Honasa Looks To Tap Beauty Tech To Boost Sales: Report

Mamaearth parent Honasa is reportedly preparing for its next phase of expansion with a focus on beauty tech products to boost its sales and revenue streams.

An ET report, citing people familiar with the matter, said that Honasa is exploring categories such as laser masks, LED light therapy devices, face massagers, and facial rollers, a marked shift from its current product mix of traditional beauty and personal care offerings.

“Mamaearth is growing at its own pace and much of it will come from offline markets,” a person told the publication. 

In the online space, Honasa is investing in the growth of The Derma Co and Dr Sheth’s for product categories like face wash and sunscreen, considering that Mamaearth’s proposition is being fine-tuned, it added. 

The company houses other brands like Aqualogica, BBlunt and Staze. 

Inc42 has sent the query to the company to seek confirmation on the development. The story will be updated on receiving the response. 

Honasa Consumer’s consolidated net profit declined 18% to INR 25 Cr in the fourth quarter of FY25 from INR 30.4 Cr in Q4 FY24, as margins fell. On a quarter-on-quarter (QoQ) basis, the profit declined 3.8% from INR 26 Cr.

Its revenue from operations rose 13.3% to INR 533.6 Cr in Q4 from INR 471 Cr in the same period last year. Sequentially, it grew 31% from INR 517.5 Cr. 

For the full fiscal year FY25, net profit declined 34.2% to INR 72.7 Cr from INR 110.5 Cr in FY24. Operating revenue grew 7.6% to INR 2,066.9 Cr in FY25 from INR 1,919.9 Cr in the previous year.

Honasa said its offline distribution grew in FY25, with 1.2 Lakh unique outlets billed during the year as against 45,000 in Q1 FY25.

At the time of disclosing its Q4 results, the company said it expanded AI adoption across functions, including AI-assisted shopping and social listening tools. Its offline expansion saw The Derma Co cross INR 100 Cr ARR.

Last month, Honasa appointed Yatish Bhargava as its new chief business officer (CBO). Bhargava replaced Zairus Master, who resigned from the role of CBO in January this year.

It must be noted that the company saw some disruptions to its business over the last few quarters as it transitioned to a new direct distribution model across top 50 cities under ‘Project Neev’. Launched in Q2 FY25, Project Neev is Honasa’s internal restructuring initiative aimed at overhauling its general trade distribution system.

The new model is aimed at simplifying and modernising the company’s supply chain, as Honasa relied on a multi-layered setup involving super stockists and smaller distributors earlier. This old model often led to delays, inconsistent stock availability, and poor visibility across the network.

Founded in 2016 by Varun and Ghazal Alagh, Honasa is best known for its personal care brand Mamaearth. Its portfolio includes skincare, haircare, and babycare items, offered under brands like Mamaearth, The Derma Co., Aqualogica, and BBlunt. The company operates through both online and offline channels, using a mix of D2C platforms and retail distribution to reach consumers.

Shares of Honasa closed the trading session today 0.68% lower at INR 263.80 on the BSE.