The company plans to go public in 2023 and will shortly submit its draught red herring prospectus (DRHP). Mamaearth, a Gurugram-based direct-to-consumer (D2C) babycare and skincare startup, recently went public as part of its preparations for an initial public offering (IPO).
(1). The company plans to go public in 2023 and will shortly submit its draught red herring prospectus (DRHP). According to the records submitted, Mamaearth’s parent company has changed from Honasa Consumer Private Limited to Honasa Consumer Limited.
For those unfamiliar with the procedure, the first step toward a public listing is to convert the company’s status from private to public. The company will next submit a DRHP to the Securities Exchange Board of India, outlining the amount of money it plans to raise, how the funds will be used, and the health of the company’s finances.
The First Profit
Mamaearth, led by husband-and-wife duo Ghazal (2) and Varun Alagh (3), made a profit in fiscal year 22, netting Rs. 19.8 Cr. In FY21, it recorded a net loss of Rs. 1,332.2 Cr. Its operating income climbed twice as much as the previous year (YoY), reaching RS. 931 Cr, while its costs were reduced by almost half to RS. 924.6 Cr.
Soon after its inception in 2016, the company started selling baby care products, but it swiftly moved into the beauty and skincare sectors. The D2C house of brands officially became a unicorn after it earned $38 million in its Series F round of fundraising at the end of December 2021.
Some of the most well-known names in venture capital have invested in Mamaearth, including Sequoia India, Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala, the Snapdeal founders Kunal Bahl and Rohit Bansal, and actress Shilpa Shetty Kundra, among others. It competes with beauty marketplace platforms like Plum, WoW Skin, The Moms Co, and Biotique, as well as established companies like VLCC, Vicco, and many more.
According to reports citing inside sources, a potential public listing might happen as soon as July 2023.
However, as part of its three-year strategy, the D2C company has previously maintained its stance of listing on public bourses. But it may be more complex.
Mamaearth is an omnichannel retailer with operations throughout Southeast Asia. The company earns around 70% of its income from internet channels, with the other 30% coming through physical partners. Several brands the company has bought or created in-house are included in its portfolio. Mamaearth, an e-commerce company, is planning an initial public offering (IPO). Nonetheless, several other e-commerce companies planning to go public have abandoned their plans or blamed bad market circumstances.
Snapdeal, for example, filed its DRHP in December of the previous year, but there still needs to be word on the company’s IPO chances. BoAt, a D2C firm, has abandoned its intentions to go public in favor of raising funds via an equity round, which may indicate that the company has abandoned its IPO plans more than once.
The sole listed platform in the e-commerce sector is Nykaa, a rival of Mamaearth’s. Although it was successfully listed, the platform could have done better on the bourses once it was there.
There is widespread concern about possibly hazardous compounds in the most popular personal care and baby care products in the United States. While Ghazal was there, she became more conscious of the products she was using and started to scrutinise the ingredient label before buying any newborn care item.
Varun and Ghazal were living in India when they discovered they were expecting their first child. During their pregnancy, they realized that the baby care products in India contained deadly chemicals and that there were no safer alternatives.
After being unable to find any baby products acceptable in India, the husband and wife team stopped using products created in India. Instead, it began importing trustworthy goods made in other countries. They then started ordering items from the United States, which proved to be a costly and cumbersome arrangement. Furthermore, they knew that it wasn’t just them; in reality, far too many parents in India face the same issue.
This insight let them realize that it wasn’t only them. However, since there were no clear alternatives then, Varun and Ghazal Alagh started researching ways to make these newborn goods safer and less expensive. They formed a research and development team and applied for the necessary certifications during that period. All of these events culminated in the foundation of Mamaearth. It quickly became Asia’s first brand to provide “MADE SAFE” certified products.
(4) These products were devoid of toxins and brimming with the natural goodness that infants and young children greatly deserve. Mamaearth has formed with an initial investment of around Rs. 90 lahks from personal cash provided by Varun and Ghazal. The Seed investment followed this in 2016.
Specialization of MamaEarth
Mamaearth is a company that focuses on both babies and other adults. It features a product line that includes more than 80 natural items and caters to baby care, hair care, skincare, and other areas of concern.
Mamaearth is responsible for developing various innovative products, including India’s first bamboo baby wipes, an easy stomach roll-on with asafoetida and fennel to alleviate colic and digestion, and a 100% natural plant-based toothpaste for children aged one to ten years.
Furthermore, it provides a range of hair and skin care products based on well-known naturally occurring ingredients such as onion, ubtan, tea tree, vitamin C, argan, cocoa, and charcoal. It has widened its reach to assist babies and their mothers, providing a range of things such as sunscreen and stretch mark serum. It looks at parenthood from every possible viewpoint. Customers rave about their onion-flavored products for moms.