Mamaearth Startup

Mamaearth Startup – Organic Products Manufacturer

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Mamaearth Startup

Mamaearth Startup is a Direct to consumer (D2C) skincare and beauty brand founded in September 2016 by Ghazal Alagh and Varun Alagh. Its mission is to provide chemical-free products to every baby in India, now the company serves babies, moms, dads, grandparents, and everyone else. Mamaearth is a promising startup in the cosmetics industry that comes with the American Made safe Certification, the first nontoxic seal for the products in use today.

Mamaearth Startup

Mamaearth Company Details –

Startup NameMamaearth
HeadquartersGurugram, India
FoundersGhazal Alagh and Varun Alagh
Founded2016
SectorPersonal Products
Parent OrganizationHonasa Consumer Pvt. Ltd.
Total Funding$110.8 Mn (DEC 21)
Funding Rounds7
Investors10
Valuation$1.2 Bn (JAN 22)
Revenue$61.90 Mn (FY21)
Acquisitions4
Websitemamaearth.in

Mamaearth Origin –

Mamaearth Startup’s journey began when the two founders quit their corporate jobs and decided to start their own business. They had spent an extensive amount of time and effort in identifying the raw material for the products, onboarding manufacturing partners, and getting necessary certifications and approvals. Initially, Mamaearth started with barely six products in the baby care range. Today Mamaearth has diversified and expanded into skin and hair care products for men and women across 80 SKUs.

Mamaearth Founders/Owners –

Mamaearth was Founded in 2016 by Ghazal Alagh and Varun Alagh, incorporating Honasa Consumer Private Limited and launching the Mamaearth line of toxin-free products in December. They are on a mission to provide safe and natural products for women and families.

Varun Alagh –

Varun Alagh has a BE in Electrical Engineering from Delhi College of Engineering, Also he is an MBA graduate from XLRI Jamshedpur. He had worked with Hindustan Unilever, Smirnoff, and The Coca-Cola Company before he founded Honasa Consumer Pvt. Ltd., Mamaearth’s parent company.

Ghazal Alagh –

Ghazal has completed her BCA in Information Technology student from Panjab University. In February 2012, she founded Dietexpert before finding Mamaearth in 2016 under the guidance of Honasa.

Mamaearth’s Business Model –

Mamaearth Startup is a Direct to consumer (D2C) skincare and beauty brand. They sell their products directly to customers through their website and D2C channel like Amazon, Flipkart, etc., and retail stores. The absence of intermediaries such as distributors or wholesalers helps them to keep their costs low and offer their products at a competitive price.

How Does Mamaearth Earn Money?

Almost 90% of the sale of Mamaearth products comes from online platforms. 80% of the revenue comes from skincare and haircare products and only 20% of the brand revenue comes from baby products. The company enjoys near about 65% of gross margin.

Mamaearth Ownership –

NameOwnership
Varun Alagh38.72%
Sequoia Capital15.22%
Fireside Ventures12.04%
Stellaris Ventures10.42%
Sofina Ventures8.72%
Ghazal Alagh3.58%
Shipa Shetty Kundra1.32%
Others10%

Mamaearth Target Market Size –

According to the market research company Technavio, the baby care market in India is expected to grow at 17% CAGR in revenue in the next three years.

  1. Baby
  2. Beauty
  3. Hair
  4. Face
  5. Body
  6. Gift packs

Mamaearth Funding and Investors –

Announced DateTransactionsMoney RaisedInvestors
DEC 2016Seed$125KFireside Ventures
SEPT 2017Venture$1 MnFireside Ventures
APRIL 2018Venture$250KShilpa Shetty
SEPT 2018Series A$4 MnFireside Ventures, Stellaris Venture Partners
JAN 2020Series B$17 MnSequoia Capital India
JULY 2021Series C$50 MnSofina Ventures
DEC 2021Series D$37.5 MnSequoia Capital India

Mamaearth Acquisitions –

Mamearth has acquired 4 companies Dr. Sheth’s for Indian Skin, BBLUNT, Mompresso, and Mompresso MyMoney.

Mamaearth Net Worth and Financials –

The company has catered to over 1.5 million consumers in more than 500 cities across India. Mamaearth is one of India’s fastest-growing brands crossing the Rs 100 crore turnover mark in just four years. Mamaearth collected operating revenue of Rs 461 crore in FY21, a massive jump from the Rs 109.8 crore during FY20. The firm made 98% revenue from its domestic sales (India) while its global sales, which formed the remaining, grew 9.5X during FY21.

  1. Revenue jumped 4.2x
  2. Total expenses surged 3.7X
  3. Raw Material costs surged 3.5X
  4. Transportation and secondary packaging costs surged 4.2x
  5. Post-tax profit was Rs 24.6 crore in FY21 as compared to the loss of Rs 5.92 crore during FY20
  6. EBITDA Margin of 6.50% in FY21 compared to -5% in FY20
  7. It spent Rs 0.95 to earn a single rupee of operating revenue in FY21 as compared to 1.07 in FY20
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