Mamaearth, D2C skincare brand with Rs 151 cr loss in FY23, to launch IPO on Oct 31

Mamaearth intends to issue new shares for Rs 365 crore, coupled with an offer for sale (OFS) of 41.25 million shares, according to the company’s red herring prospectus (RHP) filed with SEBI

   
mamaearth in loss ahead of IPO

Direct-to-consumer (D2C) skincare brand Mamaearth, which posted a Rs 151 crore loss in FY23, is set to launch its initial public offering (IPO) on October 31.

Honasa Consumer Pvt Ltd, the parent company of Mamaearth and other D2C brands such as The Derma Co and Aqualogica, is expected to raise Rs 10,500 crore in the IPO, reports Entrackr.

The company will do a pre-IPO placement on October 30, with the public offering closing on Nov 2.

Mamaearth intends to issue new shares for Rs 365 crore, coupled with an offer for sale (OFS) of 41.25 million shares, according to the company’s red herring prospectus (RHP) filed with SEBI.

The new proceeds are less than the Rs 400 crore suggested in the company’s DRHP submitted in December last year, the report mentioned.

MamaEarth co-founders Varun Alagh and Ghazal Alagh will sell a portion of their ownership in the company, while early investors such as Fireside Ventures, Stellaris Venture Partners, and Sofina will sell 7.97 million, 9.56 million, and 10.94 million shares during the IPO. In addition, Snapdeal founders Kunal Bahl and Rohit Bansal, along with investor and brand ambassador Shilpa Shetty Kundra, will participate in the OFS.

Mamaearth’s operating revenue increased significantly in FY23, reaching Rs 1,493 crore from Rs 943 crore the previous year.

However, overall expenditure increased from Rs 942 crore to Rs 1,502 crore.

Employee benefit costs increased by 109 per cent to Rs 1,649 crore, while other expenses increased by 50 per cent to Rs 8,584 crore.

Mamaearth became India’s first unicorn of 2022 after raising $52 million in a funding round led by Peak XV Partners.

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