Honasa Consumer Limited, the name behind beloved skincare label Mamaearth, has once again stirred the pot—this time with a fresh wave of stock options that scream more than just balance sheets and boardroom nods. On June 18, in a move passed via circular resolution, Honasa’s Nomination and Remuneration Committee rolled out 53,322 employee stock options under its 2018 equity incentive program. These aren’t just numbers; they’re votes of confidence. Each option? Worth Rs 10 a pop, mirroring the face value—yes, at par. A subtle nudge that says: “We trust you.”
Now, peel that back against the current market backdrop. With Honasa trading around Rs 304.90 on the NSE and even opening at Rs 308 the day after the news dropped, the arithmetic is obvious. This isn’t a mere HR tactic—it’s a Rs 1.6 crore equity statement.
But here’s the thing: none of these options are ripe yet. No vesting, no exercises, and no drop-offs. Not yet. They’re seeds, not fruit. What makes this batch notable, though, is its context. Just this April, Honasa consumer handed out a whopping 24.16 lakh options. In January? Another 45,663. This isn’t episodic generosity—it’s a rhythm.
Amid these internal shifts, there’s external evolution too. Leadership chairs have been moving. Yatish Bhargava stepped in recently as Chief Business Officer, succeeding Zairus Master. The message from the top is loud and clear: grow smart, grow fast, and reward those who ride the wave.
1. Background of Honasa Consumer Limited
1.1 The Rise of Mamaearth and Honasa
Born in 2016 from the real, raw parenting journey of Varun and Ghazal Alagh, Honasa wasn’t built on buzzwords. It started because Indian parents had no idea what they were putting on their baby’s skin. Mamaearth wasn’t just another brand—it became a mission. Toxin-free. Honest. Desi yet global.
Soon, Mamaearth became more than a product line—it became a promise. And Honasa? It didn’t stop there. With strategic brand additions like The Derma Co, Aqualogica, BBlunt, and Dr Sheth’s, they didn’t just enter markets—they made new rules.
1.2 Revenue and Business Model
What fuels this rocket ship? A tight blend of product obsession and tech-smart execution. Honasa’s omnichannel play hits shelves and screens alike—online marketplaces, standalone stores, and even kiranas.
Revenue isn’t a mystery either. Mamaearth alone has become a powerhouse, pushing the company past the Rs 1,000 crore milestone in FY2023. That’s not just growth—it’s scale.
2. Deep Dive into the Latest ESOP Grant
2.1 Why the New Grant Matters
When Honasa Consumer grants 53,322 stock options, it isn’t a one-off. It’s layered. Employees aren’t just workers here—they’re co-riders on a bold mission. With an exercise price set at Rs 10 versus a market price soaring over Rs 300, this is wealth-building at its core.
In the cutthroat world of Indian startups, this kind of equity distribution isn’t charity. It’s a strategy. Startups poach. Markets churn. But ESOPs? They anchor. They matter.
2.2 Past Grants Show a Consistent Strategy
Flip back a few months, and you’ll see a pattern. April saw 24.16 lakh options granted. January added 45,663. Not scattershot decisions—but a system. A rhythm. This is Honasa’s way of building a people-first culture with real skin in the game.
3. Honasa’s Business Strategy: Omnichannel and Digital-first
3.1 A Modern Business Framework
Honasa doesn’t play by the old FMCG script. It blends the tried-and-true with the new-and-now. Offline shelves? Check. Online dominance? Absolutely. Influencer campaigns? You bet.
With India’s personal care sector heading toward Rs 2.6 lakh crore by 2028, Honasa’s mix of online reach and offline depth is perfectly timed. It’s not about being everywhere—it’s about being right there when customers need it.
3.2 Tech-Driven Personalisation
While legacy giants are still figuring out how to go digital, Honasa’s already leveraging AI to recommend the perfect face serum for your oily summer skin. Brands like The Derma Co. use machine learning to personalise skincare. The result? Loyalty that algorithms help deepen.
4. Founders and Key Leadership
4.1 Varun and Ghazal Alagh
The Alaghs weren’t playing startup bingo. Varun brought hard-knock FMCG grit from Hindustan Unilever. Ghazal brought clarity and empathy, rooted in a real parent’s concern. Together, they turned Mamaearth into something that felt honest, Indian, and fresh.
4.2 Leadership Evolution
With Zairus Master stepping down earlier this year, the baton passed to Yatish Bhargava. But this wasn’t just a job swap—it was a recalibration. The brand’s gearing up for category dominance, sales expansion, and retail evolution. Change is not just welcome—it’s necessary.
5. Funding History and Investor Confidence
5.1 Funding Rounds
This isn’t a bootstrapped fairy tale. Honasa is derived from names that matter—Sequoia, Sofina, Evolvence. The backing wasn’t blind faith. It was a belief backed by product-market fit and killer execution.
5.2 IPO and Market Listing
In November 2023, Honasa rang the bell. Its IPO wasn’t just subscribed—it was oversubscribed 7.6 times. That’s not just capital—it’s conviction.
6. Problems Solved by Honasa
6.1 Toxin-Free and Transparent Skincare
Back in 2016, finding a genuinely toxin-free shampoo for your kid felt like hunting unicorns. Honasa changed that. They didn’t just sell clean products—they built a movement around conscious skincare.
6.2 Local Innovation
Too many brands copy-paste from the West. Not Honasa. It designs products for Indian humidity, pollution, and skin tones. The sustainability angle isn’t a tagline—it’s a task they’ve taken seriously with biodegradable packaging and cruelty-free practices.
7. Industry Trends and Market Growth
7.1 Skincare Boom in India
The self-care wave isn’t a fad. Indians are spending more on wellness, with skincare becoming a daily ritual instead of an occasional splurge. The sector’s growing fast, and players like Honasa are perfectly positioned.
7.2 D2C Ecosystem Evolution
D2C in India isn’t new, but what Honasa has done is push the bar. It skipped middlemen, scaled via social media, and turned customer feedback into product pivots. It’s the playbook others now study.
8. Competitor Landscape
8.1 Direct Competitors
Honasa’s is in the same league as Plum, WOW Skin Science, and mCaffeine. Clean, young brands with digital blood and cult products. But Mamaearth’s lead? It’s brand trust and depth.
8.2 Traditional Rivals
HUL, Dabur, Emami—they’re awake now. But agility isn’t something you can manufacture overnight. Honasa’s nimble, and in digital that makes all the difference.
9. ESOP as a Strategic Tool
9.1 Talent Retention
Startups bleed talent unless they anchor it. Honasa Consumer grants 53,322 stock options not just to reward but to bind. It’s a strategic handshake between management and employees: we rise together.
9.2 Aligning Interests
When your employee is also a shareholder, your interests align. That’s the kind of glue that keeps companies together even when the market shakes.
10. Learning for Startups and Entrepreneurs
What can you steal—ethically—from Honasa’s playbook? Prioritise your people. Put purpose before polish. Use ESOPs smartly. Think omnichannel from day one. And always, always solve a real problem.
Their growth isn’t just smart—it’s soulful. There’s heart in their hustle. That’s the kind of startup DNA that doesn’t just scale—it sticks.
11. The Startups News
At TheStartupsNews.com, we live to tell stories like Honasa’s. Tales where purpose meets execution, and where founders turn daily frustration into multi-crore enterprises. Whether you’re building a skincare label, an AI tool, or a clean energy venture, our mission is to bring you insights that fuel your next bold move. Behind every headline is a founder who dared. And behind every pivot? A story worth telling.
