Honasa, Mamaearth’s Parent, Expands into Color Cosmetics with ‘Staze’

Honasa Consumer Limited is a leading Indian company in the digital-first beauty and personal care (BPC) market. Established in 2016, they’ve become the largest player in this space by revenue as of FY23. They focus on creating a new generation of brands that cater to millennials, with a commitment to purpose, technological innovation, and addressing evolving consumer needs. Their portfolio includes popular brands like Mamaearth, The Derma Co., Aqualogica, and Ayuga.

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Mamaearth’s parent company, Honasa Consumer, has entered the color cosmetics sector with the introduction of a fresh brand called Staze.

According to a statement from the company, this move aims to address a significant gap in India’s color cosmetics market.

Targeting young Indian women aged 18-24, the new brand promises to provide high-quality products at affordable prices. The company also asserts that items within this new line typically cost less than INR 300.

Honasa revealed that a dedicated team of 43 beauty aficionados, including experts in products, skin health, and influential figures, came together to craft Staze. According to the company’s vision, Staze is set to debut as a digital-centric brand, making its debut on its official website and various other platforms such as Nykaa, Purplle, Amazon, and Flipkart.

Speaking on the venture, Honasa’s chairman and CEO, Varun Alagh, emphasized the significant potential within the color cosmetics sector, boasting a remarkable Compound Annual Growth Rate (CAGR) of 12% and a hefty market value of INR 15,000 Crores. Recognizing this opportunity gap, Staze emerges as a strategic addition to Honasa’s diverse portfolio, marking an intentional step into the vibrant world of color cosmetics.

Jumping into the conversation, Ghazal Alagh, the co-founder and chief innovation officer at Honasa, expressed, “We strongly believe that today’s Gen Z consumers are on the lookout for value and innovation, and Staze is perfectly positioned to not only meet but exceed their expectations.”

Staze joins the array of brands under Honasa’s roof, alongside well-known names like The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheths. This new addition comes hot on the heels of the company’s venture into the personal wash realm with the introduction of moisturizing lotion soaps.

In the field of color cosmetics, the company is now competing against major players such as L’Oréal, Lakme, and SUGAR.

Established in 2016 by the couple Varun and Ghazal Alagh, Honasa went public last year. In the quarter ending December (Q3) FY24, it reported a net profit of INR 25.9 Cr, a 264% increase from the previous year’s INR 7.1 Cr in Q3 FY23. Operating revenue also rose by 28% year-on-year (YoY) to INR 488.2 Cr during the same period.

Based on the strong financial performance, brokerage firm Citi Research began covering Honasa in February with a ‘BUY’ rating and a price target of INR 550.

On Thursday (March 28), shares of Honasa Consumer ended the trading session at INR 402.00, up 1.54% on the BSE.

Honasa Consumer’s launch of the Staze brand represents a strategic foray into the color cosmetics sector, targeting young Indian women with high-quality, affordable products. Backed by a team of 43 beauty experts, Staze will debut as a digital-centric brand on multiple platforms. This move underscores Honasa’s deliberate expansion into color cosmetics, placing it in competition with major industry players. The company’s strong financial performance and positive market reception further solidify its position, with shares closing positively on the Bombay Stock Exchange.