Skincare startup Mamaearth plans to raise Rs 23,456 crore in 2023 with IPO

Mamaearth, India's popular wellness brand, is expected to grow even bigger by raising money through an IPO in 2023. Founders Varun Alagh and wife Ghazal Alagh (who you may remember from the Indian version of Shark Tank) are expected to raise $300 million ( about Rs 23,456 crore) by way of public issue. Here's more about the brand and its IPO dreams.

If you search for the best organic wellness products on YouTube or Amazon, Mamaearth is bound to be somewhere on your list. Its Ubtan Facewash and Onion hair products are Amazon bestsellers and people cannot stop raving about their tea tree face wash and charcoal face masks. In the era where brands are launching more than ever lab-tested & pigmented products, Mamaearth is winning customers in two ways:

1. They are going the ancient, traditional way when it comes to creating their products.
2. Using a modern touch by adding a lot of celeb sparkle. 

SO WHY DO PEOPLE LOVE MAMAEARTH? 

Mamaearth's journey began in 2016 with organic and natural face washes and body lotions. It was one of the first Asian brands to be certified with a Made Safe certificate which means that it's completely toxin-free. Mamaearth's 'Made Safe Certification' helps it stand out since this certifies that its products are made from items that are not known to cause an adverse impact on our health.

Though most other wellness products on the store shelves are certified too, they may still contain carcinogens, developmental toxins, heavy metals, pesticides, and other harmful toxins. Many of us use these basic products without even knowing that the compounds from these essential skincare items are pretty toxic and actually accumulate in our skin and in the environment. But since Mamaearth products are different, they are preferred and today have more than 80 toxin-free products. The brand has now expanded to hair oils, shampoos, baby care, hair care, and men’s grooming products and its annual revenue has passed the 500 crore mark.

OTHER IPO DETAILS  

1. Mamaearth is aiming for a valuation of around $3 billion which is about 10 to 12 times the earnings based on sales growth and future revenue potential. When Mamaearth became a unicorn in January 2022, it had raised $52 million from Sequoia Capital at a valuation of $1.2 billion. Before that, it had raised about $50 million in July 2021 from Sofina Ventures when the valuation was $730 million. 
2. Mamaearth will file the IPO papers by the end of the year
3. The IPO might be managed by bankers JP Morgan Chase, JM Financials, and Kotak Mahindra.