Mamaearth is a company known for delivering absolutely non-toxic products in the competitive global market of FMCG companies. It was started by a husband-wife duo- Varun Alagh and Ghazal Alagh, in late 2016. Nowadays, India is thriving with startups, among which several are gaining status in the Unicorns list as well.
Mamaearth has gained quite a prominent status as it has over 5 million Indian consumers across more than 500 cities. The company started with just six products in its catalog and has grown into extreme success with more than 225 natural and toxic-free products.
Behind such success, there is a brief story starting from when the couple realized that the situation of baby products in the market is pretty rough and almost every product consists of toxic chemicals, which becomes quite dangerous for the babies. Just like this story, there are several interesting stories and facts about Mamaearth. So, let’s get started!
Mamaearth Origin Story – From Parents to Entrepreneurs
Varun Alagh and Ghazal Alagh never thought of becoming millionaires or entrepreneurs. They were just a happy couple who just had a baby and struggled to raise their baby with the proper nutrition and products, keeping safety in mind.
Their encounter with baby products was extremely tough as when they researched the composition of the product, they realized there wasn’t a single product that did not have toxic chemicals in it.
About Mamaearth – Varun Alagh, Shilpa Shetty, Ghazal Alagh
This compelled them to launch a company that offers natural and toxin-free baby products, which later on came under the parent company Honasa Consumer Pvt Ltd, in Gurugram.
Initially, Mamaearth started the company with just six products developed with the best natural and toxic-free ingredients. But soon, they gained massive success and expanded their products into multiple categories like skincare, haircare, and others for men and women across 80 SKUs (stock keeping unit). They grew into more than 80 products and nearly 12 new products in the lockdown period.
Mamaeath came with an initiative to make the world a better place for us and our children. It has organized several campaigns as well, such as ‘Let’s Recycle’ and #MyFirstGoodDeedOf2021, which gained massive success as they showed how they are working to conserve Mother Earth for the upcoming generation, and this majorly attracted the parents to the brand.
Majorly Targets Mothers
The fun yet strong fact about Mamaeath is its target audience is mothers. They believe that a mother knows the best, and once they are familiar with the quality of its products, they’d know how effective and honest this brand is.
In fact, they launched a special campaign as well on the occasion of Mother’s Day – #MamaeathMummySong on their social media platform. This showed how important a place our mothers hold in our lives with an all-new peppy song about mothers.
Mamaearth Promotional Campaign – Mummy Song
Lean Innovation Cycle
Mamaearth company is an FMCG company that works on the lean innovation cycle to achieve its current growth rate. This cycle basically launches, learns, and scales instantly, which helps them focus on consumer-specific needs identifications. With this approach, Mamaearth has gathered investments from Sequoia Capital India, Fireside Ventures, and Stellaris USD 23.3 million.
The revenue model of Mamaearth company is entirely based on the sale of its products to consumers through its direct-to-consumer and e-commerce platforms. Moreover, Mamaearth has gained huge success in the past few years and is thriving in segmenting, targeting, and positioning.
In such stiff competition in the market, with popular brands such as Johnson & Johnson, Headspot, Ulta Beauty, Sehatand, and others, Mamaearth stands in a steady position. In an interview, when asked about the fight against such brands, Varun Alagh – CEO and founder of Mamaearth, replied, “Mamaearth provides superior and safer products as compared to any other brand in the market.”
It works on educating the consumer about the chemicals involved in the composition of other products in the market and elaborates on the benefits of using their products.
The customer acquisition strategy is entirely based on digital content. Therefore, it enlightens the consumer on the issues their products tackle and how their products are best in the market.
Mamaearth is committed to transparency and provides detailed ingredient lists, product information, and testimonials from satisfied customers on its website. This commitment to openness helps customers feel confident that they are making informed decisions about their purchases.
Mamaearth has obtained various certifications and affiliations, such as MadeSafe, Allergy UK, PETA, and ECOCERT, to validate its claims of product safety and quality. These certifications provide third-party validation of the brand’s commitment to natural ingredients and safe manufacturing practices.
Mamaearth is committed to social responsibility and supports various environmental and social causes. This commitment to giving back helps the brand connect with its customers on a deeper level.
Growth and Distribution Strategy
Mamaearth began as an online brand, utilizing e-commerce platforms to attract a larger audience. However, they gradually increased their distribution methods by entering offline retail and partnering with physical businesses. Mamaearth was able to cater to varied consumer tastes and increase its reach across India and globally because of its omnichannel approach.
Mamaearth’s growth has not been limited to India. They have strategically expanded their presence beyond borders, entering markets like the United States, the United Kingdom, and the Middle East. This internationalization has further fueled their growth, allowing them to cater to a global audience seeking natural and toxin-free personal care products.
Mamaearth’s IPO
Information About Mamaearth’s IPO
The one thing to know about Mamaearth company is that Honasa Consumer Limited, the parent company, had an Initial Public Offering (IPO) in October 2023. The IPO was oversubscribed by 7.6 times, raising ₹1,701.44 crores (US$209.7 million). The shares were listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) on November 7, 2023.
The IPO was priced at ₹308 to ₹324 per share. The minimum order quantity was 46 shares. The IPO was open for subscription from October 31 to November 2, 2023.
The IPO was led by Qualified Institutional Buyers (QIBs), who subscribed 11.5 times their allotted quota. Retail investors subscribed 1.4 times their allotted quota, and non-institutional investors subscribed 4.02 times their allotted quota.
Mamaearth is a brand that comes in the need of every parent, and over the years, it has grown into a massive 100-crore company. It is certified by Made Safe, a US-based non-profit organization that majorly focuses on human health and develops products that are absolutely free of any toxic chemical composition and entirely natural.
Their products are clinically tested for hypoallergenic toxins, dyes, artificial fragrances, or anything that can harm the consumer. Last December, the company gained the status of a unicorn, with the fund gathered of $37.5 million. Stay tuned for more content!
FAQs
What is special about Mamaearth?
Mamearth is one of the few D2C skincare brands in India that provides toxin-free products for babies. It is also one of the 1st Asian brands with a “MADE SAFE” certification.
When was Mamaearth launched?
Mamaearth was launched in 2016 by Varun Alagh and Ghazal Alagh when they couldn’t find any toxin-free products for their baby.
Mamaearth is from which country?
Mamaearth is an Indian unicorn brand headquartered in Gurugram, Haryana. The parent company of Mamaearth is Honasa Consumer Pvt Ltd.
Mamaearth has how many product SKUs?
Mamaearth had 225 SKUs at the end of the six-month period ending September 2022.
Mamaearth is an Indian company engaged in selling Health, Wellness and Fitness products. The company was founded by Varun and Ghazal Alagh in the year 2016 and is headquartered in Gurgaon. It grew exponentially and reached a net worth of INR 115 crore in just four years.
Mamaearth is the flagship brand of Honasa Consumer Limited, which started as a digital-first consumer brand. Its other brand portfolio includes brands such as BBlunt and Aqualogica. The brand is planning to launch an IPO and has filed the Draft Red Herring Prospectus (DHRP) with the Securities and Exchange Board of India (SEBI) on December 20, 2022.
The company has proposed an IPO worth INR 2900 crores. The IPO will consist of a fresh issue of shares worth INR 400 crores and an Offer For Shares (OFS) of approximately 46.8 million shares. The funds raised through the IPO will primarily be used for improving brand visibility and advertising as well as opening exclusive brand outlets.
The company’s founders Varun and Ghazal Alagh along with other investors like Sofina, Fireside Ventures, Evolvence India, Stellaris and angel investors like Kunal Bahl, Rohit Bansal, Rishabh Mariwala and actor Shilpa Shetty will sell a part of their stakes in the company through the OFS.
Mamaearth’s Shareholding Pattern and the Angel Investments in the Startup
The list below gives a detailed view of the angel investments in Mamaearth.
Angels
Invested
YOI
Valuation
Suhail Sameer
₹15 lakh
2016
$2 million
Vijay Nehra
₹15 lakh
2016
$2 million
Shashank Shekhar
₹15 lakh
2016
$2 million
Kunal Bahl
₹69.6 lakh
2017
$5.16 million
Rohit Bansal
₹69.6 lakh
2017
$5.16 million
Shilpa Shetty
₹75.1 lakh
2018
$4.85 million
The Grey Area
There are several concerns floating on social media regarding the high valuation of Mamaearth. The company which was valued at INR 120 crore in January 2022, is seeking a higher valuation of INR 300 crore through its IPO. This target valuation is almost a thousand times higher than its registered profits.
Mamaearth’s Financials in FY22
The company does not have a consistent record of profitability. While it posted a revenue of INR 932 crores with a net profit of INR 14 crores at the end of FY22, it registered a loss of INR 1332 crores in FY21 and INR 428 crore in FY20. In the six months ending September 2022, Honasa Consumer posted a revenue of INR 722 crore with a net profit of INR 3.6 crore. Apart from this, Honasa has also recorded a high advertising spend. In FY22, the company spend approximately INR 391 crore on advertising, which is 40% of its revenue. It has spent a similar percentage of its revenue on advertising in FY21, FY20 and the six-month period that ended in September 2022.
All this information has led to a lot of speculation about the price MamaEarth will set for its IPO.
Sunil Damania, Chief Investment Officer of MarketsMojo says – “We doubt that management will go ahead with the higher price because there has been a lot of backlash on social media, especially given the amount of money Mamaearth is asking; whether you look at the market cap to sales ratio or the price to earnings ratio, which appears to be a little high.”
Tech stocks globally are witnessing a downturn and many IPOs in the recent past have failed to maintain their initial high valuations, falling significantly since their listing. Some prime examples include Zomato, Paytm and Nykaa.
Sunil Damania continues – “Something similar could occur if Mamaearth opts for such a high valuation. However, these are all speculative at the moment because neither the merchant banker nor the company has confirmed that they will proceed with this pricing.”
Anirudh Damani, Founder of Artha Group has a different take. He says – “I am jittery about all IPOs where more than 25% of the money getting raised does not go to the business i.e., it is an OFS from early investors and celebrity backers of the platform. I have understood that almost 80% of this IPO will go towards OFS which does not bode well for public market investors. It will be challenging to see any upside in the stock price with so many questions on super-premium valuation that will primarily provide exits to current shareholders.”
How an IPO Is Valued or Priced?
An Initial Public Offering or IPO listing is when a private company issue shares publicly in the stock market for the first time. This is done either to raise more funds for expansion or to recover from losses or debts. An audit is conducted for the company where all data regarding the company’s financials is carefully scrutinized. This data includes the company’s assets, liabilities, revenue generation, market performance, etc.
There are several methods in the IPO valuation process to define share value. These methods are
Relative Valuation through which the company’s share value is measured by considering the value of similar companies
Absolute Valuation that measures the strength and financial status of the company
Discounted Cash – Based Valuation that analyses expected cash flows, future performance, investment, potential revenue sources and more
Economic Valuation considers various parameters like the business’s residual income, debts to be paid, assets value owned and liabilities, risk-bearing potential, etc.
Price-to-Earning Multiple Valuation that compares the company’s market capitalization to its annual income.
There are various factors that affect the price of shares offered in an IPO. In relation to Mamaearth, these factors are:
Financial Performance Over the Past Few Years
Mamaearth’s financial performance has been erratic and it has not been in sustainable stable growth.
Share Market Trends
Most of the tech stocks have failed to maintain their high valuations and have seen sharp declines in the recent past.
Number of Stocks Issued by an IPO by a Particular Company
The biggest concern is the OFS offer which is being seen as an exit strategy by many of the promoters of the company.
Company’s Potential Growth Rate
The amount raised from the IPO will be used to increase brand awareness and advertising but there is no clear direction.
Company’s Business Model
Mamaearth is primarily a digital-first company. Its Return on Ad Spends (ROAS) has not improved in the last three years suggesting it has very few returning consumers.
Recent Market Price of Companies Listed on the Stock Exchange
Tech companies like Paytm, Zomato and Nykaa have all failed to sustain their stock prices.
Conclusion
MamaEarth is showing great courage by announcing an IPO at a time when tech stocks are witnessing a global slump. However, rising digital penetration, high disposable income, as well as growing awareness in the beauty and personal care segment give the company room for growth and expansion in the future.
FAQ
What is an IPO?
IPO [Initial Public Offering] takes place when a private company issues share publicly for the first time in the stock market. Once the company declares an IPO, the stocks no longer remain private and are collectively owned by all shareholders.
What are the Factors Affecting IPO Valuation?
Here are several major factors that affect the price of the shares offered in an IPO
Company’s financial performance over the past few years
Share market trends
Number of stocks issued in an IPO by a particular company
Company’s Potential Growth Rate
The Recent Market Price of Companies Listed on the Stock Exchange
How can you tell if an IPO is good or not?
Thoroughly review the company’s business model, management credentials, and historical performance. A good starting point when evaluating the best IPO to buy is the red herring prospectus. It contains most of the information you need to evaluate the company.
Is Mamaearth a private company?
Yes, it is a Gurugram-based D2C babycare and skincare unicorn. Mamaearth could be converted into a public company as it readies for an IPO.
In this fast-paced world, where the speed of women is always compared with that of men, long gone has the time when women lagged. The exponential growth of women in all possible areas of interest has proven how unstoppable feminine energy has become. One of the many fields where women are leaving a significant mark is the startup industry. With every passing year, there is a notable amount of growth in the unicorns led by women. The entrepreneurial venture is welcomed more warmly than ever with every passing quarter.
MyGlamm’s Valuation: $1.2+ Billion Year Founded: 2014 Unicorn Status: 2021
MyGlamm – Women-Led Startups That Turned Unicorns
Founder and CEO of POPxo, Priyanka Gill is now a successful entrepreneur, journalist, and angel investor. She started her journey by starting a digital community platform for women- POPxo. It was started in 2014 to engage millennial women with content related to Personal care, beauty, and Fashion. In no time POPxo emerged as the largest digital platform with roaring popularity. Later in 2021, Gill joined Darpan Sanghvi (MyGlamm) and Naiyya Saggi (BabyChakra) to establish “The Good Glamm Group” to form a house of brands. They further strengthen each other’s position in the beauty and personal care market to rule the Digital FMCG industry.
Naiyya Saggi – BabyChakra, MyGlamm (The Good Glamm Group)
The Good Glamm Group Valuation: $1.2+ Billion
Year Founded: 2021 Unicorn Status: 2021
Naiyya Saggi – Founder, The Good Glamm Group – Women-led Unicorn Startups of India
Also known as the founder of BabyChakra, who is also the Co-founder and the President of MyGlamm, and the Co-founder of The Good Glamm Group along with Priyanka Gill, Naiyya Saggi is counted as one of the most successful young woman entrepreneurs in India. She completed her MBA from Harvard Business School, where she was a Fulbright and J.N.Tata scholar, after obtaining a BALLB (Hons). Saggi served as a Business Analyst at McKinsey & Company, and eventually, after completing her MBA, she founded BabyChakra, then became the Co-founder and President at MyGlamm, and eventually became the Co-Founder of The Good Glamm Group, when Darpan Sanghvi, Priyanka Gill, and Naiyya Saggi from came together to establish The Good Glamm Group in September 2021.
Falguni Nayar – Nykaa
Nykaa’s Valuation: $12.86+ Billion Year Founded: 2012 Unicorn Status: 2020
Nykaa’s name stands with one of the very few female-led profitable unicorns. Falguni Nayar, an IIM Ahemdabad alumni quit her job at the age of 49 in 2012 to finally set a rolling pin for her entrepreneurial journey that was sitting in her head for a long time. Nykaa gained instant popularity among Indian women due to its wide range of beauty segments. The Falguni Nayar-led company turned unicorn in 2020 and is hailed as the first women-led unicorn startup in India. After the Nykaa IPO, which was oversubscribed 81.78 times, the company managed to catapult its valuation to more than $12 bn, and Falguni Nayyar, who owns more than 53% stakes in the company, turned to be the richest self-made female Indian billionaire.
Upasana Taku is the founder of MobiKwik, one of the most prominent Indian payment service providers that offer mobile phone-based payment systems and digital wallet services. Bipin Preet Singh and his wife, Upasana Taku, founded MobiKwik in 2009, the valuation of which reached $1 bn in October 2021.
Upasana Taku is a Stanford University graduate who completed her MS in Management Science and Engineering from the same university. Starting as a Business Analyst, Product Management at HSBC, Upasana founded MobiKwik, where she is still serving the role of the Chairperson, Cofounder and COO. Taku was also the Senior Product Manager at PayPal, Consultant at multiple companies and the Co-founder of ZaakPay.
Divya Gokulnath – Byju’s
Byju’s Valuation: $18+ Billion Year Founded: 2011 Unicorn Status: 2018
Divya Gokulnath, a businesswoman and a teacher, happens to be the co-founder and the Director of Byju’s. Byju’s is an Indian educational technology (EdTech) online tutoring firm. It was founded in 2011 by the power duo – Byju Raveendran and Divya Gokulnath. Over the years the tutoring app has evolved and grown into one of India’s most valuable unicorns with a current valuation of $18 billion. Divya Gokulnath has played a key role right from the beginning by offering the expertise she had as a former teacher.
Ghazal Alagh – Mamaearth
Mamaearth’s Valuation: $1.2+ Billion Year Founded: 2016 Unicorn Status: 2022
Founder of Mamaearth, Ghazal Alagh, and her story has caught the eyes of many Indians after starring as an investor in the reality show called shark tank. Her brand, “Mamaearth” offers a wide range of skincare, and beauty products and is very popular among Indian households. Mamaearth was founded by Ghazal and her husband Varun Alagh in the year 2016. Her goal is to make the beauty industry chemical toxicity free.
Rajoshi Ghosh – Hasura
Hasura’s Valuation: $1+ Billion Year Founded: 2017 Unicorn Status: 2022
Rajoshi Ghosh happens to be a National University of Singapore and Stanford Ignite alumni. Hasura went from being a home-cooked food delivery company to a Software-as-a-service company. It was founded by Rajoshi Ghosh and Tanmai Gopal in the year 2017. In 2022, it entered the unicorn club soon after raising $100 million in series C funding.
Gazal Kalra – Rivigo
Rivigo’s Valuation: $1.07+ Billion Year Founded: 2014 Unicorn Status: 2019
Gazal Kalra along with Deepak Garg visioned revolutionizing truck driving in India by establishing Rivigo Services. It was founded in 2014. It is a tech-enabled Cargo service offered in India. In the year 2019, the company turned into a unicorn. Gazal quit the company’s board in 2018. She is currently working on her new startup, which is in stealth mode.
Dr. Garima Sawhney is a Gynecologist by profession. She, along with Harsimarbir Singh and Vaibhav Kapoor founded Pristyn Care in the year 2018. Pristyn Care focuses on availing surgeries and treatment with ease to the masses. The company has a widespread partnership with over 500 hospitals spreading out in the major cities of India. The healthcare-tech startup entered the $1 billion club when it raised around $100 mn in funds via its series E round in December 2021.
Ofbusiness’ Valuation: $1+ Billion Year Founded: 2016 Unicorn Status: 2022
39-year-old Ruchi Kalra has been into the startup game for quite a long time. Ofbusiness was founded by Ruchi and her husband Ashish Mahapatra in the year 2016. The company is one of the best raw materials supplying startups in India, which is known for offering a wide range of products at the lowest prices. Ofbusiness turned unicorn in July 2021 and is currently valued at $1.5 bn. The financial services arm of Ofbusiness, Oxyzo is also a unicorn that achieved the unicorn valuation in March 2022. Kalra recently made a statement that her company is all set for its Initial Public Offering.
Smita Deorah – LEAD
LEAD Valuation: $1.1+ Billion Year Founded: 2012 Unicorn Status: 2022
Smita Deorah – Co-CEO and Co-Founder of LEAD
Smita Deorah is the Co-Founder & Co-CEO of LEAD. It was founded in 2012 by Sumeet Mehta and Smita Deorah. LEAD is a technology-based school Ed-tech company that focuses on transforming the education system in India, ensuring high-quality education for children. LEAD is also a unicorn, and now under the guidance of Smita Deorah, it is giving some of the major players like Unacademy, Byju’s, UpGrad, Vedantu, and Eruditus a cut-throat competition.
Ambiga Subramanian – Mu Sigma
Mu Sigma’s Valuation: $1.5+ Billion (2018) Year Founded: 2004 Unicorn Status: 2016
Dhiraj Rajaram, Ambiga Subramanian’s ex-husband, launched Mu Sigma in 2004. After their divorce, Dhiraj took over as CEO, in addition to being the former CEO of a data analytics service provider with offices in Bangalore (Karnataka) and Illinois (Chicago). Ambiga is also India’s very first youngest rich woman who is self-made. With her devotion and expertise, she turned the company into a high-profit-making machine, establishing herself as one of the first self-made women to turn a company into a unicorn in no time. Mu Sigma has last been valued at $1.5 billion, in 2018. The former founder CEO, COO, Head of Innovation, and Head of Talent.
Conclusion
In the Indian startup ecosystem, women have broken the glass ceiling of prejudice and have proved themselves as able leaders, guiding their companies to unicorn valuations and letting them achieve many feats. It is crystal clear that over the recent years, this number kept growing several folds. From Ghazal Alagh’s “Mamaearth” to Priyanka Gill’s “The Good Glamm Group” and Falguni Nayyar’s “Nykaa”, the women entrepreneurs of India have left no stone unturned to bring the companies they’re leading to greater heights. Indian female entrepreneurs have surpassed the limits of age, qualification, and many other stereotypes and climbed the ladders of great opportunities fearlessly. According to surveys, with women leaders sitting at the top, the culture of the companies also has improved significantly over time.
FAQs
Who are the top female entrepreneurs in India?
A list of the Top Female Entrepreneurs in India are:
Falguni Nayar
Naiyya Saggi
Priyanka Gill
Ghazal Alagh
Upasana Taku
Kiran Mazumdar Shaw
Vandana Luthra
Indra Nooyi
Vani Kola
Radhika Ghai Aggarwal
Supriya Paul
Malini Agarwal
Which are the top startups led by women?
Top women-led startups that turned into unicorns are:
MyGlamm (The Good Glamm group)
Nykaa
Byju’s
MobiKwik
Mamaearth
MobiKwik
Hasura
Rivigo
Pristyn Care
Ofbusiness
LEAD
Mu Sigma
Who are the women who lead billion-dollar startups in India?
Some of the most prominent billion-dollar startups led by women in India are:
Priyanka Gill – MyGlamm (The Good Glamm Group)
Naiyya Saggi – The Good Glamm Group
Falguni Nayar – Nykaa
Upasana Taku – MobiKwik
Divya Gokulnath – Byju’s
Ghazal Alagh – Mamaearth
Rajoshi Ghosh – Hasura
Gazal Kalra – Rivigo
Dr. Garima Sawhney – Pristyn Care
Ruchi Kalra – Ofbusiness
Smita Deorah – LEAD
Ambiga Subramanian – Mu Sigma
How many unicorns does India have now?
India has over 100 unicorn startups, as of May 2022.
Which are the women-led highest-valued startups in India?
Nykaa is the highest valued startup in India led by Falguni Nayar with a valuation of $12.86 Billion.
Ghazal Alagh is a charming and successful businesswoman who co-founded and built the beauty, child and skincare brand named ‘MamaEarth’. She was also one of the seven sharks from the Shark Tank India show. Though her presence in the show was limited, Ghazal made several investments and encouraged the upcoming entrepreneurs.
In an unsuccessful search for a skincare solution for her kid, Ghazal ended up founding her own baby and skincare brand. Her love and passion for business and branding strategy made Ghazal an inspiring businesswoman. Now she’s passing hands to lift other budding entrepreneurs to develop their startups. Let’s know a little more about Ghazal Alagh and her investments in startups.
Ghazal Alagh was born in Gurgaon, Haryana, on the 2nd of September 1988. She is a BCA (Information Technology) graduate from Punjab University, where Ghazal Alagh also completed her Post Graduation.
Her love for arts made her attend several intensive courses on figurative painting and modern arts at the New York Academy of Arts. She worked as a corporate trainer at NIIT before founding MamaEarth.
Ghazal Alagh with Varun Alagh
Ghazal got married to Varun Alagh in 2011. After the birth of their first child, the couple realized that there were no toxin-free baby care products available on the market. This compelled Varun and Ghazal to start their own company.
They began with toxin-free baby products and later expanded to beauty, body, hair, and skincare solutions for all age groups. The company ‘MamaEarth’ has received multiple recognitions for its quality and growth over the years.
Here is the list of all startups funded by Ghazal Alagh:
Uvi Health
Uvi Health Logo
Uvi Health is a healthcare solution platform that offers medical and other wellness assistance to women. The company offers personalized support from experts. Uvi aids women in taking care of their mental wellbeing, PCOS-related issues, and physical fitness. They organize doctor and health coach consultations for comprehensive expertise solutions.
Ghazal Alagh made an investment in Uvi Health in July 2021. It was a Pre Seed Round led by Titan Capital. A sum of ₹2.47 crores was invested in the company by Ghazal along with five other investors.
The Sass Bar
The Sass Bar Logo
The Sass Bar is a startup that is involved in the manufacturing of creative soaps. The company produces soaps that look and smell like desserts. The products are made up of completely natural ingredients.
Other than desserts The Sass Bar manufactures soaps in the form of seascape, retro, cafe, festive and celestial collections. There is also a bulk gifting option along with curated gift cards.
The Sass Bar’s innovative and creative idea fascinated Ghazal Alagh. She invested ₹25 lakhs for 17.5% equity in the company.
Sunfox Technologies
Sunfox Technologies Logo
Sunfox Technologies or Spandan is a company that creates compact and portable devices that help people to track their ECG, Sugar, and BP levels. This startup aims at providing easy-to-use healthcare monitors at affordable costs.
Sunfox Technology’s goal is to reduce the death rate caused by undiagnosed health failures. Constant monitoring of our health reduces this and Spandan’s compact devices help in achieving this.
Ghazal Alagh made an investment of ₹20 lakhs in return for 1.2% equity in Sunfox Technologies.
The 19-year old Nihaal Singh Adarsh, the founder of Watt Technovations, appeared in Shark Tank India. He got the attention of all Sharks through his passion for innovation and the investment he demanded from them.
Adarsh pitched his idea of creating ventilated PPE kits but the sharks turned down his idea. Instead, they encouraged him to keep innovating by providing him with their support and the asked investment. Watt Technovations demanded a fund of ₹101 for 2% equity.
Ghazal Alagh contributed her share of ₹25 for 1% equity in the startup.
Humpy A2
Humpy A2 Logo
Humpy A2 is an organic dairy product startup. The company offers nutritious, pure, and fresh dairy products. In addition to it, Humpy A2 sells a few groceries like dals, rice, millets, honey, oil, etc., All their products are USDA, FSSAI and A2 certified.
Humpy A2 not only aims at feeding people healthy but is also determined for safe and green earth. The company is trying every means to reduce plastic usage and go environment friendly.
The founders managed to convince Ghazal Alagh and secured a sum of ₹33.33 lakhs for 5% equity in the company.
Gold Safe Solutions Industries
Safe Solutions Industries manufactures anti-suicidal ceiling fan rods that prevent suicides by hanging. The man behind this invention is Sharad Ashani and he pitched his idea in Shark Tank India.
The founder claims to have installed over 50,000 anti suicidal rods in hotels, hospitals, jails, hostels, etc., His noble mission to reduce hanging deaths by his Gold Life Venture received a good reception from the sharks as well as the public.
Gold Safe Solutions Ind. received a sum of ₹16.67 lakhs from Ghazal Alagh for 10% equity in the company.
Wakao Foods
Wakao Foods Logo
Wakao Foods is a Jackfruit based food manufacturing startup from Goa. The company sells ready-to-cook and ready-to-eat foods with no added preservatives. Wakao Foods also produces vegan food varieties made from Jackfruit. The founder’s long-term goals and vision towards his business were so clear. Ghazal Alagh offered to invest ₹25 lakhs for 7% equity in Wakao Foods.
Nomad Food Project
Nomad Foods Logo
Nomad Food Project is another food manufacturing startup that sells bacon-related jams and relishes. Bacon is the core food item used in making all other dishes made by this startup. The varieties and flavours Nomad Foods bring in their products and the marketing technique they used to sell them are excellent.
The founders convinced Ghazal Alagh and bagged an investment of ₹10 lakhs for 5% of the company’s equity.
Though MamaEarth stationed itself firmly in the market, Ghazal Alagh became well-known only after she appeared as a Shark in the Shark Tank India. She was the youngest shark in the show. Ghazal’s journey as an investor has just begun. She has made most of her investments in Shark Tank India. Ghazal’s enthusiasm for budding startups and entrepreneurs proves that she will invest more in the future.
FAQs
Who is Ghazal Alagh?
Ghazal Alagh is a charming and successful businesswoman who co-founded and built the beauty, child, and skincare brand named ‘MamaEarth’.
When and where was Ghazal Alagh born?
Ghazal Alagh was born in Gurgaon, Haryana, on 2nd September 1988.
How much has Ghazal Alagh invested in startups?
Investments in startups are estimated to be around ₹1.2 crores in Shark Tank India and an undisclosed amount in Uvi Health.
What is the net worth of Ghazal Alagh?
Her net worth is estimated to be around $20 million.
Shark Tank is one of the most famous reality shows. Originating in the west, it has become such a sensation that people are adopting the idea. Many are adopting the idea and making their own country versions of the show. Recently the show came to India in a never seen before avatar.
Last December, SonyLiv launched ‘Shark Tank India’ and what happened next was awe-striking. Viewers all over the country were glued to their screens to finish every episode of the first season ever. The show amassed amazing views and it was so vital that everyone seemed to be talking about Shark Tank India. A great achievement for the show and all the participating parties in the venture.
The show format is simple and easy. There are judges, who are all entrepreneurs in different fields. Who has disrupted one market or the other? Then there are participants or volunteers who are Indian and aspiring entrepreneurs. They pitch their ideas to sharks with the hope that they will like the idea and invest in the idea.
The persuasion of equity and capital makes up a whole episode. The show’s contestants made their pitches and many benefitted from the investments from sharks but what did sharks get? In this article, we will find out the possible benefits that were presented to sharks from Shark Tank India. Let us read on.
Shark Tank is one of the most famous shows among startup enthusiasts. Not just people who are into entrepreneurship, but others too love watching pitchers pitch their ideas to big sharks (Established entrepreneurs).
The show took the popular path in America and was a very liked show. The show was made into a series of episodes. Each episode had some candidates who pitch their ideas to investors for raising capital. It initially premiered in August 2009 and since then has managed to amass a lot of views and attention.
The American counterpart was an adaptation of a Japanese show called, the Dragon’s Den. Originally called the Money Tigers in 2001. The show format involved entrepreneurs presenting their ideas to a panel of judges called sharks. Who then decides, communicates and persuades them to invest in those ideas.
Everything About Shark Tank India
Starting in December 2021, Shark Tank India was a first of its kind experiment in Indian television. The show format was almost the same as the original shark tank America. Aspiring optimistic entrepreneurs from India pitch their business models and present their workings to established entrepreneurs and investors. The panel of investors then decides after a lot of discussion about business, to invest money or reject their idea.
Shark Tank India
Each pitch begins with the participants asking for some amount of capital in return for a percentage of ownership in their business. The task that they make, sets up the valuation of their venture. The sharks try to negotiate the valuation to be in context with real numbers. Those metrics include numbers like revenue, previous deals, consumer rates and all sorts of expenses.
Valuation is one key concept that sets the belief that the judges or investors need to know whether the business or startup has the ability to stay afloat. The sharks need organisations that can be scaled and have an appeal to a large number of purchasers.
The judges try to figure out which businesses will be a good investment. They do that from negotiations and questions that they ask the participant entrepreneur. Judges are very particular about capital and numbers. This makes the show even more interesting. People love to watch them negotiate and persuade the participant for a good deal.
The judges of the first season were as follows,
Aman Gupta, The co-founder and Chief Marketing Officer (CMO) at boAt. BoAt is an earwear, audio products company.
Ashneer Grover, Former Co-founder and Managing director at BharatPe, the unified payments interface company.
Anupam Mittal, Founder, and Chief Executive Officer of Shaadi.com and People group. Shaadi.com is a popular matrimonial website.
Ghazal Alagh, Co-founder and Chief Executive Officer of MamaEarth, a wellness products company.
Namita Thapar, who is Executive director of Emcure Pharmaceuticals. She has expertise in the Pharma industry.
Peyush Bansal, Co-founder, and Chief Executive Officer of Lenskart, which is an eyeglasses company.
Vineeta Singh, Co-founder and Chief Executive Officer at Sugar Cosmetics. This popular company deals in cosmetics.
All of these companies are startups that were small at one point in time. These founders have acted as great leaders which helped these startups to get to the place where they stand. There are revenues flowing like water and valuations that reach the sky.
Shark Tank India aimed to collect these established entrepreneurs in one place. These experienced judges then judge the participants in the show for valuations, equities, and capital. This was something that was never seen before in the Indian television industry. Shark Tank India changed that forever, as it was able to garner great reviews. It created a fan following of its own.
The series, Shark Tank India, was immensely popular among the youth. As we all know that India is a youthful nation and youth is known to be creative. This show showcased the same, we saw amazing, creative business ideas.
Deserving participants got the paychecks and we all got the kick that we want from a reality TV show. But what did the sharks get? This is the question that we are trying to tackle. Let us see what opportunities the sharks got.
The Shark Tank India has made quite a buzz around the whole country. SonyLiv has managed to make a multi-bagger series out of this show. Everyone was watching it and appreciating the participants and their will to change something in society.
Visibility
If I ask you how many of you knew Ashneer Grover even before he became a judge at Shark Tank? Or Aman? Or Vineeta? Chances are that you would not know their name and faces. Only a few people who are deep into startups would know their names.
After coming to this platform of shark tank, all the sharks got immense visibility or popularity that is hard to get in this short span of time. It’s not that this is good for their character and personality and the work that they do but visibility helps in people recognising them at an instant.
With a leveraged position that all the sharks stand at. The visibility they gained gave them more power in their respective fields. More people know about them now. With this visibility, these sharks will be able to get recognised by a lot of future prospects and probabilities of profits. These benefits are not quite quick but will offer them a leveraged position in the future.
Investing Opportunity
Now, this was probably the best benefit to the sharks, no cap. This was as good a benefit to sharks, as it was a benefit to participants, if not more. All the sharks made investments in multiple startups with great potential.
All these sharks got more exposure for new startups from all over the country than probably any other investor in the country. This was the biggest benefit to the sharks. Here we will discuss how much each of the sharks invested during the show.
How the Sharks Benefited from Shark Tank India?
Viewers from all over the country got to know different startups but what about the sharks? What did they get?
Let us see what were the benefits to sharks of the Shark Tank.
Ashneer Grover
Ashneer Grover
Starting off with the most rational and straightforward judge, Ashneer Grover. He was the co-founder of BharatPe, which is a digital payments platform. He has been in the headlines since the inception of the show, Shark Tank India mainly due to all the controversies involving him, the Board of BharatPe and Kotak Bank. All of it finally ended with his resignation, which came in on February 28, 2022.
Apart from the headlines, he has been the investor for companies like the Whole Truth, IndiaGold, OTO Capital, and the Front Row. In the first season of Shark Tank India, the shark has invested a sum total of 5.3 Crore Rupees. The investment that he made was a result of a total of 21 deals, which is a good number for an experienced investor like Ashneer.
Anupam Mittal
Anupam Mittal
Anupam is another most loved judge of the show. He is the founder and the chief executive officer of a leading matrimonial website called Shaadi.com. Everyone liked the simple and straightforward attitude towards every pitch. He was not just the person behind Shaadi.com but he has built several successful ventures.
He has different interests and he has also produced two Bollywood movies. In the first season of the show, Shark Tank India, Anupam Mittal invested a sum total of 5.4 Crores to various startups which he found worthy. The investments that he made was a result of 24 deals that he negotiated on the premises of the show, Shark Tank India. He mentioned that he has always wanted to create opportunities for all the young entrepreneurs, as they will lay the first brick to the new India.
Namita Thapar
Namita Thapar
Another famous name from the show. Namita Thapar is one of the most successful women entrepreneurs in our country. She is the chief executive officer of Emcure Pharmaceuticals and recently became a judge at Shark Tank India. She is passionate about women in entrepreneurship, and she was also associated with different companies in the United States of America in various marketing and finance roles.
In the first season of Shark Tank India, this shark got an amazing opportunity to invest in various stage startups. She found potential in many startups and invested her capital in 25 deals. The sum total of the amount that she invested in startups was 10 crores. This is a good amount, even better than Ashneer and Anupam. She is an amazing investor with clear thoughts about her investment decisions.
Peyush Bansal
Peyush Bansal
Peyush was another judge with a huge fan following. He is humble and keeps a simple attitude, but is sharp in intellect. His hard work and determination have led him to realise his dream of Lenskart and create value for society. The stage at which he is now is a remarkable achievement in itself and he is worthy of it too.
Now he helps other entrepreneurs realise their dreams. In the show, Shark Tank India, he got this chance of investing his money and helping other startups to go ahead in their journey.
He utilised the opportunity and invested his 8.2 crores in various startup deals that he found potential in. Among all the pitches and negotiations, the amount that he invested was a result of 27 deals which he found to be a good investing opportunity.
Vineeta Singh
Vineeta Singh
Vineeta Singh, the co-founder and chief executive officer of SUGAR Cosmetics. She was one of the sharks in season 1 of Shark Tank India and had a blast of a season. After graduating from IIT Madras and IIM Ahmedabad, she got a decent offer for herself but declined the offer in order to go in the entrepreneurship direction.
As per the latest survey, Sugar cosmetics has been successful in creating a community of 5 million people. Her net worth stands at a whopping 300 crores. In the first season of Shark Tank India, this shark got the investment opportunity and she didn’t leave it.
She invested around 3 crores in various startups that had potential. A total of 15 deals were signed by this entrepreneur during the course of the first season of Shark Tank India. A true commemoration of statistics.
Aman Gupta
Aman Gupta
The meme guy of the Shark Tank India. This person is super chill and is equally sharp in his words. He is fun and does not shy away from saying what he thinks. Aman Gupta, The co-founder and Chief Marketing Officer (CMO) at boAt.
BoAt is an earwear, audio products company. He is the co-founder of boAt, which is the top earwear brand in India. on Shark Tank India, this shark got the opportunity of investing out his hard-earned money. Which will help the budding entrepreneurs with the fuel that they will be needing in their future.
This shark invested a total sum of seven and a half crores (7.5 crores). That amount of capital he invested was a result of 25 different deals on the show. He clearly knows the game.
Ghazal Alagh
Ghazal Alagh
She is not the most famous entrepreneur but the brand she has built really speaks for itself. Ghazal Alagh, the co-founder and chief executive officer of ‘Mama earth’. She is the mind behind this famous wellness brand. She got immense visibility because of the show and all of that she truly deserves.
In the first-ever season, she got the chance to be a shark in Shark Tank India and made deals in startups. Her estimated net worth stands at 148 crores in Indian Rupees. During the course of the show’s season One, the entrepreneur invested a sum total of 1.2 crores in various startups.
She made these investments in a total of 7 deals. She is sharp and simple as an entrepreneur. Her calculations and experience made her invest in good startups during the show.
There were obviously immense ripple effects after the show. Every young Indian household consumed the content that SonyLiv created and got to learn something. In an immensely big country like ours, it is imperative that people know how to create wealth in the longer term.
This show, Shark Tank India, in a sense created hype for the same. This is India wants to create things in real life. This is India which wants to create value for society.
Words like Margin, Valuation and Equities made their way to a middle-class household with the help of the show. The show garnered enough attention which will definitely help the next wave of new-age entrepreneurs. The show clearly entails all the learnings and a guide of valuations which the judges beautifully explained. The judges made a lot of efforts to pack their knowledge into nuggets of wisdom that can be easily consumed.
The judges showed the importance of good ideas and the need for innovation. They showed us that the country and the society of every place need some innovative ideas that have some value to them. Ideas that solve some real problems of the world.
We were entertained and enlightened by the industry expertise of all the judges on the show. Which showed every entrepreneur a correct way of doing things. All of that information in a fun and real sense with that of the world.
The show format was fun too, sharks have to figure out new ways to find out which company was worth the investment. They have to negotiate the actual valuation and also, choose the investment amount.
Interestingly, the Sharks have invested a total of over Rs 32.5 crore on Shark Tank India in season one. This money of investors will be the capital for new-age entrepreneurs. This will help them as fuel in their journey to the whole world. India has always innovated its way ahead in the world and will continue to do that if it is provided with opportunities. Platforms like these support the mission and investors like sharks, always fuel the passions which drive the new age of India.
Conclusion
The entrance of the shark tank in India was an immense and huge achievement. The business world of the country benefited a lot as much as the middle class of the society. The show made many technical jargons related to the business world easy for normal households. Shark Tank India in a complete sense made the youth knowledgeable in the aptitude of the capital world.
In this sense, the show proved a lot beneficial to everyone watching it and everyone participating in it. The wisdom that the judges shared on stage, really went on to guide new entrepreneurs in their future crucial decisions. All this help for free? Not entirely!
The sharks aka the established entrepreneurs and trailblazers made their share of benefit on the show. They got the deserved visibility in the entire country and got some really cool investment opportunities to invest their money in. The capital that they gave out to the budding entrepreneurs, will help them realise their dream of creating value for society.
The sharks will be rewarded in terms of capital appreciation and the credit of supporting development in the country. Which is a win-win situation for everyone. These sorts of opportunities are rare and are known as Positive sum games, which are positive for either side. These judges stopped many losses and misfortunes just by guiding the pitchers on the platform of Shark Tank India. In the long term, they helped all the startups, even those startups which didn’t get funding.
FAQs
Which shark invested the most in Shark Tank India?
Aman Gupta has invested the most in Shark Tank India, which was estimated at Rs 9.35 crore in over 28 deals.
How much are the Sharks paid on Shark Tank India?
Each shark is paid differently, the payment ranged from Rs 5 lakh to Rs 10 lakh.
What is the concept of Shark Tank India?
The entrepreneurs pitch their ideas to the sharks and then sharks decide to invest in their startups or not.
What is equity in Shark Tank India?
The equity in Shark Tank India is referred to as the equity shares on which depend the percentage of the company owned by the founder or investor.
What was the Shark Tank India Season 1 Episode 15?
The Shark Tank India Season 1 Episode 15 was titled as “It’s Time To Change”.
How many pitches were heard in Shark Tank India Season 1?
There were 198 pitches heard in total in Shark Tank India Season 1.
Who are all sharks in Shark Tank India?
The judges are known as sharks in the business reality show, Shark Tank India. They are all CEOs, founders, and key executives of different businesses in India across domains. Peyush Bansal (Founder and CEO of Lenskart), Namita Thapar (CEO of Emcure Pharmaceuticals), Ashneer Grover (Founder and MD of BharatPe), Vineeta Singh (Co-founder and CEO of Sugar), Aman Gupta (Co-founder and CMO of Boat), Anupam Mittal (Founder of People Group), Ghazal Alagh (Co-founder of MamaEarth).
The history of International Women’s Day dates back to 1908 when some 15,000 women marched in New York City in the name of better working hours, fairer pay, and the right to vote. Three years later in 1911, the first official IWD was celebrated throughout Europe as more than a million women walked challenging stereotypes for their rights and equality.
Women in India have not only stepped into the corporate world but have also begun to make a mark in entrepreneurship. Fast forward even 2020, Women Entrepreneurs comprise 11% of all entrepreneurs in India, which means there are only about 550 women-led companies out of more than 5,000 startups (NASSCOM reports). The number is small and growing slowly, the with all the policy and most importantly mindset changes coming up, we will soon see a rise in the same.
March 8 marks International Women’s Day, and we at StartupTalky, also wanted to celebrate the spirit of womanhood with the entrepreneurs who have come out breaking all the barriers to lead and change the world for the good! Let’s learn how these women are changing the entrepreneurial landscape and how!
Here is our small interview with Ghazal Alagh, Co-founder of Mamaearth.
ST – Why did you choose to be an entrepreneur? If not entrepreneurship, then what?
Ghazal Alagh – It was my life’s calling. My husband and I believed in our business idea so strongly that we decided to go ahead and quit our jobs. Being a mom entrepreneur has been one of the best experiences of my life, there is new learning, and a new adventure every day and I wouldn’t trade it for anything else!
ST – What Challenge did you face as a woman entrepreneur and How did you solve it?
Ghazal Alagh – The biggest challenge that I faced, like most women entrepreneurs, was managing the work-life balance, especially being a parent. There is only one way to solve it- never hesitate to ask for help, whether it is support for raising your startup or for raising your baby. We all need help and there is no shame in asking for it.
ST – What policies your company has adopted to support women at your workplace?
Ghazal Alagh – At Mamaearth, we understand the worth of women’s talent and time. In our endeavor to encourage more women to move forward in their careers, we have been promoting women-friendly HR policies including flexible working hours and mentoring support.
Trust yourself. Trust your idea! Find people who believe in your idea and request for their support.
ST – How can working women manage both, home and work?
Ghazal Alagh – Like I mentioned earlier, getting the necessary support is crucial to be able to manage both home and work. If you are a mother, then leave your baby with someone who you trust completely so that you can pay 100% attention to work. When at home focus completely on your family. But don’t forget to take out some me-time as well, that’s equally important!
ST – Do you think there must be at least one female co-founder, why?
Ghazal Alagh – Women are born entrepreneurs! They are much better at taking calculated risks and always tend to take the long-term view into consideration while growing their business. When you give birth to a baby, you also give birth to a mother. A woman, a mother is actually like the CEO of the household- juggling schedules, managing budgets, and solving problems. These are the same competencies required to be the CEO of a business.
ST – As a women entrepreneur, What kind of support have you got from the government? What would you like to suggest?
Ghazal Alagh – While in India, women have been conditioned as homemakers and lack the basic financial and emotional support from their own family members, the government has taken some initiatives to encourage women to start up their own businesses. Some of the schemes include Mudra Yojna, Annapurna scheme, and Mahila Udyum Nidhi Scheme.
ST – Why do you think still women’s contribution is too less in the Indian startup Community?
Ghazal Alagh – Yes, unfortunately, this is the case. While many women possess the necessary skills and talents required to run a startup, not many actually end up doing it. Socio-cultural barriers, living in a male-dominated society, and lack of financial support are some of the factors that hinder Indian women to take up entrepreneurship.
ST – If someone is stopping women to become an entrepreneur what advice do you have for her?
Ghazal Alagh – Trust yourself. Trust your idea! Find people who believe in your idea and request their support. Grow your network and take inspiration from other women entrepreneurs.
Mamaearth is an all-natural toxin-free brand specially formulated for soon-to-be or new mothers and newborn babies. They are Asia’s first made safe certified brand! They have everything from mosquito repellents to hair oils.
Arijit Karan
Dev Gupta
