Mamaearth Parent Honasa Calls Off ₹135 Cr Fluence Pharma Acquisition

Honasa Consumer, the parent company of beauty brand Mamaearth, has called off its proposed ₹135 crore acquisition of a 58% stake in nutraceuticals startup Fluence Pharma. The company cited the non-fulfillment of closing conditions stipulated in the share purchase agreement as the reason for terminating the deal.

In an exchange filing, Honasa Consumer confirmed the termination, without specifying which closing conditions were not met. The acquisition, initially approved by the board in June, aimed to merge Fluence Pharma's patented cyclical nutrition therapy and its network of dermatologists with Honasa's consumer brands, distribution, and marketing capabilities.

Fluence Pharma specializes in skin and hair health supplements, distributing them exclusively through over 3,000 dermatologists and trichologists. Honasa views the nutraceuticals market, estimated at ₹16,000 crore in India, as a significant growth frontier driven by increasing consumer demand for "inside-out" health solutions.

Despite the deal's collapse, Honasa reiterated its commitment to its nutraceuticals strategy, stating it will continue to explore both organic and inorganic opportunities in the sector. This move was intended to be part of Honasa's broader "Honasa 3.0" strategy, which aims to significantly increase revenue and profitability by FY31.

Honasa Consumer has previously expanded its portfolio through acquisitions of brands like Dr. Sheth's, BBlunt, and Reginald Men, diversifying into skincare, haircare, and men's personal care segments.