Mamaearth, a skincare start-up has put its initial public offerings on hold because of the weak market conditions, the Economic Times reported. The development has come recently after companies like FabIndia, Snapdeal and boAT scrapped IPOs stating uncertain market conditions.  

In December 2022, Honasa Consumer Ltd, the parent company of Mamaearth, filed its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). It was planning to raise about $200 million to $300 million, through the issuing of new equity and an offer for the sale of some existing shares, which could have valued the company at up to $3 billion, The report added.

Mamaearth is reportedly now in a "wait and watch mode".

Founded in 2016 by the couple Varun and Ghazal Alagh, Mamaearth is backed by Sequoia Capital India, Sofina SA, Fireside Ventures and Stellaris Venture Partners, Honasa Consumers Ltd's brand. Ghazal Alagh rose to fame during Shark Tank Season 1 where he featured as one of the Sharks.

Shark Tank is a reality show featuring entrepreneurs pitching business presentations on their start-ups to a panel of investors also called Sharks, who decides whether to invest in the company.

Mamaearth reportedly planned to start marketing the IPO and begin initial talks with investors by the end of January, but the plan did not realize. 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.

Varun Alagh said in a media statement that Mamaearth was engaging with SEBI for approval and would consult with bankers after that. He added that its largest investor, Sequoia, would not be selling any shares in the IPO and the founders would own more than 97 per cent of their shares after the IPO.