Beauty brand Mamaearth raises $204m in India IPO
India’s Honasa Consumer, the private equity-backed parent of mother-and-baby brand Mamaearth, raised about USD 204m in a domestic IPO, facilitating several partial exits.
The company sold 52.5m shares at INR 324 apiece, the top end of the indicative range. Its debuted on November 7 at INR 330 and INR 324 on the NSE and BSE exchanges, respectively. The stock closed on November 8 at INR 322.25, giving the company a market capitalisation of around INR 103.7bn (USD 1.2bn).
Mamaearth has raised more than USD 200m in private funding. It achieved unicorn status last year in a USD 52m round led by Sequoia Capital India, now Peak XV Partners. Approximately USD 150m was raised from inception in 2016 through December 2021, when Evolvence India, Sofina, and Peak XV provided a USD 78m round. Fireside Ventures was the first institutional investor and backed four early rounds.
Peak XV had a 19.4% holding as of the IPO filing, while Fireside had 10.3%, and Stellaris Venture Partners and Sofina each had 9.4%. Stellaris, Sofina, and Fireside made partial exits, selling about INR 3.5bn, INR 3.1bn, and INR 2.6bn worth of shares, respectively, according to the prospectus.
Honasa is one of the largest digital-first beauty and personal care companies in India with six portfolio brands led by Mamaearth. The product suite spans baby care, face care, body care, hair care, colour cosmetics, and fragrances. These are marketed via an omnichannel distribution channel and various data-enabled consumer engagement functions.
Mamaearth focuses on toxin-free beauty products made with natural ingredients. Initially introduced as a natural ingredients-led baby care brand with products inspired by traditional beauty recipes, it was aimed at parents who were increasingly concerned about the ingredients used in baby products. The offering has since expanded beyond baby care into a more diversified beauty and personal care platform.
Honasa claims to be the largest company in its space in India in terms of revenue and that Mamaearth is the largest brand of its kind in India in terms of revenue from operations. Overall revenue improved 49% to INR 4.6bn during the 12 months to June 2023 as the company flipped from a loss of INR 115.3m to a profit of INR 247.1m.
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