MamaEarth parent raises $92 Mn in pre IPO round

Honasa Consumer Ltd, the parent firm of D2C brands such as Mamaearth, The Derma Co, and BBlunt, has raked in Rs 765.2 crore (approximately $92 million) from 49 anchor investors, a day ahead of its initial public offering (IPO) opening.

Smallcap World Fund Inc, Fidelity International, Abu Dhabi Investment Authority, Government Pension Fund Global, Caisse De Depot ET Placement, FSSA India Subcontinent Fund, Carmignac Portfolio, Goldman Sachs, ICICI Prudential FMCG Fund, and Hornbill Orchid India Fund are some of the notable anchor investors in the list.

The board of the company in consultation with BRL Managers, has finalized to allocate 23,617,228 equity shares to anchor investors at an issue price of Rs 324 per share in a consideration of Rs 765.2 crore or a little over $92 million.

The investor also includes as many as 7 mutual funds via their 19 schemes. The list of mutual funds includes ICICI Prudential, Aditya Birla Sun Life, Nippon, Axis Mutual Fund, Whiteoak Capital, Invesco, and Canara Robeco.

In RHP, MamaEarth disclosed that its co-founders Varun Alagh and Ghazal Alagh will sell part of their stakes in the firm whereas early backers including Fireside Ventures, Stellaris Venture Partners, Sofina will sell 7.97 million, 9.56 million and 10.94 million shares during the initial public offer.

Peak XV Partners (formerly Sequoia Capital) and Evolvence India will not join the OFS.

For the fiscal year ending on March 31, 2023, Honasa’s revenue from operations grew 58.3% to Rs 1,493 crore in FY23 from Rs 943 crore in FY22. MamaEarth also revealed its quarterly results for Q1 FY24 during which it registered Rs 464.49 crore in revenue from operations.

The company posted a profit after tax of Rs 24.3 crore during Q1 FY24. Its EBITDA margin stood at 8.77% in the first quarter of the current financial year.

Get the company’s funding history, year-on-year financial performance, and other key metrics at Thekredible.