The company targets to raise $300 million from a possible IPO at a valuation of $3 billion in 2023
Direct-to-consumer (D2C) brand Mamaearth is gearing up for its initial public offering ( IPO) programme in 2023. This specilation was fueled after Honasa Consumer Private Limited, the start-up's parent company, changed its name to Honasa Consumer Limited, revealing the possibilities of a future IPO programme.
Mamaearth has been planning to go public since the beginning of 2022. According to a June report published in the Economic Times, the company wanted to raise $300 million from a IPO at a valuation of $3 billion in 2023.
Founded in 2016, the skin and baby care brand gathered popularity with a vast range of toxin-free products like shampoo, hair oil and face wash. It recorded a Rs 19.4 crore net profit in the FY 2022 with a revenue collection of Rs 934 crore.
Varun Alagh, the company's chief executive officer (CEO) and co-founder earlier told the Economic Times, that 70 per cent of the company's sales come from online platforms. He also added that the organisation aims to strengthen its offline presence now, targeting 40,000 outlets across ten cities.
Mamaearth is reportedly in talks with the Belgian investment fund Sofiana to raise $60 million to $80 million, which is likely to drive up the company's value from $200 million to $700 in 2022.
In December 2021, Varun and Ghazal Alagh-led Mamaearth achieved unicorn status after raising $38 million in a series F funding round.