D2C Unicorn Mamaearth Allots Bonus Shares Worth $17.4 Mn To Investors, Founders

D2C beautycare unicorn Mamaearth is allotting 136 Mn equity shares as bonus shares to its 12 investors, including founders. The Gurugram-based D2C brand, in a meeting held earlier this month, decided to allot bonus equity shares in the ratio of 1:12,899, meaning it would allot 12,899 equity shares to investors and founders for every equity share held by them. 

The total worth of the allotted bonus shares would be $17.4 Mn (INR 136.03 Cr). Founder Varun Alagh would receive 106.8 Mn bonus shares for holding a total of 8,282 equity shares. Cofounder Ghazal Alagh would receive 10 Mn bonus shares for holding 788 equity shares. Among investors, Sequoia Capital would receive 8 Mn bonus shares for holding 621 equity shares, followed by Sofina Ventures, which would receive 3.3 Mn bonus shares for holding 256 equity shares. 

Evolvence India, Stellaris Ventures, Fireside Ventures, and Shilpa Shetty Kundra are among other investors who would receive bonus equity shares. 

The development comes almost five months after Mamaearth entered the unicorn club after raising $52 Mn at a valuation of over $1 Bn. The round was led by Mamaearth’s biggest investor, Sequoia Capital. Sofina Ventures and Evolvence also participated in the round. 

The funding round helped its early investors such as Fireside Ventures and Stellaris Partners partially exit the startup. 

Founded in 2016 by Ghazal and Varun, Mamaearth started with selling baby care products but gradually moved on to become a complete personal care brand.

The startup offers a wide range of products ranging from hair and face products to body products, among others. It claims that its products are dermatologically tested and are FDA approved. It also claims that the products are ‘Made Safe’ Certified. 

In February, Mamaearth acquired hair color brand BBBlunt from Godrej Consumers for around INR 134 Cr. As part of the deal, Honasa Consumer, the parent company of Mamaearth, was to acquire all salons operated by BBBlunt under the ‘Bhabani Blunt Hair Dressing’ name. 

Mamearth had earlier acquired women-focused content platform Momspresso and its influencer engagement platform Momspresso MyMoney. 

As per media reports, Mamaearth is eyeing an IPO in the next 12 to 15 months. 

The startup incurred a total loss of INR 24.5 Cr in financial year 2020-21, while its revenue from sales stood at INR 460.8 Cr. Its total expenses stood at INR 435.6 Cr during the year.