Mamaearth parent acquires cosmetic formulation brand CosmoGenesis

Honasa Consumer, the parent company of brands like Mamaearth, The Derma Co., Aqualogica, and Dr Sheth’s, on Monday announced the acquisition of assets of CosmoGenesis Labs, a cosmetic formulation and development company. The total consideration for the acquisition of assets is around Rs 4 crore, according to the regulatory filing.

With this acquisition, Honasa said it has taken a “significant leap in research-driven innovation” and aims to offer an even wider range of innovative, safe, and science-backed skincare solutions to new-age and next-gen consumers.

This is the fourth acquisition by Honasa so far. Other than CosmoGenesis, it has made three acquisitions to date – namely, skincare brand Dr Sheth’s at a valuation of Rs 28 crore, haircare brand BBlunt for Rs 135 crore, and content platform Momspresso for an undisclosed amount.

While Dr Sheth’s and BBlunt have proven to be growth drivers for Honasa since their acquisitions, the company pulled the plug on its costliest acquisition, Momspresso, ahead of its initial public offering (IPO) last year as the business failed to deliver the expected long-term value.

“This strategic alliance with CosmoGenesis will exponentially increase our ability to research new trends with greater efficiencies and help craft best-in-class products…This acquisition empowers us to tap into new sub-categories, leverage cutting-edge research and development, and ultimately, deliver exceptional value to our consumers,” said Ghazal Alagh, chief innovation officer and co-founder, Honasa Consumer.

Founded by Rohini Manoj in 2011, CosmoGenesis has until now facilitated over 5,000 cosmetic and personal care formulations for businesses in India using its fully equipped, state-of-the-art laboratory.

“We have been working with Honasa Consumer for some time now and have worked on some incredible innovations,” said Manoj, adding, “Our shared commitment to innovation and excellence, particularly in botanical ingredients and natural beauty care, ensures that we will continue to create groundbreaking products that our consumers can trust.”

Honasa recently reported its highest-ever quarterly net profit to Rs 30.5 crore for the fourth quarter (Q4) of financial year 2023-24 (FY24), compared to a loss of Rs 161.8 crore in the year-ago period. The company had posted a profit of Rs 25.9 crore a quarter ago.

The company’s consolidated revenue from operations grew 21 per cent year-on-year (Y-o-Y) to Rs 471.1 crore in Q4, up from Rs 387.9 crore a year ago and Rs 488.2 crore in Q3 FY24.

Honasa also turned net profitable for the entire financial year at Rs 110.5 crore, from a loss of Rs 150.9 crore the previous year. Consolidated revenue from operations grew to Rs 1,919.9 crore, from Rs 1,492.7 crore reported at the end of FY23.

The Gurugram-based firm’s total expenses in Q4 came in at Rs 450.9 crore, up from Rs 400.2 crore a year ago and Rs 464.5 crore a quarter ago.

First Published: May 27 2024 | 5:25 PM IST