D2C skincare brand Mamaearth, which incurred a loss of Rs 151 crore in FY23, is gearing up for its initial public offering (IPO) scheduled for October 31. The parent company, Honasa Consumer Pvt Ltd, which also owns The Derma Co and Aqualogica, aims to raise Rs 10,500 crore through the IPO, as reported Entrackr.
To precede the IPO, a pre-IPO placement will take place on October 30, with the public offering closing on November 2. Mamaearth plans to issue new shares worth Rs 365 crore, along with an offer for sale (OFS) of 41.25 million shares, according to the company’s red herring prospectus (RHP) filed with SEBI. However, the proceeds from the new shares are lower than the initial estimate of Rs 400 crore stated in the company’s DRHP submitted last year.
As part of the IPO, MamaEarth co-founders Varun Alagh and Ghazal Alagh will sell a portion of their ownership. Additionally, early investors such as Fireside Ventures, Stellaris Venture Partners, and Sofina will sell 7.97 million, 9.56 million, and 10.94 million shares respectively. Snapdeal founders Kunal Bahl and Rohit Bansal, along with investor and brand ambassador Shilpa Shetty Kundra, will also participate in the OFS.
Mamaearth witnessed a significant increase in operating revenue in FY23, reaching Rs 1,493 crore compared to Rs 943 crore the previous year. However, overall expenditure surged from Rs 942 crore to Rs 1,502 crore. Employee benefit costs rose 109 percent to Rs 1,649 crore, while other expenses increased 50 percent to Rs 8,584 crore.
In 2022, Mamaearth attained the coveted status of India’s first unicorn following a funding round led Peak XV Partners, which raised $52 million.