Mamaearth’s Parent Honasa Consumer Cancels Fluence Pharma Acquisition

Mamaearth’s parent company, Honasa Consumer, has decided to withdraw from its intended acquisition of a 58% stake in the nutraceutical firm, Fluence Pharma. This decision arose from the failure to meet specific closing conditions laid out in the share purchase agreement. The company communicated the cancellation of this proposed transaction to the stock exchanges on August 25.

The announcement regarding the acquisition was made in June, with an estimated enterprise value of approximately Rs 135 crore. Under the terms of this deal, Honasa was set to acquire a majority 58% of Fluence Pharma, with intentions to purchase the remaining 42% in two phases over a span of five to seven years.

Furthermore, there were plans for the establishment of a wholly owned subsidiary by Honasa, named Honasa Health. This subsidiary aimed to develop a direct-to-consumer nutraceutical business by integrating Fluence Pharma’s clinical expertise and practitioner network with Honasa’s branding and digital distribution strengths.

Founded in 2012 by Amit Bhusari and Dr Rajendra Singh Rajput, Fluence Pharma provides hair and skin health supplements via dermatologists. Its product lines include brands like Hair Fact, Skin Fact, and Pro Fact. The company boasts a network of over 3,000 dermatologists across India and employs its unique patented Cyclical Nutrition Therapy (CNT) platform.

According to information from Honasa’s presentation, Fluence Pharma recorded revenues of about Rs 40 crore in FY26 and achieved an EBITDA margin exceeding 20%. Notably, over 70% of its income was derived from products primarily focused on hair health.

Even with the acquisition being called off, Honasa has affirmed its dedication to its nutraceutical strategy. The company will persist in exploring both organic and inorganic avenues to expand its consumer-centric business within this category.