Honasa Consumer, the parent of Mamaearth, has made a decisive push into India’s fast-growing men’s personal care segment with the acquisition of BTM Ventures, owner of premium grooming brand Reginald Men. The deal, announced Thursday, values the company at Rs 195 crore and marks Honasa’s most direct foray into a category it has so far approached only through adjacent offerings.
Under the agreement, Honasa will purchase 95% of BTM Ventures upfront in cash. The remaining 5% will be acquired after 12 months, subject to pre-agreed valuation terms.
A bet on a rapidly expanding category
Founded in August 2022 by Trisha Reddy Talasani, Reginald Men has built a niche around premium sunscreen and serum products. The brand has grown rapidly, reporting a trailing twelve-month revenue of about Rs 74 crore and EBITDA margins around 24%. Nearly 80% of its sales come from South India, an area where Honasa has been seeking deeper penetration.
Honasa said the acquisition gives it a stronger position in a Rs 20,000 crore men’s grooming market that is projected to double by 2032. The company believes Reginald Men can be scaled through new categories, wider distribution and national expansion.
“We are deeply inspired by what the Reginald Men team has built in such a short span,” Honasa co-founder and CEO Varun Alagh said in the exchange filing. “Their understanding of the modern male consumer aligns perfectly with Honasa’s long-term vision.”
Reginald Men founder Trisha Reddy Talasani called the deal a “landmark moment,” adding that the partnership would help accelerate the brand’s ambitions.
Financial metrics show a premium valuation
The Rs 195 crore enterprise value implies an EV-to-revenue multiple of 2.6x and an EV-to-EBITDA multiple of 10.9x, based on the brand’s current performance. Reginald Men recorded about Rs 20.1 crore in revenue in FY25 so far and roughly Rs 40,000 in FY24. The company has demonstrated strong gross margins of 72%, supported by its premium positioning and concentrated product portfolio.
Brokerages offered a mixed response. HSBC said the deal shows intent, but Honasa still needs to prove it can scale its core brands steadily. JPMorgan, in its report, said the acquisition will be funded through internal accruals and should lift EBITDA, but warned that taking a largely D2C brand national in a crowded category will be challenging. CLSA was more upbeat and stated that the deal strengthens Honasa’s position in South India and fits well with its portfolio.
Honasa’s Q2 performance
The acquisition comes as Honasa reports improved financial results for the September quarter. The company posted a net profit of Rs 39 crore, reversing a Rs 18.5 crore loss a year earlier. Revenue rose 16.5% year-on-year to Rs 538 crore, while EBITDA swung to a positive Rs 47.5 crore from a loss of Rs 30.7 crore in the same quarter last year.
Honasa has also continued expanding through strategic bets. During the September quarter, it picked up a 25% stake in Couch Commerce Pvt. Ltd., maker of the Fang Oral Care brand, for up to Rs 10 crore.
The company currently reaches customers across 700 districts and operates through more than 1 lakh FMCG retail outlets, backed by a distribution network spanning 18,000 pin codes.
Market reaction
Honasa Consumer’s share price has risen 3.5% to an intra-day high of Rs 269 per share . However, the skincare firm’s shares have fallen 4.5% in the past five trading sessions. It has declined 6.6% over the previous one month and 15.6% in the last six months.
The stock has raised investors’ worth by 5% in the past one year. Currently, the stock is trading at a discount of 22.3% to the listing price of Rs 330.
With men’s grooming expected to double over the next decade, Honasa is in a bid to position itself early, hoping its distribution muscle and consumer insight capabilities can turn Reginald Men into a national brand.