Mamaearth ipo

Direct to consumer (D2C) skincare and beauty brand MamaEarth is weighing options to go public in the next 12-15 months, said two people aware of the plan. While the company in the past maintained that IPO is two to three years away, the people cited above said that internal discussions have been going on for a potential public listing in FY24 for the past couple of months. “Several rounds of discussions centered around the IPO took place in the past few weeks and there is a broader consensus that MamaEarth will go public by June-July 2023,” said one of the people requesting anonymity. According to these people, MamaEarth is set to pitch IPO plans to the company’s board of directors. “Sequoia, Sofina and other backers are likely to give a green signal to IPO as the company’s bottom line is strong and profitable,” said the person quoted above. Despite the pandemic, MamaEarth had grown at a scorching pace in the fiscal year ending March 2021 and also turned profitable. According to Fintrackr , the Bengaluru-based firm’s operating revenue “MamaEarth’s financial performance is stronger than most of the consumer internet companies who are queued up for public listings,” said the second person who also requested not to be named. “The company has ended FY22 with close to Rs 1,000 crore revenue and has set a target to post Rs 1,800-2,000 crore topline for this fiscal year [FY23].” Queries sent to MamaEarth, Sequoia and Sofina didn’t elicit any immediate response. We will update the...

Ghazal Alagh and Varun Alagh, founders, Mamaearth; credit: ET Tech Synopsis Call it due to too much ‘armchair analysis’ but the damage to Mamaearth’s brand image before its IPO has been done. Ghazal Alagh responded on behalf of Mamaearth on the ‘astronomical valuations’ chatter but was it too late? Nevertheless, it has left many questions for the company, the market fraternity on social media, and for other companies planning to list. Can a group of people gang up on social media and derail an IPO? Three years ago, most of us would have answered this in the negative. But these are different times. US gaming retailer Gamestop’s case — where retail investors came together through Reddit and other platforms to create a short squeeze that led to losses for a hedge fund — was a precursor to what social media can do to stock prices for small and upstart companies. If you think that

Mamaearth parent Honasa Consumer had filed IPO papers in December to raise about $200 million to $300 million, through the issuing of new equity and an offer for the sale of some existing shares. While reports said Mamaearth is planning to seek a valuation of up to $3 billion, the unicorn's co-founder Ghazal Alagh had earlier issued a denial saying they do not subscribe to the valuation numbers which are getting mentioned in the media. The company has until December to receive approval for the IPO from the Securities and Exchange Board of India (SEBI) and file its final prospectus. It still plans to list, but with a delay, the report said. It may reevaluate market conditions and start its marketing process by October if the sentiment improves, it said. Last month, Indian apparel retailer Fabindia, backed by billionaire Azim Premji's fund, and jewelry retailer Joyallukkas scrapped their IPOs due to poor market conditions. Sentiments have been subdued in the primary market in the last few months. Market data shows that out of the last 10 IPOs listed on stock exchanges, most of them are still trading below their issue prices. Investors have also been unkind to stocks with expensive valuations and those with a poor bottomline. (With inputs from Reuters) Don’t miss out on ET Prime stories! Get your daily dose of business updates on WhatsApp. • 862.75 03:59 PM | 16 Jun 2023 61.75 (7.71%) 5,200.05 03:59 PM | 16 Jun 2023 273.35 (5.55%) 4,915.05 03:56 PM | 16 Jun 2023 248.25 (5.32%...

Indian skincare startup Mamaearth has put its initial public offering (IPO) on hold because of weak market conditions, two people with direct knowledge of the matter said, a month after two other Indian companies also scrapped their share sales. Mamaearth parent Honasa Consumer Ltd filed its documents for an IPO in December, planning to raise about $200 million to $300 million, through the issuing of new equity and an offer for sale of some existing shares, which could have valued the company at up to $3 billion. Backed by investors such as Sequoia Capital and Belgium's Sofina (SOF.BR), Mamaearth is now in a "wait and watch mode", the sources said, given the turbulence in stock markets globally amid worries about the financial health of banks. Founded in 2016 by the husband and wife duo of Varun and Ghazal Alagh, Mamaearth has been betting on India's booming beauty and personal care market, which is estimated to expand to $30 billion by 2026 and has been growing by 12% a year, per the company's IPO papers. Mamaearth was last valued at $1.2 billion in January 2022. Mamaearth planned to start marketing the IPO and begin initial talks with investors by the end of January, but that has not happened yet, the sources said. In preliminary informal checks with investors, there was a difference in the valuation that the company was seeking and what investors were willing to give, one of the sources said. The company has until December to receive approval for the IPO from the Securi...

MUMBAI, March 27 (Reuters) - Indian skincare startup Mamaearth has put its Mamaearth parent Honasa Consumer Ltd filed its documents for an Backed by investors such as Sequoia Capital and Belgium's Sofina Founded in 2016 by the husband and wife duo of Varun and Ghazal Alagh, Mamaearth has been betting on India's booming beauty and personal care market, which is estimated to expand to $30 billion by 2026 and has been growing by 12% a year, per the company's IPO papers. Mamaearth was last valued at $1.2 billion in January 2022. Mamaearth planned to start marketing the IPO and begin initial talks with investors by the end of January, but that has not happened yet, the sources said. In preliminary informal checks with investors, there was a difference in the valuation that the company was seeking and what investors were willing to give, one of the sources said. The company has until December to receive approval for the IPO from the Securities and Exchange Board of India (SEBI) and file its final prospectus. It still plans to list, but with a delay, the sources said. It may reevaluate market conditions and start its marketing process by October if the sentiment improves, they said. Mamaearth Chief Executive Varun Alagh did not specifically comment on the IPO being put on hold but said the company would not be "optimising for short-term valuations, we are in this for the long term". Alagh said Mamaearth was engaging with SEBI for approval and would consult with bankers after that...

( 1) On December 29th, Honasa Consumer Ltd, the parent company of India’s largest D2C brand Mamaearth, submitted the Draft Red Herring Prospectus (DRHP) to 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, 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. Startup Listed On Gain/Loss from Listing Price (in %) Car Trade.com August 2021 -66.69 Fino Payments Bank November 2021 -60.76 Nazara Technologies March 2021 -50.08 One 97 Communications Limited November 2021 -71.04 PB Fintech (Policy Bazaar) November 2021 -48.67 Delhivery May 2022 -28.35 Tracxn Technologies Limited October 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 o...

Honasa Consumer Private Ltd, the first unicorn of 2022 and 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. The fast-growing D2C (direct to consumer) firm, present in the beauty, babycare and skincare segment, was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh (of 'Shark Tank' fame.) It attained the unicorn status when it raised $52 million at a valuation of $1.2 billion in a fundraising round in January led by top VC firm Sequoia Capital. Read : Mamaearth is the first unicorn of 2022, raises $52 million at valuation of $1.2 billion The fresh issue size 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, according to the draft red herring prospectus reviewed by Moneycontrol. The shareholders who will dilute their holdings include the Alaghs, 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. 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," said one of the persons cited above. "The plan is to launch the deal in March nex...

MUMBAI, June 21 (Reuters) - Sequoia Capital-backed Indian skincare startup Mamaearth is in talks to raise at least $300 million in a planned IPO next year and is seeking a valuation of around $3 billion, three people with direct knowledge of the company's plans told Reuters. Founded in 2016, Mamaearth has become popular in India with its range of "toxin-free" products such as face washes, shampoos and hair oils. It competes with Unilever's India unit, Hindustan Unilever The company was last valued at $1.2 billion in January this year when it raised fresh funds from investors including Sequoia and Belgium's Sofina. Mamaearth is targetting a valuation of around $3 billion - 10-12 times forward revenue, a person briefed on the discussions said. It plans to file draft regulatory papers by the end of this year, said sources, who declined to be named as the plan is private. Two of those sources said Mamaearth is in early-stage discussions to raise at least $300 million in its IPO, with a third source pegging the number at $350 million. A Mamaearth spokesperson declined to comment on its IPO plans. The company's target valuation for the IPO, and the funds it plans to raise, have not been previously reported. The company is in talks with JP Morgan Chase, India's JM Financial and Kotak Mahindra Capital to appoint them as bookrunners to the deal, the sources added JP Morgan Chase declined to comment. JM Financial and Kotak did not immediately respond to requests for comment. Mamaear...

New-age personal and wellness brands such as Mamaearth (Honasa Consumer), WowSkin Science, Plum, Sugar and Good Glamm gained high traction during the pandemic due to their digital-first approach, but traditional FMCG behemoths are no pushovers, Nuvama Institutional Equities said after collating key insights from the draft RHP of Honasa Consumer. The brokerage noted that traditional FMCG conglomerates such as HUL, ITC, Marico, Emami, Dabur India and Tata Consumer have doubled down on direct-to-consumer (D2C) sales and felt only stronger standalone D2C starts-ups would survive going ahead. Traditional FMCG companies have begun acquiring, investing, or building D2C and online-first brands, Nuvama said adding that it is a major step forward—from selling their products on marketplaces to running ‘standalone’ websites and D2C operations. Nuvama said FMCG majors have found it strategic to buy out D2C competitors in some cases. The brokerage noted that HUL has higher beauty exposure via iconic brands with turnover of more than Rs 1,000 crore-plus such as Glow and Lovely, Dove, Lifebuoy, Pond’s, Lux, Clinic Plus, and Lakmé. HUL has D2C websites for premium brands such as Lakmé, Indulekha and Simple, and a multi-brand platform UShop, Nuvama noted. ITC, it said, too has been focusing on strengthening D2C platforms of distribution and has created a vibrant ITC eStore along with the acquisition of Ayurvedic D2C brand Mother Sparsh. Marico was among the first few traditional F...

Honasa Consumer Private Ltd, the first unicorn of 2022 and 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. The fast-growing D2C (direct to consumer) firm, present in the beauty, babycare and skincare segment, was co-founded in 2016 by the husband-wife duo of Varun and Ghazal Alagh (of 'Shark Tank' fame.) It attained the unicorn status when it raised $52 million at a valuation of $1.2 billion in a fundraising round in January led by top VC firm Sequoia Capital. Read : Mamaearth is the first unicorn of 2022, raises $52 million at valuation of $1.2 billion The fresh issue size 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, according to the draft red herring prospectus reviewed by Moneycontrol. The shareholders who will dilute their holdings include the Alaghs, 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. 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," said one of the persons cited above. "The plan is to launch the deal in March nex...