Honasa’s Reset Year, Paytm’s Global Ambitions & More

Honasa’s Reset Year

Honasa is set to enter 2026 with a very different playbook. After undergoing a brutal distribution reset in 2025, the D2C giant now boasts a Mamaearth that is all about younger brands and premiumisation. So, what will define Honasa’s trajectory next year?

Lessons From 2025: This year, Honasa finished its inventory clean-up and distributor churn that stabilised execution and restored profitability. With financials showing improvement by mid-year, the D2C giant shifted gears to expand its house of brands.

In Growth Mode: The company’s next phase hinges on concentrating Mamaearth around five core categories – face wash, shampoo, sunscreen, moisturiser and baby care – which bring 70% of the revenue. While the flagship brand anchors stability, the offensive is being led by younger labels like The Derma Co., Aqualogica, and Dr. Sheth’s that can grow quickly, shoulder innovation risk, and bring high revenue upside.

Betting On New Markets: The listed major is also selectively planting seeds in segments ripe for disruption. The entry into oral care via a 25% stake in Fang Oral Care is a calculated bet on a category that Honasa projects will reach INR 6,200 Cr by 2030. 

Simultaneously, the INR 195 Cr acquisition of Reginald Men is expected to provide Honasa with immediate regional depth, particularly in Southern India, and a platform that could scale to over INR 500 Cr in revenue in the coming years.

Pivot To Premiumisation: The launch of Luminéve signals the company’s shift toward the affluent consumer. By moving into prestige skincare, Honasa is evolving past its value-conscious roots to improve average order values and gross margins. However, intensifying competition and execution risk remain high. 

As the D2C juggernaut exits its reset year with a sharper portfolio and well-oiled growth levers, will Honasa’s bet to be more than Mamaearth pay off? Let’s find out… 

From The Editor’s Desk

👣 Paytm Expands Global Footprint

• The fintech major’s cloud arm is setting up two wholly owned subsidiaries in Indonesia and Luxembourg to export its payments and fintech stack. It has allocated INR 25 Cr commitment each for the two entities. 
• Meanwhile, Abbar Global Opportunities will pick up a 49% stake in Paytm Arab Payments for about INR 18.7 Cr, leaving Paytm with 51% control.
• Paytm’s global push is built on top of its repaired domestic foundation. Post the RBI clampdown on its payments bank arm last year, the company spent the year securing multiple PA licences, shoring up margins and stabilising payments operations. 

🏪 Swiggy Instamart’s Offline Tryst 

• The quick commerce major has opened its first offline mini store in Gurugram. Modelled after its dark stores, the 400 sq ft outlet features 100-200 SKUs across fresh produce, grains and D2C brands. 
• The store is seller-owned and operated, with Swiggy only providing branding and other services. This outlet is a zero-capex pilot run by Instamart to test discovery and impulse purchases without committing to a full-scale retail rollout.
• The latest experiment comes as the quick commerce major’s losses ballooned 133% YoY to INR 739 Cr in Q2 FY26, while revenue grew 2X YoY to INR 980 Cr.

💰 PowerUp Money Nets $12 Mn

• The wealthtech startup has raised INR 107 Cr in its Series A round led by Peak XV Partners to launch a new “high-touch” AI-powered managed advisory offering. This comes just six months after PowerUp raised $7.1 Mn in its seed round.
• Founded in 2024, PowerUp offers a research-led, zero-commission mutual fund advisory platform. The startup claims to host 25,000 paid subscribers, generating around INR 2.5 Cr in annualised revenue.
• The funding comes amid a surging investor interest in wealthtech. While Wealthy Bag raised INR 130 Cr last month, Sahi is in talks to secure $30 Mn to $35 Mn in its Series B round at a valuation of over $200 Mn.

🏍️ Cautio Acquires BYTES

• The visual telematics startup has acquired BYTES to expand its safety platform beyond autos and cabs to the underserved two-wheeler segment. 
• The WTFund-backed BYTES leverages AI for real-time risk detection and ADAS, specifically designed for two-wheelers. On the other hand, Cautio provides AI dash cams that can detect critical driver behaviour like fatigue and overspeeding.
• The consolidation comes as India’s telematics market is projected to grow to $6.9 Bn by 2033, driven by regulatory push, fleet digitisation and rising safety consciousness. 

💊 Kriti Sanon Backs Supply6

• The D2C supplement brand has onboarded the Bollywood actor as both investor and brand ambassador. The partnership builds on a growing trend of celebrities taking equity stakes in early stage brands rather than just signing endorsement deals.
• Founded in 2019, Supply6 sells D2C supplements, zero-sugar electrolyte mix and protein wafers. Its three SKUs together bring in about INR 36 Cr in annual revenue via marketplaces and quick commerce platforms.
• Sanon follows other actors like Anushka Sharma (Blue Tribe), Alia Bhatt (Nykaa), and Ranveer Singh (boAt), who have also backed brands that align with their on-screen image and fan base.

Inc42 Markets

Inc42 Startup Spotlight

How Nyayanidhi Is Fixing Gaps In India’s Legal System

India’s legal system continues to choke under the backlog of 5 Cr pending cases. Besides, manual drafting slows everything down and leaves room for costly errors. Enter Nyayanidhi, a startup that wants to turn litigation into a fast, software-driven process.

AI-Led Litigation: Founded in 2024, Nyayanidhi is building an AI-driven operating system for litigation workflows, which are tailored for Indian courts and enterprises. By automating core tasks like documentation, translations and court filings, the platform generates ready-to-file drafts for lawyers.

Faster, Compliant Legal Work: Nyayanidhi pairs its automation layer with a curated network of specialist lawyers to ensure that speed does not come at the cost of compliance or accuracy. The idea is to offer standardised formats and faster response cycles, while sharply reducing the manual overhead that usually bogs down legal counsel.

Early Pilots: The startup claims to have already piloted its tech stack across multiple high courts and enterprise legal teams, processing thousands of cases through its system. With India’s legal tech space projected to become a $2.5 Bn opportunity by 2030, can Nyayanidhi scale accuracy fast enough to address India’s legal backlog?

Infographic Of The Day

Several new-age tech companies saw earnings pressure translate into tumbling share prices. Here’s how the markets reacted to loss-making startups this year.