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Mamaearth IPO – All You Need To Know About The D2C

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MamaEarth IPO | Price of MamaEarth IPO, Issue Date 2023
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On December 29th, Honasa Consumer Ltd, the parent company of India’s largest D2C brand Mamaearth, submitted the Draft Red Herring Prospectus (DRHP) to SEBI. This digital-first, sizable and fast-growing BPC house of brands’ valuations for the upcoming Mamaearth IPO was the talk of the town.

But before we delve into the intricacies of the IPO, let us take a quick look at the performance of IPOs launched over the last two years. The Indian stock exchanges, BSE and NSE, ranked 12th in the world regarding the number of IPOs until the second quarter of 2021. India was even cited as one of the few bright spots amid the bearish market sentiments the global slowdown caused.

Only three of the eleven startups that filed DRHP with SEBI in 2022 proceeded with their IPOs: Delhivery, Tracxn, and DroneAcharya. The remaining eight startups either abandoned their IPO plans, withdrew their DRHP, or their approval is still pending.

The majority of startups that went public in 2021 like Paytm, Policybazaar, and Nykaa have declined in the range of 25% to 75% post their listings on the bourses. Delhivery, the largest and the most profitable logistics company in India recorded a sharp correction and fell about 30% from its listing price.

Upcoming IPO in 2023

Look at the 2021-22 IPOs performance.

StartupListed OnGain/Loss from Listing Price (in %)
Car Trade.comAugust 2021-66.69
Fino Payments BankNovember 2021-60.76
Nazara TechnologiesMarch 2021-50.08
One 97 Communications LimitedNovember 2021-71.04
PB Fintech (Policy Bazaar)November 2021-48.67
Delhivery                           May 2022-28.35
Tracxn Technologies LimitedOctober 2022-4.09

With the overall market downturn wreaking havoc on startup IPOs in 2022, investor attention has shifted to the company’s fundamentals and market valuation. Considering these growing concerns and the poor track record of startup IPOs, the Mamaearth IPO could face difficulties.

Mamaearth IPO details

Mamaearth IPO comprises a fresh issue of shares worth Rs. 400 Cr and OFS worth Rs. 4.68 Crores. Promoters and a few investors holding equity shares or NCCCPs are selling their part/full stake in the company. 

IPO StatusNot Announced
IPO DateNot Announced
Total IPO SizeFresh issue – Rs. 400 cr and OFS – Rs. 4.68 cr
No. of Shares for IPONot Announced
Issue Price BandNot Announced
IPO listing atBSE and NSE
Face Value per Equity ShareRs. 10/-

Category-wise Shares Offered in Mamaearth IPO

Category% Offered
Qualified Institutional InvestorsMin: 75 %
Non-Institutional InvestorsMin: 15%
Retail InvestorsMax: 10%

Details of the Offer For Sale (OFS)

Name of the Selling ShareholderTypeWeighted Avg. Cost of Acquisition ( in Rs. per Equity Share)
Varun AlaghPromoterNegligible (< 0.01)
Ghazal AlaghPromoterNegligible (< 0.01)
Evolvence India Coinvest PCCInvestor173.64
Evolvence India Fund III LtdInvestor173.82
Fireside Ventures LtdInvestor7.33
StellarisOther Shareholder7.82
Kunal BahlOther Shareholder3.21
Rishabh Harsh MariwalaOther Shareholder6.05
Rohit Kumar BansalOther Shareholder3.21
Shilpa Shetty KundraOther Shareholder41.86
Source: DRHP

About the BPC floating the Mamaearth IPO

Mamaearth, India’s largest digital-first BPC, witnessed a massive uptick in e-commerce sales during the pandemic. It became the fastest-growing Beauty and Personal Care (BPC) brand, focusing on customer-centric innovation, brand building, and digital-first distribution. Within six years of its launch, it had reached an annual revenue of Rs. 1000 crores.

Varun Alagh and Ghazal Alagh founded Mamaearth in 2016 to produce natural or plant-based beauty and wellness products. Furthermore, the company manufactures baby skincare products that are certified safe for infants.

Mamaearth outsources all product manufacturing to 37 third-party manufacturers via contract-based agreements to sell them across multiple online and offline channels. Aside from a good traffic-driven online marketplace, the company has 35 Exclusive Brand Outlets (EBO) across India.

Shareholding Pattern of Mamaearth

image 56
Source: DRHP

Mamaearth Revenue Break-up

image 57

Key Business Offerings of Mamaearth

  • Mamaearth offers many toxin-free, natural, dermatologically safe, and convenient beauty products.
  • The Derma Co., launched in 202, under the flagship of Mamaearth, provides science-backed skin care products powered with active ingredients.
  • Acqualogica, launched by Mamaearth in 2021, provides a specialized skin care product range exclusively designed for Indian skin types.
  • The company launched Ayuga in 2021 to make Ayurvedic skin and hair care products in an easy-to-use format.
  • It acquired BBlunt, a brand that offers a professional salon-like experience at home, in 2021.
  • It acquired Dr. Sheith, a company that offers skin care solutions combining natural and active ingredients, in April 2022.
  • Acquired Mompresso in December 2021, a content-led platform that provides mothers with meaningful content to assist them in their journey of womanhood.

Financial Analysis of Mamaearth Company

Mamaearth’s focus on building thoughtfully designed and purpose-driven brands has helped it cultivate trust, brand resonance, and affinity amongst its consumers helping it to grow its business. According to a RedSeer report, Mamaearth has grown its revenue from operations at a stupendous CAGR of 193.15 % vis-a-vis the industry average of 13% for the same period.

Mamaearth is the BPC company with the highest DTC revenue, accounting for 52.37% of its total revenue for six months ending September 30th. Mamaearth was ranked second among digital-first BPC companies in India in FY 2021 ( 71.15 % for FY 2021) for gross profit margins. Its success was driven by a customer-centric, agile, technology-driven, and differentiated business model.

Mamaearth was one of only two digital-first BPC companies in India with a positive adjusted EBITDA margin (6.82%) in the fiscal year 2021. Its adjusted EBITDA has also increased over previous quarters.

(All figures in Crores)

 FY 2020FY 2021FY 2022
Total Assets181.01302.641035.01
EBITDA -431.71-1334.0311.46
Net Profit-428.03-1332.2219.98

The Strengths and Weaknesses of Mamaearth company


  • Mamaearth was the most searched Beauty and Personal Care Brand from January 2020 to November 2022.
  • The contribution of sales from new SKUs to revenue has increased over the years from 39.75% in FY 21 to 42.17 in FY 22.
  • It has brand-building capabilities with expertise in its existing domain and those it wishes to expand into.
  • Customer-centric product innovation and House of brands strategy
  • High focus on the Beauty and Personal care category.


  • Failing to identify and effectively respond to changing consumer preferences and spending patterns or changing beauty and personal care trends on time could affect product demand hurting the business performance.
  • Not maintaining brands and their reputation could also affect the business. High marketing spends at ~40% of revenue.
  • High Product concentration – top 10 products contribute 30% of revenue, and the top 2 contribute 13%
  • Rapidly scaling offline channel presence
  • Competition with new brands and existing players entering similar categories

The Objective of Mamaearth IPO

Mamaearth IPO is envisaged to bring in a pool of funds to acquire new customers, increase the share of repeat orders, and cross-sell new products to existing customers. Mamaearth proposes to utilize the Mamaearth IPO funds towards the following objectives-

PurposeEstimated Amount (in crores)
Advertisement to increase Brand visibility186
Capital Expenditure toward setting up new Exclusive Brand Outlets (EBOs)34.23
Investment in BBlunt to set up new salons27.52
Other general purpose and unidentified Inorganic acquisitionWill be determined after finalizing offer price.
Source: DRHP

Should You Buy Mamaearth IPO or let it pass?

BPC products in India are expected to grow at 12% CAGR to $ 30 million in 2026. In view of the potential of this industry, Mamaearth IPO may arouse investor sentiment. Predicting whether the IPO will be successful or not is too difficult. However, you must thoroughly research before you decide.


When is Mamaearth IPO expected to be listed on the stock markets?

The final dates are not yet finalized

What will be the share price of Mamaearth IPO?

Yet to be declared.

Read more: About Research and Ranking

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