Honasa Shares Worth INR 1,602 Cr Sold by Fireside Ventures, Peak XV, Others

During a recent surge in the market value of D2C startup Honasa Consumer, several investors including Peak XV Partners, Fireside Ventures, and Stellaris Venture Partners decided to cash in on their holdings through bulk transactions. The total amount garnered from the sale of their shares amounted to a substantial INR 1,601.68 Cr. Among the notable sales, Peak XV, previously known as Sequoia India, sold off 1.23 Cr shares valued at INR 610.98 Cr, while Sequoia Capital Global divested 28.71 Lakh shares worth INR 142.12 Cr. Fireside Ventures offloaded 65.83 Lakh shares for INR 326.05 Cr, while Sofina and Stellaris sold shares worth INR 297.79 Cr and INR 224.74 Cr, respectively.

Related: Mamaearth Parent Company Combining Two Subsidiaries to Eliminate Cost Overlaps

Morgan Stanley and ICICI Prudential Life Insurance Company eagerly bought the shares that hit the market. Morgan Stanley Asia Singapore Pte purchased 24.17 Lakh shares for INR 119.67 Cr, whereas ICICI Prudential acquired 28.78 Lakh shares for INR 142.49 Cr. These significant transactions occurred during a period of rising stock prices for the company led by Varun and Ghazal Alagh.

The company’s stock has been steadily climbing since the release of its financial results for the first quarter of the 2024-25 financial year (Q1 FY25). The company’s net profit rose by a significant 62.9% to reach INR 40.2 Cr in the last quarter compared to INR 24.7 Cr in the same quarter last year, mainly due to increased sales of its beauty products. The total revenue from operations saw a solid 19.3% increase year-on-year, reaching INR 554 Cr in the same quarter. Additionally, financial experts have shown optimism towards Honasa’s diverse brand strategy. For example, Emkay projected a target price of INR 525 for the company by June 2025.

According to our research, newer brands like The Derma Co and Aqualogica are growing quickly. There seems to be a shift in distribution towards the top-50 towns, benefiting the Mamaearth brand due to repeat purchases. The company expects to see better profits from its popular products, with Honasa planning to reduce trade margins to encourage more repeat purchases.

The startup’s shares, which had reached a high of INR 546.5 earlier this week, dropped by 5.48% on Thursday to close at INR 493.40 per share due to bulk deals. By the end of Thursday’s trading, the market value of this direct-to-consumer unicorn was INR 16,026 Cr (around $1.90 Bn).

In a recent series of bulk deals, multiple investors, including Peak XV Partners, Fireside Ventures, and Stellaris Venture Partners, collectively divested shares in Honasa Consumer worth INR 1,601.68 Cr. Notably, Peak XV (formerly Sequoia India) sold 1.23 Cr shares for INR 610.98 Cr, while Sequoia Capital Global offloaded 28.71 Lakh shares totaling INR 142.12 Cr. Additionally, Fireside Ventures divested 65.83 Lakh shares for INR 326.05 Cr, and Sofina and Stellaris sold shares worth INR 297.79 Cr and INR 224.74 Cr, respectively. Following this divestment, Morgan Stanley and ICICI Prudential Life Insurance Company absorbed a significant portion of the shares, purchasing shares worth INR 119.67 Cr and INR 142.49 Cr, respectively. The stock’s performance experienced a notable shift, reaching a record high of INR 546.5 prior to the bulk deals, followed by a 5.48% decline on the BSE.