Mamaearth competes with the likes of beauty marketplace platforms such as Plum, WoW Skin, The Moms Co, Biotique, Nykaa, Purplee, Good Glam et cetera, and traditional businesses such as VLCC, Vicco and more.
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New Delhi: There is little doubt that the market for initial public offering (IPO) will continue to attract investors in India who look for ways to make a quick profit. In the latest, Honasa Consumer Private Ltd, the parent firm of brands such as Mamaearth, The Derma Co, and BBlunt has filed draft papers with Sebi for listing to raise funds through a combination of a fresh issue and an offer-for-sale (OFS), reported Moneycontrol.
Honasa Consumer Private Limited became the first unicorn in India in 2022 during the very first week of January itself after it raised $52 million to reach a valuation of $1.2 billion in a fundraising round led by top VC firm Sequoia Capital. “Our flagship brand, Mamaearth has established itself as a leader in D2C personal care with a strong purpose of Goodness Inside. Looking at the scale of Mamaearth and the success of The Derma Co., we are confident that we have the expertise to build brands with a millennial connect,” Varun Alagh, Co-founder and CEO, Honasa Consumer Private Limited had said when the company attained unicorn status.
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HONASA CONSUMER PRIVATE LIMITED IPO: 10 KEY POINTS
- Varun Alagh and his wife Ghazal Alagh (of ‘Shark Tank India’ fame) together founded Honasa Consumer Private Limited, one of India’s fastest-growing D2C (direct to consumer) firm, that leads the beauty, babycare and skin markets, in 2016.
- As per draft red herring prospectus, the fresh issue of Honasa Consumer Private Limited, is up to Rs 400 crore and the OFS component by a clutch of external investors and individual shareholders is up to 46,819,635 equity shares, said Moneycontrol in its report.
- The Alagh couple, Sofina Ventures SA, Evolvence, Fireside Ventures, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, Bollywood actress Shilpa Shetty Kundra, Rishabh Harsh Mariwala and Rohit Kumar Bansal will be diluting their holdings, said the report, adding that Sequoia Capital is not participating in the OFS.
- “The combined size of the IPO could range between Rs 2,400 crore and Rs 3,000 crore, though the exact quantum at the time of listing would depend on final valuations … The plan is to launch the deal in March next year but that timeline is subject to market conditions ” said the report quoting sources.
- It also said that the net proceeds of the IPO will be used for advertisement expenses to improve brand visibility and awareness, setting up new exclusive brand outlets, investment in BBlunt for setting up new salons, general corporate purposes and inorganic growth.
- The investment banks working on the IPO are Kotak Mahindra Capital, JM Financial, Citi and JP Morgan, and Cyril Amarchand Mangaldas, Indus Law and Khaitan & Co are the legal advisors, as per the report.
- In the beginning of 2022, Honasa Consumer Private Ltd was catering its products to over 1000 Indian cities and it had become a billion-dollar personal care House of Brands in just five years.
- Mamaearth turned profitable in FY22, posting a net profit of INR 19.8 Cr on a standalone basis.
- Mamaearth competes with the likes of beauty marketplace platforms such as Plum, WoW Skin, The Moms Co, Biotique, Nykaa, Purplee, Good Glam et cetera, and traditional businesses such as VLCC, Vicco and more.
- “We are the largest digital-first BPC (beauty and personal care) company in India in terms of revenue from operations for the Financial Year 2022. We have a portfolio of six BPC brands with differentiated value propositions and as of September 30, 2022, our flagship brand, Mamaearth, has emerged as the fastest growing BPC brand in India to reach an annual revenue of Rs 10 billion (in the preceding 12 months) within six years of launch,” added Moneycontrol.
