Mamaearth IPO news is all around the corner ever since the famous skincare and beauty brand announced that they’re putting the most anticipated IPO on hold.
The Indian skincare industry has been growing at a fast rate and the demand for natural, and organic skincare products is increasing rapidly. Awareness of harmful chemicals and toxins used in skin care products has turned consumers towards more natural and safer options. Many brands have come up with organic skincare products to cater to the needs of the people.
One such startup brand Mamaearth has gained massive attention and appreciation from netizens for its toxic-free and natural products in the cosmetics and skincare category for adults and babies. Mamaearth is one of the fastest-growing skincare brands in India giving tough competition to the top players in the industry.
The brand was about to go public but the parent company Honasa Consumer Ltd put Mamaearth’s Initial Public Offering (IPO) on hold for some reasons.
The Introduction of Mamaearth to the Indian Markets
Mamaearth is an Indian startup, founded in the year 2016 by the husband-wife duo Varun Alagh and Ghazal Alagh. Mamaearth is owned by the parent company Honasa Consumer Ltd, a firm that owns other D2C brands like The Derma Co, and BBlunt.
The current CEO of the company is Varun Alagh while Ghazal Alagh is the Chief Innovation Officer currently. Mamaearth is a Direct-to-Customer (D2C) brand that sells its products directly to consumers through e-commerce platforms.
The main motive of Varun and Ghazal coming up with Mamaearth in the Indian markets was to provide a chemical-free and safe skincare range of products for babies and adults. The products are specially curated for Indian skin types that serve every person’s skincare needs.
The products of Mamaearth are dermatologically tested. Their products go through various tests required to meet safety standards. All their products are FDA-approved and Made Safe certified. Mamaearth also became Asia’s 1st brand that get certified with MadeSafe.
Their range of products includes baby care, skin care, hair care, and cosmetics. The company offers a variety of innovative products like bamboo-based baby wipes, toothpaste made from natural plants, fennel designed for colic relief, and many more. The products that Mamaearth offer consists of natural ingredients like tea tree, ubtan, charcoal, vitamin C, argan oil, etc.
Mamaearth IPO News- Reason to Put IPO on Hold
Mamaearth had acquired quite a huge loyal customer base over the years. The company, looking for expansion decided to launch its IPO in 2022. The brand had already completed filing all the documents for launching its IPO last year but the parent company of Mamaearth, Honasa Consumer Ltd put the IPO on hold for the time being.
Honasa Consumer Ltd. was planning to raise almost 300-400 crores through Mamaearth’s initial public offering as per the Mamaearth IPO news. The company was also planning for an Offer For Sale (OFS) of 4.7 crore shares as per the documents from DRHP.
As per the reports, the reason behind Mamaearth’s initial public offering (IPO) currently being put on hold is the unfavorable market conditions. The company believes it is not the right time to go public amidst the poor performance of the Indian markets.
There were also reports that there were differences in the company’s valuation by the company and the potential investors which pushed the company to put its IPO listing on hold.
What Next?
Mamaearth is amongst the few startups that filed DRHP in recent times after achieving great success. The parent company filed the Draft Red Herring Prospectus (DRHP) with SEBI on 29th December for their IPO.
A representative from the company stated “We are still engaging with SEBI on our DRHP and awaiting formal approval for the same. Post the approval as is in line with the regulations we will have 12 months to file RHP and take the company public, which we will do in consultation with our bankers.”
When asked if the company will launch its IPO or not after hearing the Mamaearth IPO news, a company representative said, “As you are aware pricing and valuations will be discovered as part of our marketing roadshows as we start them. As discussed during our meeting neither is our largest investor selling a single share and also the promoters will continue to own over 97 percent of their ownership in the company after the IPO hence we have no interest in optimizing for short-term valuations, we are in this for the long term.”
Mamaearth’s Current Financials
Mamaearth became the first unicorn of the year 2022. It recorded its net revenue of Rs. 943 crores in the financial year 2022. Although the profit of the company came down by almost 50% at the same time the company’s net profit was 14 crores.
The company’s operating income was valued at Rs 722 crore in the first six months of the financial year 2023 and the company is supposed to generate higher revenue numbers than the financial year 2022, in the current year.
As more companies are coming up with toxic-free and natural products, the competition for Mamaearth is constantly rising. Well-established brands like Himalaya, Johnson & Johnson, and Unilever are some of the immediate rivals of the skincare company.
The Mamaearth IPO news certainly came as a bummer. It kind of comes across as a setback for the growth of the company and the interested investors indeed got unhappy after hearing about the delay.
The company is doing extremely well as of now and has tremendous growth potential. We hope that the Mamaearth IPO launches soon and the company touches new heights of success in the future!
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FAQs
Mamaearth products have been curated after doing thorough research and going through multiple attempts of making something that is organic and safe. The products are made from natural ingredients that are suitable for the skin of babies and grown-ups of all ages and different skin types. Their products are worth it!
Mamaearth is not yet listed in the stock market as of now. The company was planning to get listed through IPO in 2022. According to the Mamaearth IPO news, the Initial Public Offer of the company is currently put on hold. The company has delayed its listing due to poor market conditions.
Mamaearth was established in the year 2016 by Ghazal Alagh and Varun Alagh. The company is based in Gurugram, Haryana. The vision and mission of the company were to provide natural and harm-free products for babies.
The company started as a baby care products brand but later expanded its business and added personal care and cosmetics range of products for grown-ups of all ages as well.
The founder of Mamearth, Ghazal Alagh’s net worth is estimated to be somewhere between Rs. 140 to 150 crores. Being the founder and Chief Innovation Officer of Mamaearth and an active investor in other companies has helped Ghazal to build a massive net worth.
