Mamaearth IPO: D2C Brand Eyeing Public Listing In November

Beauty ecommerce unicorn Mamaearth’s parent entity Honasa Consumer Ltd is reportedly mulling going public in November this year.

The startup plans to update its first-half results for FY24 after the closing of the July-September quarter and submit its red herring prospectus (RHP) to the Securities and Exchange Board of India (SEBI) by mid-October, The Arc reported citing sources.

As per the publication, Mamaearth has also started roadshows for the initial public offering (IPO) and is eyeing a valuation between INR 12,000-14,000 Cr.

Mamaearth filed its draft red herring prospectus (DRHP) in December last year. At the end of July this year, the startup received SEBI’s approval to float its IPO.

As per the DRHP, the IPO comprises a fresh issue of shares worth INR 400 Cr and an offer for sale (OFS) element of 46.82 Mn equity shares. 

Founded by the husband-wife duo Varun and Ghazal Alagh in 2016, Mamaearth started as a D2C baby care products brand. Gradually, it forayed into the beauty and personal care segment. It currently sells products ranging from makeup and hair care to body care.

Honasa also owns in-house brands including Aqualogica and The Derma Co, as well as Dr Sheth and BBlunt through acquisitions.

Mamaearth acquired parenting platform Momspresso in 2021. Amid a bid to improve profitability, it shut the Momspresso MyMoney platform due to its increasing losses.

Mamaearth turned profitable in FY22 with a standalone net profit of INR 19.8 Cr as against a net loss of INR 1,332.2 Cr in the previous year. 

Ahead of its IPO, the D2C unicorn was reportedly also looking to raise $120-$150 Mn in a new funding round at a valuation of $1.5 Bn. However, no such development has been confirmed by the company.

Besides Mamaearth, several other new-age startups, including OYO, GoDigit, and Navi, are likely to go public this year.

However, only two Indian startups have listed on the bourses this year amid investors’ increased focus on profitability. 

While drone maker ideaForge’s IPO saw an overwhelming response and its shares listed at a 94% premium to the issue price, Yudiz Solution listed at over a 12% premium on the NSE SME platform.