Varun Alagh, co-founder of Honasa Consumer, has signaled strong confidence in his company by increasing his stake through a ₹50 crore block deal on December 29, 2025. This is unusual in Indian D2C news, as founders don’t often raise their ownership after a company is listed. It highlights Alagh’s belief in the brand’s future.
Regulatory filings show Alagh bought 18,51,851 shares, which is 0.57% of Honasa Consumer, for ₹270 each. This brought his total to 10.56 crore shares, or 32.45% of the company. Now, the combined holding of the promoter group is 35.54%, about 11.56 crore shares.
This move is a strong message for the D2C India market. While some founders raise their stake before an IPO, it’s rare after listing. Honasa Consumer joins a small group of listed D2C brands in India where the founder is backing the company with their own capital, instead of selling shares.
Honasa Consumer, known for its Mamaearth brand, has been changing its portfolio to keep up with D2C market trends in 2025. They recently expanded into men’s grooming by buying Reginald Men, a brand focused on South India. Honasa acquired 95% of BTM Ventures Pvt Ltd, Reginald Men’s parent company, for ₹195 crore. This shows Honasa is planning to grow into related personal care areas.
The company is also selectively investing in new D2C brands. In September 2025, Honasa purchased a 25% stake in Couch Commerce Private Limited, which owns Fang Oral Care, for up to ₹10 crore. These investments show a D2C India strategy focused on building a diverse portfolio and strong brands for the long term, not just seeking quick growth.
Strong financials have also boosted investor and founder confidence. In Q2 FY26, Honasa Consumer’s revenue grew by 16.5% year-on-year, reaching ₹538 crore from ₹462 crore in Q2 FY25. More importantly, the company became profitable, with a profit after tax of ₹39 crore, a big improvement from a loss of ₹18.56 crore in the same quarter last year. This is important because sustainable profits are now a key measure for listed consumer brands in the D2C industry.
Currently, Honasa Consumer’s stock is trading around ₹275 per share, giving it a market value of about ₹8,955 crore ($1 billion). In Indian D2C updates, Honasa is closely watched as it balances investments in its brands with efforts to improve its profit margins and operations.
Alagh’s increased stake sets Honasa apart from other startups like Lenskart and Meesho, where founders mostly changed their stakes before their IPOs. Even with reports of founders increasing holdings in companies like InMobi, Zetwerk, and Amagi before going public, Honasa’s move after its IPO is notable for when it happened and how large it was.
In conclusion, this ₹50 crore deal is more than just a financial move. It clearly shows that the founder believes in Honasa Consumer’s long-term potential. As D2C brands grow in 2025 and deal with public markets, Honasa’s path highlights how important it is for founders to be aligned with the company, expand in a disciplined way, and build strong brands in the D2C market in India.
