IPO-Bound Mamaearth Profitable In First Six Months Of FY23

SUMMARY

Mamaearth recorded a restated profit after tax of INR 3.67 Cr in the first half of FY23, according to its DRHP

The IPO-bound D2C brand’s total income stood at INR 732.06 Cr during the first six months of FY23

The D2C startup posted a profit of INR 14.44 Cr in FY22, while total income stood at INR 952.4 Cr

Gurugram-based direct-to-consumer (D2C) brand Mamaearth, which filed its draft documents for an initial public offer (IPO) on Thursday (December 29), has been profitable in the first six months of the financial year 2022-23 (FY23).

According to the draft documents filed with the Securities and Exchange Board of India (SEBI), Mamaearth recorded a restated profit after tax of INR 3.67 Cr for the six months ended September 30, 2022.

It is prudent to mention that Mamaearth turned profitable in FY22, recording a profit of INR 19.8 Cr for the year ended March 31, 2022. The IPO-bound unicorn’s total income stood at INR 952.4 Cr during the year.

In the latest financial statements in the DRHP, the D2C brand’s profit after tax for FY22 was corrected to INR 14.44 Cr, slightly lower than what the IPO-bound startup reported a couple of months ago.

Mamaearth recorded a total income of INR 732.06 Cr during the first six months of FY23. Revenue from operations stood at INR 722.74 Cr. The startup gets most of its revenue from the sale of products.

The Gurugram-based D2C startup also recorded expenses of INR 722.94 Cr during the first six months of FY23.

Mamaearth, which turned unicorn in December 2021 after raising $52 Mn at a valuation of $1.2 Bn, became a public company last month before filing DRHP for IPO.

While there is no official timeline available for it to go public, media reports suggested that Mamaearth might launch its IPO in March 2023. The IPO consists of a fresh issue of shares worth INR 400 Cr and an offer for sale of 46.82 Mn shares.

Founded by Ghazal and Varun Alagh in 2016, the D2C brand competes with publicly listed Nykaa, unicorn Purplle, Plum Skincare, Juicy Chemistry and Wow Skin Science, among others, and offers personal care and baby care products.

Mamaearth is backed by Sequoia Capital, along with Sofina, Evolvence, Fireside Ventures, Stellaris Venture Partners and angel investors including Bollywood actress Shilpa Shetty Kundra and Snapdeal founder Kunal Bahl.

Except for Sequoia, most of the D2C brand’s investors are diluting their stakes in the upcoming IPO.