticals business. 

The proposed acquisition was part of Honasa’s five-year “Honasa 3.0” strategy, under which it aims to more than double its revenue to over ₹5,500 Cr by FY31 while improving its EBITDA margin to over 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.

Honasa has previously acquired Dr. Sheth’s, BBlunt, and Reginald Men to expand into categories such as skincare, haircare, and men’s personal care. It also acquired a minority stake in oral care brand Fang last year. 

Besides Mamaearth, Honasa’s portfolio includes skincare brands Aqualogica and The Derma Co, colour cosmetics brand Staze Beauty, and fragrance brand FIKN. 

On the financial front, Honasa’s consolidated net profit more than doubled to ₹90.5 Cr in the quarter ended June 2026 from ₹41.3 Cr in the year-ago period. Operating revenue rose 27% to ₹755.9 Cr from ₹595.3 Cr a year ago, marking its highest-ever quarterly revenue and profit. 

Shares of Honasa Consumer were trading 0.93% lower at ₹481 on the BSE at 10:10 IST.

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