Honasa Consumer

Expand distribution and brand awareness

Incubate or acquire new engines of growth

Strengthen business efficiency drivers

Strengthen our technology and data capabilities to drive business efficiencies.

Strengthen business efficiency drivers.

Optimize channel mix for our flagship brand, Mamaearth.

Drive scale benefits from core business.

Strengthen our technology and data capabilities to drive business efficiencies.

Brand building capabilities and repeatable playbooks.

Customer centric product innovation.

Digital-first omnichannel distribution.

Data driven contextualised marketing.

Ability to drive growth and profitability in a capital efficient manner.

Founder led company with a strong professional management.

If the company is fail to identify and effectively respond to changing consumer preferences and spending patterns or changing beauty and personal care trends in a timely manner, the demand for its products could decrease, causing the company business, results of operations, financial condition and cash flows to be adversely affected.

The company brands and reputation are critical to the success of its business and may be adversely affected due to various reasons, which could have an adverse effect on the company business, financial condition, cash flows and results of operations.

The launch of new brands or products that prove to be unsuccessful could affect its growth plans which could adversely affect the company business, financial condition, cash flows and results of operations.

The compan is derives a significant amount of revenue from a limited number of products. Any decrease in the sales of its key products will adversely affect the company business, cash flows, financial condition and results of operations.

The company dependence on third-party manufacturers for all its products subjects the compnay to risks, which, if realized, could adversely affect its business, results of operations, cash flows and financial condition.

Its may be subject to unfair competitive or trade practices, which may reduce the company sales and harm its brands, adversely affecting its business, financial condition, cash flows and results of operations.

Product liability claims and product recalls could harm its reputation, business, financial condition, cash flows and results of operations.

If the company is unable to identify consumer demand accurately and maintain an optimal level of inventory, its business, results of operations, cash flows and financial condition may be adversely affected.

Reliance on celebrities and social media influencers as part of its marketing strategy may adversely affect the company business and demand for its services.

The company relies on its relationships with certain marketplaces and web traffic drivers for sales through the company online channel.

The company inability to effectively manage or expand its offline sales network may have an adverse effect on the company business, results of operations, cash flows and financial condition.

The company is dependent on several third party service providers to sell or distribute its products to consumer, and on third party technology providers for certain aspects of its operations. Any disruptions or inefficiencies in these operations may adversely affect its business, financial condition, cash flows and results of operations.

The company historical performance is not indicative of its future growth or financial results and its may not be able to sustain the company historical growth rates.

The company technology infrastructure and the technology infrastructure of its third-party providers are susceptible to security breaches and cyberattacks.

The Company has issued Equity Shares during the preceding one year at a price that may be below the Offer Price and grants of stock options under its ESOP 2018 and ESOP 2021 may result in a charge to the company profit and loss account and, to that extent, reduce its profitability and adversely affect the company financial condition.

The company face intense competition which may lead to a reduction in its market share, cause it to increase the company expenditure on marketing and promotion as well as cause it to offer discounts, which may result in an adverse effect on the company business and a decline in its profitability.

The company may not be able to adequately protect its intellectual property, which may result in the inability to prevent its competitors from developing, using or commercializing products that are functionally equivalent or similar to its products.

The Auditor`s report on internal financial controls issued on its standalone financial statements for the Financial Year 2020 contains a disclaimer of opinion relating to the Auditors` inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.

The success of its business depends substantially on its management team and operational workforce. its inability to retain them could adversely affect the company businesses.

The company may not be able to successfully identify and conclude acquisitions, or manage the integration of or harness synergies from acquired businesses, or the performance of such acquired businesses may be below its expectations, any of which may adversely affect the company business, results of operations, cash flows and financial condition.

The company has experienced negative cash flows from operating, investing and financing activities in the past.

The locations of its EBOs may become unattractive, and suitable new locations may not be available for a reasonable price. In addition, the company is exposed to all of the risks associated with leasing real estate and any adverse developments could affect its business, results of operations, cash flows and financial condition.

The company is subject to payment-related risks, including risks associated with cash on delivery and payment processing risks.

Any international expansion efforts may expose it to complex management, legal, tax and economic risks, which could adversely affect the company business, financial condition, cash flows and results of operations.

There is outstanding litigation pending against the company and its Subsidiaries which, if determined adversely, could affect its business, results of operations, cash flows and financial condition.

The audit reports on its Special Purpose Ind AS standalone financial statements as at and for the Financial Years 2021 and 2020 contain emphasis of matter paragraphs.

In this Draft Red Herring Prospectus, the company has compared consolidated financial information as of and for the year ended March 31, 2022 with its standalone financial information as of and for the year ended March 31, 2021 and for the year ended March 31, 2020. These periods are not comparable to each other.

The company relies on its information technology systems in managing the company supply chain, logistics and other integral parts of its business. Any failure in the company information technology systems could adversely affect its financial condition, cash flows and results of operations.

The company warehousing operations are being conducted on premises that have been taken on lease. Any difficulty in seeking renewal or extension of such lease terms may cause disruption in its operations.

The company`s business depends on its ability to maintain and scale its technology. Any interruptions or delays in service on the company websites or mobile applications or any undetected errors or design faults could result in limited capacity, reduced demand, processing delays, and loss of consumers, suppliers or sellers.

Environmental, health, employee and safety laws and regulations may expose it to liability and result in an increase of the company costs and a decrease in its profits.

The company`s business depends upon the user behavior, growth of online commerce industry in India and continued acceptance of digital platforms.

The company appoint contract labor for carrying out certain of its operations and its may be held responsible for paying the wages of such workers if the independent contractors through whom such workers are hired default on their obligations, and such obligations could have an adverse effect on its cash flows and results of operations.

The company culture and values have been critical to its success and if the company cannot maintain this culture and its values as the company grow, its business and reputation could be adversely affected.

The company may not be successful in implementing its business strategies.

The company has recorded losses in the past. Any losses in the future may adversely impact its business and the value of the Equity Shares.

The company has contingent liabilities and its financial condition could be adversely affected if these contingent liabilities materialize.

The company may requires additional financing in the form of debt or equity to meet its business requirements.

The company may not be sufficiently protected or insured for certain losses that its may incur or claims that the company may face against it.

The company requires certain approvals and licenses in the ordinary course of business, and the failure to obtain or retain them in a timely manner all may adversely affect its operations.

The company online marketing listings or reviews may constitute internet advertisement, which subjects it to laws, rules and regulations applicable to advertising.

The company track certain operational and key business metrics with internal systems and tools. Certain of its operational metrics are subject to inherent challenges in measurement which may adversely affect its business and reputation.

The company does not own its Registered and Corporate Offices.

The company Promoters will continue to retain significant shareholding in its after this Offer, which will allow them to exercise significant influence over the company and any substantial change in its Promoters` shareholding may have an impact on the trading price of its Equity Shares which could have an adverse effect on the company business, financial condition, results of operations and cash flows.

The company Promoters, Directors and Key Management Personnel may have interests other than reimbursement of expenses incurred and receipt of remuneration or benefits from the Company. Certain of its Promoters and Directors may have interest in entities, which are in businesses similar to its and this may result in conflict of interest with the company.

This Draft Red Herring Prospectus contains information from third parties, including an industry report prepared by an independent third-party research agency, RedSeer Management Consulting Private Limited (RedSeer), which the company has commissioned and paid for purposes of confirming its understanding of the industry exclusively in connection with the Offer.

The company has entered into, and will continue to enter into related party transactions. The company cannot assure you that such transactions, individuals or in the aggregate, will not have an adverse effect on its business, financial condition, cash flows and results of operations.