Decoding MamaEarth’s DHRP


Honasa Consumer Ltd, the parent firm of D2C brands such as MamaEarth, The Derma Co and BBlunt, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an initial public offering.

The IPO consists of the combination of fresh proceeds of up to Rs 400 crore and an offer for the sale of up to 46,819,635 equity shares held by the investors. 

In May, Entrackr reported that MamaEarth is weighing options to go public by 2023.

Varun and Ghazal Alagh offered 3,2,86,300 shares in the offer for sale while external investors Evolvence India, Fireside Ventures, Sofina and Stellaris offered 10,83,600 shares, 79,72,478 shares, 19,133,948 shares and 12,755,965 shares, respectively.

Along with the institutional investors, angel investors like Kunal Bahl, Rishabh Mariwala, Rohit Bansal, and Shilpa Shetty Kundra participated in the offer-for-sale (OFS) with 777,672 shares, 477,300 shares, 777,672 shares, and 554,700 equity shares respectively.

Importantly, Sequoia Capital, which is a major stakeholder in MamaEarth, has not participated in the OFS.

Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, JM Financial Limited, and J.P. Morgan India Private Limited are the book-running lead managers to the issue.

According to the DRHP, proceeds from the IPO will be used in advertisement expenses towards enhancing the awareness and visibility of the brands, opening new salons through its subsidiary BBlunt, inorganic acquisitions, and setting up new EBOs.

As per the Fintrackr analysis, the Alaghs collectively own 43.54% of equity while Sequoia Capital, Fireside Ventures, and Stellaris are the major stakeholders with 20.94%, 15.01%, and 11.24% in the company.


During FY22, the Gurugram-backed company registered a 2X scale to Rs 943 crore while its profits reduced by 50.3% to Rs 14.4 crore. The company further recorded an operating income of Rs 722 crore in the first six months of FY23 (H1 FY23), DRHP filed with the SEBI show. At this rate, the company might end FY23 with more than Rs 1,400 crore in revenue.


MamaEarth became the first unicorn of 2022 after raising $52 million led by Sequoia. Entrackr had exclusively reported the development. The company has become the first D2C beauty brand to file for IPO and has been the flagbearer among its rivals in terms of revenue. Last year, beauty centric online marketplace Nykaa filed for IPO with profits in its annual report.

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