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Exclusive: After unicorn status, MamaEarth now eyes IPO by 2023

Direct to consumer (D2C) skincare and beauty brand MamaEarth is weighing options to go public in the next 12-15 months, said two people aware of the plan. While the company in the past maintained that IPO is two to three years away, the people cited above said that internal discussions have been going on for a potential public listing in FY24 for the past couple of months.

“Several rounds of discussions centered around the IPO took place in the past few weeks and there is a broader consensus that MamaEarth will go public by June-July 2023,” said one of the people requesting anonymity.

According to these people, MamaEarth is set to pitch IPO plans to the company’s board of directors. “Sequoia, Sofina and other backers are likely to give a green signal to IPO as the company’s bottom line is strong and profitable,” said the person quoted above.

Despite the pandemic, MamaEarth had grown at a scorching pace in the fiscal year ending March 2021 and also turned profitable. According to Fintrackr, the Bengaluru-based firm’s operating revenue jumped 4.2X to Rs 461 crore in FY21 from Rs 108.9 crore in the preceding financial year (FY20).

“MamaEarth’s financial performance is stronger than most of the consumer internet companies who are queued up for public listings,” said the second person who also requested not to be named. “The company has ended FY22 with close to Rs 1,000 crore revenue and has set a target to post Rs 1,800-2,000 crore topline for this fiscal year [FY23].”

Queries sent to MamaEarth, Sequoia and Sofina didn’t elicit any immediate response. We will update the story as and when they respond.

MamaEarth became the first unicorn of 2022 after raising a $52 million worth round led by its early backer Sequoia. The company has emerged as a leader in the direct to consumer (D2C) space for beauty and skincare and was valued at around $1.07 billion in the last financing round.

Besides India, Mamaearth has set up operations in Nepal, Bangladesh and Sri Lanka and is about to launch in the Middle East region.

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