In a significant development, a consortium of investors consisting of Peak XV, Stellaris Ventures, Sofina Ventures, and Fireside Ventures has collectively sold a massive Rs 1,600 crore ($190 million) worth of shares in Honasa Consumer Limited, the parent company of popular direct-to-consumer (D2C) skincare and beauty brand MamaEarth.
According to data from the National Stock Exchange (NSE), the investors sold 3.24 crore shares of MamaEarth at an average price of Rs 495.48 per share. The sell-off marks a significant exit for the investors, who currently hold a substantial portion of the company.
Peak XV, the lead investor, along with its former entity Sequoia Capital Global Growth Fund III, divested around Rs 753 crore ($90 million) worth of shares, while Sofina Ventures, Stellaris Ventures, and Fireside Ventures sold shares worth Rs 298 crore, Rs 225 crore, and Rs 326 crore, respectively.
Interestingly, ICICI Prudential Life and Morgan Stanley also collectively purchased Rs 262 crore worth of shares in MamaEarth, indicating that the company still has a strong investor base.
The significant sell-off comes at a time when MamaEarth reached its all-time high share price of Rs 547 on Tuesday this week. The Gurugram-based firm’s overall market capitalization stood at Rs 16,046 crore ($1.91 billion) as of September 12.
In the first quarter of this fiscal year, the company reported a 17.6% quarter-on-quarter increase in revenue, reaching Rs 554 crore, up from Rs 471 crore in Q4 FY24. This marked the firm’s most profitable quarter, with Rs 40 crore in profit after tax (PAT).
The sale of shares is a transition for the investors, who have been significant supporters of MamaEarth. Peak XV’s portfolio also includes other successful companies like Blinkit, Zomato, Freshworks, Awfis, Ixigo, and Go Fashion.
The handling of this article will provide an informative and neutral summary of the financial transaction involving MamaEarth and its investors, while highlighting the significant implications for the company’s future prospects.