Mamaearth, a direct-to-consumer (D2C) skincare brand, is preparing to launch its initial public offering (IPO) on October 31. The company, which reported a loss of Rs 151 crore in FY23, aims to raise Rs 10,500 crore through the IPO. Honasa Consumer Pvt Ltd, the parent company of Mamaearth, along with other D2C brands like The Derma Co and Aqualogica, will conduct a pre-IPO placement on October 30, followed by the public offering closing on November 2.
As per the company’s red herring prospectus (RHP) filed with SEBI, Mamaearth plans to issue new shares worth Rs 365 crore and offer for sale (OFS) 41.25 million shares. It is worth noting that the new proceeds fall short of the Rs 400 crore initially mentioned in the company’s DRHP submitted last year.
During the IPO, Mamaearth’s co-founders, Varun Alagh and Ghazal Alagh, will sell a portion of their ownership. Additionally, early investors such as Fireside Ventures, Stellaris Venture Partners, and Sofina will sell 7.97 million, 9.56 million, and 10.94 million shares respectively. Furthermore, Snapdeal founders Kunal Bahl and Rohit Bansal, along with investor and brand ambassador Shilpa Shetty Kundra, will participate in the OFS.
Mamaearth witnessed a significant increase in operating revenue in FY23, reaching Rs 1,493 crore compared to Rs 943 crore in the previous year. However, overall expenditure also rose from Rs 942 crore to Rs 1,502 crore. Employee benefit costs surged by 109 percent to Rs 1,649 crore, while other expenses jumped by 50 percent to Rs 8,584 crore.
In 2022, Mamaearth became India’s first unicorn after securing $52 million in funding, led by Peak XV Partners.
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