MamaEarth's parent puts its IPO on hold: Report

Direct to consumer (D2C) skincare and beauty brand MamaEarth has reportedly delayed its listing plan due to weak market conditions. With this, the Sequoia-backed company will join the likes of Snapdeal, MobiKwik, PharmEasy, Droom, OYO, and boAt which have stalled their plans to launch IPO despite filing their Draft Red Herring Prospectus (DRHP) with SEBI.

According to a Reuters report, differences over valuation between the company and potential investors along with poor market conditions have forced the company to put the listing plan on hold.

“…we are still engaging with Sebi on our DRHP and awaiting formal approval for the same. Post the approval as is in line with the regulations we will have 12 months to file RHP and take the company public, which we will do in consultation with our bankers,” said MamaEarth in response to Entrackr’s queries.

On December 29, Honasa Consumer Ltd, the parent firm of D2C brands such as MamaEarth, The Derma Co and BBlunt, filed its DRHP with SEBI to raise funds through an IPO. The company was the first unicorn of 2022 and also became one of the few startups that filed DRHP after achieving profitability.

Clarifying its stance on difference over valuation, the company said, “...As you are aware pricing and valuations will be discovered as part of our marketing roadshows as we start them.”

Entrack was first to report about MamamEarth’s IPO plan in May last year.

MamaEarth registered a two fold jump in its revenue to Rs 943 crore in FY22 whereas its profit declined by 50% to Rs 14.4 crore during the same period. 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 is likely to go past FY22 revenue numbers in the ongoing fiscal year.