Honasa Consumer will invest Rs 10 crore for a 25% stake in Couch Commerce. The investment will be done through compulsorily convertible preference shares (CCPS).
Honasa Consumer, the parent company of personal care brandMamaearth, and The Derma Co., will acquire a 25% stake in Couch Commerce for Rs 10 crore, according to an exchange filing on Wednesday.
The company’s board approved the proposal to invest in Couch Commerce via compulsorily convertible preference shares (CCPS). Couch Commerce sells toothpaste and teeth whitening products under the oral care brand Fang Oral. The deal is expected to close within four weeks from now.
The deal would support “expansion of addressable market through early-stage investments in sizeable/fast-growing categories,” Honasa Consumer told the exchanges.
Incorporated in 2015, Mumbai-based Couch Commerce logged a revenue of Rs 3.14 crore for the financial year ended March 2025, up from Rs 70 lakh in the previous fiscal. The company posted an annual revenue run rate (ARR) of Rs 7 crore in the current financial year, based on net sales value in September 2025.
Honasa reported strong September quarter numbers today, with performance in focus categories and product innovation driving topline and bottom-line growth. It reported a 16% year-on-year (YoY) increase in operating revenue to Rs 538 crore. Net profit stood at Rs 39 crore, compared to a loss of Rs 18 crore a year ago. Sequentially, profit dropped 5% from Rs 41 crore in the April-June period.
Total expenses during the quarter under review were flat at Rs 505 crore, with the purchase of traded goods (Rs 158 crore), employee benefit expenses (Rs 60 crore), and other expenses (Rs 272 crore) accounting for a substantial portion.
“This quarter brought category wins, with Mamaearth back in green. The Derma Co. crossed the Rs 750 crore ARR milestone,” cofounder and CEO Varun Alagh said, noting that innovation continued to be a key growth driver.
According to the company, its focus categories, which include face wash, shampoo, sunscreen, moisturiser, and baby care, now contribute over 75% of its revenues across online and offline channels.
Source: www.economictimes.indiatimes.com