Honasa Consumer Acquires 25% Stake in Couch Commerce for ₹9.99 Crores
Honasa Consumer has completed the acquisition of approximately 25% stake in Couch Commerce Private Limited for ₹9.99 crores. The investment was made through convertible preference shares, allowing Honasa Consumer to diversify its portfolio and establish a partnership in the commerce sector while maintaining potential upside participation and preferential rights.
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Honasa Consumer has completed the acquisition of approximately 25% stake in Couch Commerce Private Limited, investing ₹9.99 crores in the transaction. The investment has been structured through convertible preference shares.
Investment Details
The key parameters of this strategic acquisition are outlined below:
| Parameter | Details |
|---|---|
| Investment Amount | ₹9.99 crores |
| Stake Acquired | Approximately 25% |
| Investment Structure | Convertible Preference Shares |
| Target Company | Couch Commerce Private Limited |
Strategic Implications
The acquisition represents Honasa Consumer's move to diversify its business portfolio and establish partnerships within the commerce sector. The use of convertible preference shares provides the company with potential upside participation while maintaining preferential rights in the investment structure.
The investment in Couch Commerce Private Limited aligns with Honasa Consumer's growth strategy and expansion into complementary business areas. The minority stake acquisition allows the company to participate in the target entity's growth while maintaining operational independence for both organizations.
Transaction Structure
The convertible preference share structure offers several advantages for both parties involved in the transaction. This investment vehicle provides Honasa Consumer with preferential rights while offering potential conversion opportunities based on predetermined conditions.
The ₹9.99 crore investment demonstrates Honasa Consumer's commitment to strategic partnerships and its interest in Couch Commerce Private Limited's business potential.
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