Fireside Ventures sells shares worth Rs 230 Cr in Mamaearth parent Honasa Consumer

Early-stage venture capital firm Fireside Ventures sold shares worth Rs 230.2 crore in Mamaearth parent Honasa Consumer, on Tuesday, in a bulk deal, according to data available with the National Stock Exchange.

The Bengaluru-based fund sold 60.88 lakh shares, or 1.9% stake in the company, at Rs 378 per share, booking a profit of more than 4500%.

The venture capital firm still holds over 1.81 crore shares or 5.5% stake in the company, as per media reports.

Fireside Ventures was one of Mamaearth’s earliest backers and had bought shares of the company at Rs 7.33 apiece.

Honasa Consumer—which went public last month—saw its pre-placement offer being subscribed 7.61 times on the final day of the book-building, with institutional investors providing the boost. 

The direct-to-consumer brand had aimed to raise Rs 1,701 crore through the IPO (initial public offering), which comprised consists of fresh issuance of shares worth Rs 365 crore and an offer for sale of 4.13 crore shares. Early investors, including Fireside Ventures, Stellaris Venture Partners, Sofina, Kunal Bahl, and Shilpa Shetty Kundra, are likely to make bumper returns by selling their stakes through the IPO.

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Speaking at TechSparks 2023 in Delhi last week, Titan Capital and Snapdeal Co-founder Kunal Bahl asserted that Honasa Consumer founders Varun Alagh and Ghazal Alagh, who took their company public in just seven years of starting up, would inspire entrepreneurs for generations to come.

The beauty and personal care firm aims to replicate Mamaearth's playbook with its other brands, including Aqualogica, The Derma Co., and BBlunt.

“When we launched Mamaearth, we spent a lot of time listening to the needs of consumers and had to give up some opportunities because we had just one brand with a specific focus. But now we have six brands, which have the capability to take on these opportunities,” Ghazal Alagh had told YourStory in an interview before the IPO.