Mamaearth Becomes The Youngest Indian Unicorn To List In A Public Debut


Shares of Honasa Consumer, the parent company of Mamaearth, the direct-to-customer beauty and personal care brand, made a successful public listing, attracting significant attention from Indian startups assessing their own initial public offerings. This achievement positions Mamaearth as the youngest Indian unicorn to list.

Key Takeaway

Mamaearth, the direct-to-customer beauty and personal care brand, has become the youngest Indian unicorn to list in a public debut. With a market capitalization of

.28 billion, Mamaearth’s listing success underscores the potential of the Indian startup ecosystem.

The Public Listing

Mamaearth, a seven-year-old company that experienced a surge in demand for its products during the pandemic, initially climbed to 337.60 Indian rupees ($4.05) per share before settling at 331.45 Indian rupees ($3.98) on the National Stock Exchange (NSE). The listing price on the local exchange was 330 Indian rupees. Presently, the firm boasts a market capitalization of $1.28 billion.

Backing and Funding

Mamaearth, valued at $1.2 billion in early 2022, counts reputable backers such as Peak XV Partners, Fireside Ventures, Stellaris Venture Partners, and Sofina among its supporters. In a recent anchor round, the company raised approximately $92 million from over three dozen asset managers, including notable names such as Abu Dhabi Investment Authority, Fidelity, Norges Bank, Invesco, and Goldman Sachs. Peak XV Partners, in particular, has reportedly enjoyed a 10x-plus return on its investment in Mamaearth based on the debut listing price.

Rapid Growth and Expansion

Mamaearth’s journey from seed funding to listing in just over five years is commendable, particularly for a consumer products and brand company. The firm’s revenues have soared from 15 crores to ?1.5k crores, and its listing price valuation reflects a remarkable growth multiple. Mamaearth operates an impressive portfolio of six distinct brands, with its eponymous main brand contributing approximately 80% of its revenue in the fiscal year 2023. The company also owns and operates The Derma Co, Aqualogica, and Ayuga, in addition to its acquisitions of BBlunt and Dr. Sheth’s.

Business Model and Market Reach

Mamaearth’s business model relies on third-party manufacturing, with no manufacturing intellectual property of its own. The company utilizes an omni-channel network to reach consumers, combining online sales, including direct-to-consumer and e-commerce, which account for 59% of total revenue across nearly 18,600 pin codes. Offline channels contribute 36% of sales, serving over 154,000 retail points that encompass traditional and modern trade outlets, exclusive stores, and BBlunt salons.

Financial Performance and Outlook

In the fiscal year 2023, Mamaearth reported revenues of approximately $170 million, with the online channel accounting for around 56% of this figure. The company maintains a gross margin of 70% and an adjusted EBITDA margin of 3%. Notably, offline sales now represent 36% of the total revenue, signaling growth for this segment.

Implications for the Indian Startup Ecosystem

Mamaearth’s successful public listing serves as a significant benchmark for other Indian startups considering their own initial public offerings. With around a dozen startups observing market conditions to determine the optimal timing for their debuts, Mamaearth’s achievement highlights the potential to create valuable opportunities in the Indian market. Despite initially seeking a $3 billion valuation, Mamaearth adjusted its target due to challenging market conditions.

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