D2C brand Mamaearth in Discussions for a Potential Pre-IPO Funding Round of Up to $150M: Report
- ByStartupStory | August 24, 2023
Mamaearth, the direct-to-consumer personal care brand, is reportedly in discussions to secure a funding round of approximately $120-150 million ahead of its upcoming initial public offering (IPO). This move is prompted by early investors seeking to divest their stakes. The brand has initiated talks with potential investors including SoftBank, sovereign wealth funds like Singapore’s GIC and Qatar Investment Authority (QIA), as well as pre-IPO investors like Fidelity Investments. Mamaearth aims to achieve a valuation of $1.5 billion through a secondary share sale.
Recently, Honasa Consumer Ltd, the parent company of Mamaearth and D2C skincare brand The Derma Co, received approval from India’s markets regulator, Securities and Exchange Board of India (SEBI), for its IPO. According to SEBI filings, Honasa Consumer’s IPO will involve a fresh issuance of equity shares valued at up to Rs 400 crore, along with an Offer for Sale (OFS) of up to 4,68,19,635 shares by promoters and existing shareholders. This includes founders Varun and Ghazal Alagh, actress-investor Shilpa Shetty Kundra, Kunal Bahl, Rohit Kumar Bansal, and Sofina Ventures.
Founded in 2016 by the husband-wife team Varun and Ghazal Alagh, Mamaearth attained unicorn status in 2021 by raising $37.5 million in a funding round led by Sequoia. It achieved profitability in FY22, recording a net profit of Rs 19.8 crore. Should the funding deal materialize, Mamaearth could potentially become the first venture capital-funded unicorn to go public on Indian stock exchanges this year. This development comes after the successful listing of drone manufacturer ideaForge Technologies in June, which was oversubscribed 85.2 times in the retail category.
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