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MamaEarth On Course for an IPO by 2023

by upendra
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In recent news, Mamaearth, a prominent direct-to-consumer (D2C) company specializing in babycare and skincare products, has set its sights on going public through an initial public offering (IPO) in 2023 (1). This Gurugram-based unicorn has taken a significant step towards this goal by changing its corporate status from Honasa Consumer Private Limited to Honasa Consumer Limited, marking a pivotal moment in its journey.

The Road to Profitability

Mamaearth, under the dynamic leadership of its founders Ghazal (2) and Varun Alagh (3), achieved a remarkable milestone by turning a profit in the fiscal year 2022, reporting a net profit of Rs. 19.8 Cr. This was a notable turnaround from the previous fiscal year, where the company had reported a significant net loss of Rs. 1,332.2 Cr.

The company’s operating revenue also witnessed impressive growth, more than doubling compared to the previous year (YoY), reaching RS. 931 Cr. Simultaneously, its expenses decreased substantially to RS. 924.6 Cr, reflecting a nearly fifty percent reduction.

Mamaearth’s journey began in 2016 when it initially focused on baby care products. Still, it quickly diversified into the beauty and skincare sectors. The turning point came when the D2C brand achieved unicorn status by securing $38 million in its Series F funding round at the end of December 2021.

Backed by Notable Investors

Mamaearth’s success story has attracted investments from some of the most renowned names in venture capital, including Sequoia India, Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala, Snapdeal’s Kunal Bahl and Rohit Bansal, and actress Shilpa Shetty Kundra, among others.

In a fiercely competitive market, Mamaearth competes with beauty marketplace platforms like Plum, WoW Skin, The Moms Co, Biotique, as well as established giants like VLCC and Vicco.

The Path to IPO

Reports suggest that Mamaearth is eyeing a potential IPO as early as July 2023, though the company has previously indicated its intention to go public as part of its three-year plan.

However, the journey to IPO may not be without its challenges. Mamaearth operates as an omnichannel retailer with a significant presence in Southeast Asia. While approximately 70% of its revenue is generated through online channels, the remaining 30% comes from physical partnerships.

The company boasts a diverse portfolio that includes both acquired and in-house brands, adding complexity to its IPO preparations.

The Genesis of MamaEarth

The inspiration behind Mamaearth’s journey lies in a critical realization. Ghazal, during her time in the United States, became acutely aware of the potentially harmful substances present in commonly used personal care and baby care products. This newfound awareness led her to scrutinize ingredient lists before making any purchases.

However, when Ghazal and Varun were expecting their first child in India, they encountered a significant problem. The baby care products available in India contained dangerous toxins, leaving them with no safe alternatives.

To address this issue, the couple decided to import reliable products from other countries, primarily the United States. This, however, proved to be an expensive and cumbersome solution. They soon recognized that their predicament was not unique and that many Indian parents faced the same challenge.

This realization became the driving force behind Mamaearth’s inception. The couple embarked on a mission to make baby products both safer and more affordable in India. They established a dedicated research and development team and initiated the process of obtaining relevant certifications.

These efforts culminated in the birth of Mamaearth, which soon became Asia’s pioneer in offering “MADE SAFE” certified products (4).

From Personal Investment to Seed Funding

Mamaearth began its journey with an initial investment of approximately Rs. 90 lakh, entirely funded by Varun and Ghazal. This was followed by seed investments in 2016, signifying the first steps towards realizing their vision.

A Holistic Approach

Mamaearth is not just about babies; it caters to a broader audience. Its product range spans baby care, hair care, skin care, and more, encompassing over 80 natural products.

The company has introduced innovative products, including India’s first baby wipes made from bamboo, a stomach roll-on with asafoetida and fennel to ease colic and digestion, and a 100% natural plant-based toothpaste for children aged one to ten years.

Additionally, Mamaearth offers an array of hair and skincare products featuring well-known natural ingredients such as onion, ubtan, tea tree, vitamin C, argan, cocoa, and charcoal.

The company has expanded its offerings to cater not only to babies but also to the mothers of these babies, providing items like sunscreen and serums for stretch mark reduction. Mamaearth approaches motherhood comprehensively, addressing various aspects of this transformative journey. Their onion-flavored products for mothers have gained immense popularity among customers.

Mamaearth’s journey from a personal quest for safer baby products to a prominent D2C unicorn on the cusp of an IPO exemplifies entrepreneurship fueled by passion, innovation, and a commitment to delivering safe and natural solutions to consumers.

As Mamaearth continues its march towards the stock exchange, it remains a beacon of inspiration for aspiring entrepreneurs and a testament to the power of addressing unmet consumer needs.


Q: What is the significance of Mamaearth’s transition from private to public status? A: The transition from private to public status is a crucial step towards Mamaearth’s IPO (initial public offering) plans. It allows the company to offer shares to the public and raise capital for expansion and growth.

Q: How did Mamaearth achieve profitability in fiscal year 2022 after reporting a significant loss in the previous year? A: Mamaearth’s path to profitability in FY22 can be attributed to its rapid revenue growth and prudent expense management. The company’s operating revenue more than doubled year-over-year, while expenses were significantly reduced.

Q: Who are some of the prominent investors backing Mamaearth? A: Mamaearth has garnered investments from notable venture capital firms such as Sequoia India, Stellaris Ventures, Fireside Ventures, as well as individuals like Marico’s Rishabh Mariwala, Snapdeal’s Kunal Bahl and Rohit Bansal, and actress Shilpa Shetty Kundra.

Q: What sets Mamaearth apart from other brands in the market? A: Mamaearth distinguishes itself by offering a wide range of “MADE SAFE” certified products that are toxin-free and formulated with natural ingredients. The company’s commitment to safety and affordability has resonated with consumers.

Q: What products does Mamaearth offer besides baby care items? A: Mamaearth’s product portfolio extends beyond baby care and includes hair care, skincare, and various wellness products. They offer innovative solutions like bamboo-based baby wipes, natural toothpaste, and products for mothers.

Q: Are there any challenges or uncertainties in Mamaearth’s path to IPO? A: Yes, the IPO journey for Mamaearth, like many other e-commerce businesses, may face challenges and uncertainties related to market conditions. It’s essential to monitor the company’s progress as it moves closer to its IPO.


Mamaearth’s journey from a small, personal quest for safer baby products to a prominent D2C unicorn with plans for an IPO in 2023 is a testament to entrepreneurship driven by purpose and innovation. The founders, Ghazal and Varun Alagh, recognized a critical need in the market and embarked on a mission to provide safer and more affordable options for parents and consumers.

The company’s transformation into a profitable venture in FY22 showcases its ability to adapt, grow, and manage its finances effectively. Backed by renowned investors and offering a diverse range of “MADE SAFE” certified products, Mamaearth has established itself as a trusted brand in the beauty and wellness industry.

As Mamaearth navigates the complexities of going public, it serves as an inspiration for aspiring entrepreneurs, highlighting the importance of addressing consumer needs with passion and dedication. The journey of this unicorn is a story of resilience, innovation, and a commitment to delivering safe and natural solutions to consumers.

Please note that developments regarding Mamaearth’s IPO may have occurred since the information available up to September 2021, and it’s advisable to stay updated on the company’s progress in the lead-up to its IPO in 2023.

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