StartupTalky

Tag: Honasa Consumer Private Limited

  • Ghazal Alagh: Redefining Success as a Mompreneur Visionary

    When a parent’s instincts to safeguard and nurture their child come into play, they can achieve remarkable things. This is precisely how Ghazal Alagh’s incredible journey began. Her deep desire to provide the finest products for her own children inspired her to create toxin-free and eco-friendly baby care items. Little did she know that this simple idea would eventually evolve into a colossal business worth INR 9,800 crores.

    This article talks about Ghazal Alagh’s story which teaches us that the love and determination of a parent can spark extraordinary success. We will also explore Ghazal Alagh’s success story, including her early life, history, net worth, story, childhood, personal life, education, achievements, and more.

    Ghazal Alagh Biography

    Name Ghazal Alagh
    Birthplace Haryana, India
    Born 2 September, 1988
    Nationality Indian
    Education BCA, Punjab University
    Position Co-founder, Chief Innovation Office
    Spouse Varun Alagh
    Company Honasa Consumer Ltd

    Ghazal Alagh – Early Life
    Ghazal Alagh – Career
    Ghazal Alagh – Mamaearth
    Ghazal Alagh – The Derma Co
    Ghazal Alagh – Personal Life
    Ghazal Alagh – Investments
    Ghazal Alagh & Shark Tank
    Ghazal Alagh – Awards & Recognitions

    Ghazal Alagh – Early Life

    Ghazal was born on 02 September 1988 in Gurgaon, Haryana. She was brought up in a middle-class setup.

    She finished her early education in Haryana and went on to pursue BCA in Information Technology from Punjab University. Later, she also did the Summer intensive course in Modern Art, Design, and Applied Arts from the School of Visual Arts and the Intensive Course in Figurative Art in Modern Art in 2013 from the New York Academy of Art.

    It is evident that she stood as an example to many of those young entrepreneurs who couldn’t get the opportunity to pursue their higher education in top B-schools and still have the confidence to become successful entrepreneurs.

    Mamaearth Founder Story

    Ghazal Alagh – Career

    Ghazal’s career began with NIIT as a Corporate Trainer, where she trained managers and engineers in coding languages and software from various IT companies. She started her career with a mere ₹1,200 per day. Here is what she said about this in her social media post,

    My first income was modest, earning Rs 1,200/day as a weekend corporate trainer. I recall the joy of taking my mom shopping and sharing a memorable dinner.

    She later ventured into a few other endeavors like founding Dietexpert & being an artist at Being Artsy.

    But her biggest jump came in the next part of her career which was started when she and her husband, Varun Alagh were searching for some toxin-free baby products for their child and realized most of the baby products in the Indian market were full of toxins and harmful ingredients.

    This sparked the idea of creating their own toxin-free, eco-friendly baby products and that led to the founding of Mamaearth under Honasa Consumer Pvt Ltd. in 2016.

    Mamaearth: Bringing Toxin-Free, Natural Skin Care Products To India
    Ghazal Alagh and Varun Alagh founded Mamaearth in 2016. Read on to know more about Mamaearth’s success story, business model, funding, and other aspects.
    StartupTalkyRishabh Rathi

    Ghazal Alagh – Mamaearth

    Mamaearth debuted with seven goods with an initial investment of ₹25 lakhs, under the parent organization Honasa Consumer Ltd., focusing mainly on baby care products.

    Later on, the brand expanded into skincare and cosmetics brands. The company houses brands like Ayuga, The Derma Co., and Aqualogica, including its investments in the salon firm BBLUNT, Momspresso, and the beauty brand Dr. Sheth’s.

    The D2C company, Mamaearth takes pride in being the first Asian brand with a “MADE SAFE” certification. The company is known to deliver completely toxin-free products. The company initially focused on the online marketplace, later expanding to its offline stores. The IPO of Honasa Consumer Ltd, the parent company of Mamaearth, was launched on October 31, 2023. During the subscription window, from October 31 to November 2, the shares were made available for purchase. The prices per share ranged from INR 308 to INR 324.

    Mamaearth’s parent company, Honasa Consumer, has lost 50% of its market value in just two months. In September 2024, its stock was priced at INR 541 per share, and the company was worth around INR 15,000 crore. But by November, the stock price dropped to INR 227 per share, and its market value fell to INR 7,300 crore, losing INR 7,500 crore in just two months. As a result, Mamaearth is now valued at less than $1 billion and is no longer considered a unicorn.

    List of 116 Unicorn Startups in India | Top Unicorns in India
    India has already seen 116 unicorn startups. Here’s an exhaustive list of all unicorn companies in India, including those that joined the unicorn club in 2024.
    StartupTalkyAnik Banerjee

    Ghazal Alagh – The Derma Co

    The Derma Co. is all about real skincare and hair care that actually works. They offer a range of products designed to tackle common skin issues like acne, dark spots and signs of aging—without the fluff. The Derma Co. is all about helping millennials feel confident in their skin and hair—because real beauty starts with taking care of yourself.

    Ghazal co-founded Honasa Consumer Pvt. Ltd. alongside her husband, Varun Alagh, bringing a fresh, digital-first approach to the Indian beauty industry. A mom-preneur turned industry leader, she played a crucial role in shaping brands like Mamaearth, The Derma Co., Aqualogica and Ayuga, catering to modern consumers through D2C (Direct-to-Consumer) strategies.

    The Derma Co.: Revolutionizing Skincare with Science and Innovation | Founders | Business Model
    The Derma Co. offers scientifically-backed skincare and haircare solutions designed to address everyday skin concerns, providing effective products for healthier, glowing skin. Learn more about The Derma Co.’s founders, Business Model, Revenue Model, Competitors, Future Plans, and more.
    StartupTalkyShevaughn Pimenta

    Ghazal Alagh – Personal Life

    Ghazal Alagh was born in Haryana in a middle-class family. She is married to Varun Alagh who is the co-founder of Mamaearth. The couple has two sons, Agasthya and Ayaan Alagh.

    After the birth of their first son, the couple searched for toxin-free baby care products and realized that the Indian market lacked such products. This led to the founding of Mamaearth which produces completely toxin-free baby care products.

    She did not leave her responsibility at just founding the company but also she personally did the trials of her own products.

    In one of her LinkedIn posts, she wrote, I still personally try every single product before it opens up for sale to our consumers. When Varun Alagh and I started our first brand Mamaearth, it was for our child and all the babies of India. We would never launch something we won’t use on our baby. And that paranoia has stayed with us as our core value.

    Ghazal Alagh shared insights on leadership, entrepreneurship, and work-life balance. She emphasizes empowering teams, learning from mistakes, and maintaining sustainable productivity. Advocating the “85% Rule,” she encouraged consistent effort over perfection to avoid burnout. She also highlighted the importance of work-life balance in managing motherhood and business. Below is her LinkedIn post:


    Ghazal Alagh – Investments

    ​Ghazal Alagh has invested in UnderNeat in March 2025, a shapewear brand launched by influencer-turned-actor Kusha Kapila. The seed funding round, which also saw participation from Fireside Ventures, is estimated to be between INR 8-10 crore, though exact figures have not been disclosed.

    Ghazal Alagh Investments
    Ghazal Alagh Investments

    Ghazal has made some significant investments as below:

    Announced Date Organization Name Funding Round Money Raised
    October 16, 2023 P-TAL Seed Round ₹4.33 crore
    June 21, 2023 Crib Seed Round ₹15 crore
    December 1, 2022 Leap.club Seed Round ₹9 crore
    October 11, 2022 Wishlink Seed Round ₹30 lakhs
    September 28, 2022 unScript.ai Seed Round ₹10 crore
    September 22, 2022 FS Life Series B ₹50 crore
    May 18, 2022 Bliss Club Series A ₹1.5 crore
    January 31, 2022 Humpy Farms Angel Round ₹1 crore
    July 19, 2021 Uvi Health Pre Seed Round ₹2.47 crore

    Ghazal Alagh & Shark Tank

    Ghazal Alagh - Shark Tank India, Judge
    Ghazal Alagh – Shark Tank India, Judge

    Ghazal Alagh has the pride of being one of the Sharks on the business reality show Shark Tank India Season 1.

    While talking about her experience in the show she says, I enjoyed talking to people and a pitch would last anywhere between 45 minutes to one hour and 15 minutes. You need to make an instant decision and it was both exciting and fun.

    Who is the Richest Shark in Shark Tank India?
    Shark Tank India season 4 is set to return with an all-new panel of judges. Take a look at the net worth and charges of all the sharks.
    StartupTalkyDamini Bhandary

    Ghazal Alagh – Awards & Recognitions

    • Ghazal was awarded the Business World 40 under 40 Awards in association with Businessworld for being a change-maker and corporate leader.
    • She was one of the women achievers who were honored at the 19th edition of Business Today’s ‘Most Powerful Women in Business’ event by Union Minister Smriti Irani.
    • She was among the 20 women enlisted on the Forbes 2022 Asia’s Power Businesswomen.
    • Alagh was named Women Entrepreneur of the Year 2021 by Entrepreneur India.

    In a social media post, Ghazal talks about progress and success in entrepreneurship,

    Progress is an everyday effort. I have seen budding entrepreneurs getting very frustrated, heartbroken, and confused when the results of their hard work sometimes don’t align with their expectations. But remember… progress is never linear. Even the tiniest of improvements, when applied consistently, realize their moment of breakthrough. So don’t give up. It takes vision to stay consistent till you achieve your desired result…

    Varun Alagh – Mamaearth Owner | Biography | Net Worth
    Varun Alagh and Ghazal Alagh are Co-founders of Mamaearth, a baby products company. Read about mamaearth owner and founder – Varun Alagh.
    StartupTalkyAnik Banerjee

    FAQs

    Who is Ghazal Alagh?

    Ghazal Alagh is the Co-founder or owner and Chief Innovation Office at Mamaearth.

    Which is the parent company of Mamaearth?

    Honasa Consumer Limited is the parent organization of Mamaearth.

    Who is Mamaearth CEO?

    Varun Alagh is the CEO of Mamaearth.

    How did Ghazal Alagh start Mamaearth?

    Ghazal Alagh co-founded Mamaearth in 2016 to provide safe, toxin-free baby care products after struggling to find suitable options for her child.

    What is Ghazal Alagh age?

    Ghazal Alagh was born on 2nd September 1988. She is 36 years old.

    What is Ghazal Alagh education?

    Ghazal Alagh finished her early education in Haryana and went on to pursue BCA in Information Technology from Punjab University. Later, she also did the Summer intensive course in Modern Art, Design, and Applied Arts from the School of Visual Arts and the Intensive Course in Figurative Art in Modern Art in 2013 from the New York Academy of Art.

    Who are Ghazal Alagh children?

    Ghazal Alagh and her husband Varun have two sons, Agastya and Ayaan.

    When was the IPO of Honasa Consumer Limited launched?

    The IPO of Honasa Consumer Ltd, the parent company of Mamaearth, was launched on October 31, 2023.

  • Honasa Adds Over 45K Stock Options to the ESOP Pool

    The awarding of 45,663 stock options under the employee stock option plan (ESOP) has been approved by Honasa Consumer Ltd., the company that owns modern FMCG brands like Mamaearth and The Derma Co. According to its BSE filing, the company’s nominating and compensation committee has authorised “a total grant of 45,663 stock options under Honasa Consumer Limited Employee Stock Options Plan—2018 (“ESOP—2018″) to the eligible employees.” The new stock options were worth INR 1.12 Cr based on the stock’s closing price on 17 January. The face value of each equity share is INR 10, and the exercise price is also fixed at INR 10. According to Honasa’s petition, an employee may use their vested options during their employment or within ninety days after their final day of employment. The allocation of 546,601 stock options under the same ESOP scheme was approved by the firm in September.

    Honasa Roped in Lokesh Chhaparwal as Senior Vice President

    Honasa hired Lokesh Chhaparwal as senior vice president of technology and engineering earlier this month, which coincided with the recent ESOP expansion. With an emphasis on using cutting-edge technological solutions to improve operations, Chhaparwal is expected to spearhead the organisation’s technological strategy. According to the corporation, his duties would include overseeing digital platforms, using SAP systems to optimise supply chain operations, and developing marketing technology to deliver individualised customer experiences. He will also supervise internal security protocols to protect information and guarantee operational effectiveness.

    Chhaparwal, a former AVP and Head of Engineering at Snapdeal, provides more than 13 years of experience in data strategy and product engineering. He will work out of Honasa’s Gurgaon office and support the company’s initiatives to use technology to build new products and engage customers.

    Further Developments at Honasa

    In terms of finances, Honasa reported a consolidated net loss of INR 18.6 Cr for the September 2024 (Q2 2025) quarter, compared to a net profit of INR 29.4 Cr for the previous year and INR 40.3 Cr for the June quarter prior. Honasa’s top line for D2C brands suffered as well, as operating revenue dropped by almost 7% to INR 461.8 Cr in the reviewed quarter from INR 496.1 Cr in Q2 FY24. Mamaearth, The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s are among the six beauty and personal care brands that make up Honasa’s product line. The company was founded in 2016 by Varun and Ghazal Alagh, a husband and wife team.

    In the midst of media stories about credit backlogs and unsold stock with distributors, Honasa had provided clarification on the extent of its remaining inventory. The company stated that, in contrast to the All India Consumer Products Distributors Federation’s claimed amount of INR 300 crore of near-expiry inventory, its distribution value chain contained a total inventory of INR 40.69 crore.

    Manipal Health Prepares $1 Billion IPO Backed by Temasek
    Manipal Health, backed by Temasek, is planning a $1 billion IPO and has begun seeking banker presentations to move forward.
    StartupTalkyNitin Konde

  • Varun Alagh: The Chief Dad and Co-Founder Powering Mamaearth’s Success

    Varun Alagh is the Co-Founder and Chief Dad of Honasa Consumer Private Limited, which established its first-ever baby nourishing brand, Mamaearth, in November 2016. The company is based in Gurugram, India. Mamaearth is declared Asia’s first MadeSafe-certified brand. Varun founded the toxin-free baby, beauty, hair, face, and body care brand Mamaearth with his wife, Ghazal Alagh, who plays the major role of Chief Mama at the company. As of January 6, 2025, Mamaearth’s market value is $928 million, with a stock price of $2.86 and 325 million shares.

    We will explore Varun Alagh’s success story, including his early life, history, net worth, childhood, personal life, education, achievements, and more.

    Varun Alagh – Biography

    Name Varun Alagh
    Born 1984
    Nationality Indian
    Education Delhi College of Engineering; XLRI Jamshedpur
    Profession Entrepreneur
    Position Co-Founder, Chief Dad & CEO, Honsasa Consumer Pvt Ltd (Mamaearth)
    Spouse Ghazal Alagh
    Sons Agastya Alagh & Ayaan Alagh
    Net worth $14.40 Million (2023)

    Varun Alagh – Early Life
    Varun Alagh – Education
    Varun Alagh – Personal Life
    Varun Alagh – Professional Life and Journey So Far!
    Varun Alagh – Investments
    Varun Alagh – Awards and Recognition
    Varun Alagh – Mamaearth’s IPO Launch

    Varun Alagh – Early Life

    After completing his studies, Varun joined Hindustan Unilever Limited in 2007. During the first year, he worked as a Business Leadership Trainee. He was a part of this one-year training program. Varun then spent six months in Marketing with Lakme and Lifebuoy. He spent another six months in Customer Marketing and Sales in North India.

    After completing his training for one whole year, he was employed as the Area Sales Manager of Hindustan Unilever Ltd., Delhi NCR, in May 2008. He was responsible for a 600 crore business through 29 people, spread across 22 categories under Home care, personal care, foods, and beverages.

    After two years, he was promoted as the Area Sales and Customer Manager at Delhi NCR and Rajasthan in 2010. He managed a team of 37 people with 67 customers, delivering a direct distribution of 55,000 retail outlets across Delhi and Rajasthan.

    After nine months, he was again promoted to the Regional Brand Manager Innovations South Asia- Deodorants. As a part of this role, he managed Innovations and communications for Sure/Rexona Deodrants in South Asia and Market development and digital strategy for Asia.

    He left Hindustan Unilever in March 2012 and joined Diageo PLC as the Senior Brand Manager – Smirnoff. This role assigned him the job of managing one of the world’s largest premium spirits brands, Smirnoff, which is India’s largest Vodka brand, too. Moreover, he looked over the above and below the line (ATL & BTL). This also included the Digital and On-trade activation for Smirnoff across India.

    He joined The Coca-Cola Company in May 2013 and worked as the Brand Manager for two years. Varun managed to deliver the brand business, market share, and equity targets through a collation of various marketing acts. Alagh was then promoted to Senior Brand Manager, where his role was to manage Customer Marketing for the Coca-Cola trademark across India and South-West Asian countries. He eventually left the company in November 2016, and it was in the same month that he started Honasa Consumer Pvt. Ltd., the parent of Mamaearth.

    Ghazal Alagh Success Story: Mamaearth Founder | Biography | Education
    Explore the inspiring journey of Ghazal Alagh, a visionary mompreneur redefining success. Join us in discovering how she seamlessly integrates mom and entrepreneur roles, leaving a lasting impact on the business world. Find out about Ghazal Alagh’s success story, including her early life, history, net worth, childhood, personal life, education, achievements, and more.
    StartupTalkyKanimozhi Sivakumar

    Varun Alagh – Education

    Varun Alagh - Mamaearth Owner
    Varun Alagh – Co-Founder, Chief Dad & CEO of Mamaearth

    Varun pursued a Bachelor of Engineering specializing in Electrical Engineering from the Delhi College of Engineering (2001-2005). He later earned a Post Graduate Diploma in Business Management (PGDBM) in Finance and Marketing from XLRI Jamshedpur (2005-2007).

    While Varun was completing his post-graduation degree course, he had a chance to work with companies like Colgate Palmolive, Havells Electric, Madura Garments, Maruti, and Nokia in the form of internships and LIVE projects.

    Varun Alagh – Personal Life

    Mamaearth Company Owners - Varun Alagh and Ghazal Alagh
    Mamaearth Company Owners – Varun Alagh and Ghazal Alagh

    He is married to Ghazal Alagh, who is the Co-founder and Chief Mama of Mamaearth. She looks after the product development, content, and community management of the company. Before that, she had worked in the IT corporate world. The couple has two sons. A son named Agastya had been diagnosed with a skin-borne disease called eczema since birth.

    Varun Alagh – Professional Life and Journey So Far!

    Varun worked with Unilever for four years and 11 months, i.e., from May 2007 to March 2012. Here, he got to learn how to add value to a brand. Varun also worked for another brand, Smirnoff, at Diageo PLC for one year and three months, i.e., from March 2012 to May 2013.

    He worked with the Coca-Cola company for three years and seven months, i.e., from May 2013 to November 2016. He excelled in building brand value for nine long years by working with several renowned companies.

    He founded Mamaearth in November 2016, providing a range of toxin-free baby skincare products. Both Varun Alagh and Ghazal Alagh had a suitable background in handling such a brand professionally, which was eventually developed due to personal reasons.

    When Varun and Ghazal realized that their newborn son, Agastya, had a skin-borne disease called eczema, his skin was allergic to a lot of substances and turned red and itchy when exposed to such chemicals. The couple had to look for toxin-free baby care products in the market. Varun Alagh’s net worth stands at $14.40 Million.

    Business Idea

    The doctor advised using only natural products to avoid the worsening of his condition, but Mr. and Mrs. Alagh found that most of the baby care products in India contained toxins in one form or another. Besides, they did not think it fit to compromise with the quality. Therefore, they had to request their relatives and friends traveling abroad to bring back toxin-free skincare brands for their children. According to Varun Alagh, Mamaearth was founded after they found no alternative for proper toxin-free brands for babies in India, and the US products were becoming an added financial burden.

    Mamaearth: Bringing Toxin-Free, Natural Skin Care Products | Success Story | Company Details
    Ghazal Alagh and Varun Alagh founded Mamaearth in 2016. Read on to know more about Mamaearth’s success story, startup story, business model, revenue model, products, company details, introduction, funding, information on competitors and more.
    StartupTalkyRishabh Rathi

    Co-Founder of Honasa Consumer Private Limited

    Honasa Logo
    Honasa Logo

    Honasa Consumer Private Limited is classified as a non-government company registered at the Registrar of Companies, New Delhi. The authorized share capital of the company is INR 3,400,351,400, and its paid-up capital is INR 1,363,495,490.

    Varun Alagh bought 1.8 lakh shares worth INR 4.5 crore in the company, according to stock exchange filings on December 3, 2024. He previously owned 31.88% of the company and now owns 31.93%.

    Varun is the Co-Founder, Chief Dad, and Get Stuff Done Officer at Honasa Consumer Private Limited. The company exists to provide honest, natural, and safe products. Mamaearth is the first brand of the company that focuses on reducing parenting stress by providing solutions to parent and baby problems in the form of safe, international standard products.

    The Directors of the company include Varun Alagh, Ghazal Alagh, Vettakkorumakankav Siva, Subramaniam Sita, Rahul Chowdhri, and Ishan Mittal. The company started with a combined investment of Rs 90 lakh by Varun, Ghazal, and a few of the angel investors.

    The Unique and Successful Business Model of Mamaearth
    Mamaearth’s amazing products helped them to reach great heights. They have understood their customer’s needs properly and served those needs in an excellent way.
    StartupTalkyDev Gupta

    Co-Founder of Mamaearth

    Mamaearth Logo
    Mamaearth Logo

    Varun serves as Mamaearth’s Co-Founder and Chief Dad, headquartered in Gurugram, India. He founded the company in November 2016, primarily as a babycare products brand, which saw good growth and thereby expanded to several other categories, including – Beauty, Hair, Face, and Body care, and currently targets a range of audiences, including babies, moms to be, and men above the age of 15 years too.

    Within two years of the startup, the company got a retail turnover of Rs 20 crore. By 2020, Mamaearth’s net worth was over Rs 100 Crore. The company eventually turned out to be the first unicorn in India in 2022 by raising $52 million on January 1, 2022.

    Mamaearth has its own website, where one can shop from a diverse range of body care, hair care, organic beauty, and baby care products. The baby care range of Mamaearth can also be accessed through various e-commerce platforms like Amazon, Firstcry, and Nykaa. It also has a presence across 120+ major cities in India.

    Famous Bollywood celebrity Shilpa Shetty, who herself is a mother of two babies, became the brand ambassador of Mamaearth in 2017. She believed that toxin-free products are the best. Thus, she invested around $250K in the company. Shilpa Shetty reportedly made about Rs. 45.14 crore after selling her 13.93 lakh shares during the Mamaearth IPO’s Offer-for-Sale phase. She still has over 2.30 lakh shares in the business, which are currently worth roughly Rs. 7.4 crore. Moreover, Mamaearth also raised other funding led by Fireside Ventures and Stellaris Ventures Partners.

    Mamaearth – Asia’s First Made-Safe Certified Brand

    Varun Alagh – Investments

    Varun Alagh has invested in numerous startups to date. The Co-founder has been noted for 40+ investments, the last of which came in on July 12, 2023, where he invested $1.04 million in GreenFortune.

    Name of the company Funding round Investment date
    GreenFortune Seed Round July 12, 2023
    Solar Ladder Seed Round May 03, 2023
    KikiBix Seed Round March 31, 2023
    AdmitKard Series A February 20, 2023
    Xeno Seed Round March 14, 2022
    One Impression Seed Round January 6, 2022
    Nestasia Series A December 15, 2021
    Shiprocket Series E December 10, 2021
    Pristyn Care Series E December 8, 2021
    Doss Games Pre-Seed Round December 6, 2021
    Early Steps Acacdemy Seed Round November 24, 2021
    Wiggles India Seed Round October 28, 2021
    BeepKart Seed Round September 22, 2021
    Ayu Health Series A September 15, 2021

    Varun Alagh – Awards and Recognition

    • He received the Business Unit President Award (December 2015) for being a lead member in the MIT ICE project for turning around FBO business in 2015 from the President of Coca-Cola India and Southwest Asia. Varun Alagh’s age was only 39 when he was honored with this achievement.
    • He was conferred with the Above & Beyond Award (September 2015) for going beyond the call of duty on an organization-wide project from the Leadership team of Coca-Cola India and Southwest Asia.
    • He received the Business Unit President Award (December 2014) for leading excellent ideation and execution in the Coca-Cola Zero launch in India from the President of Coca-Cola India South West Asia.
    • He was conferred with the I am a Diageo Award (March 2013) for excellent execution of the Smirnoff Nightlife Activation Nationally as the President of Diageo India.
    • He has been listed among the top managers in HUL for two years consistently.

    Mamaearth Marketing Strategy: Mamaearth Popularity Secret
    Read to know about the marketing strategy of Mamaearth, which made the brand successful. Know what marketing strategies it used to stand out from the crowd.
    StartupTalkyPoonam Chauhan

    Varun Alagh – Mamaearth’s IPO Launch

    Mamaearth’s parent company, Honasa Consumer, launched its Initial Public Offering (IPO) on October 31, 2023. The IPO was open for subscription until November 2, 2023, and was fully subscribed on the last day. The IPO price band was set at ₹308-324 per share, and the lot size was 46 equity shares. The IPO raised ₹1,701 crore.

    Honasa Consumer, the parent company of Mamaearth, has lost its unicorn status after its shares dropped by about 29% in November 2024. The shares closed at Rs 237.70 each, bringing the company’s total market value down to Rs 7,721 crore, or about $902 million. The company had filed for an IPO with a valuation of Rs 10,500 crore in November 2023.

    The IPO was a success, with the shares listing at a premium of 2% on the National Stock Exchange (NSE) on November 7, 2023. The grey market premium (GMP) for Mamaearth’s IPO was ₹31 on the day of listing, indicating a strong listing. The company’s strong brand recall, innovative products, and focus on digital marketing have been key factors in its success. Mamaearth is well-positioned to continue to grow in the coming years, as India’s beauty and personal care market is expected to reach ₹20,000 crore by 2025. Varun Alagh turned to social media to articulate his journey with Mamaearth so far:

    “The joy of building is just pure elation, it’s so much better than moaning, critiquing, regretting and most importantly inaction. This is a momentous occasion for us but in the journey of building it’s just another moment, we shall cherish it but move on to looking for more amazing moments as we build for decades to come. While we are here, thanks a ton everyone.”

    FAQs

    Is Mamaearth an Indian brand?

    Yes, Mamaearth is an Indian company and is based out of Gurugram, Haryana.

    Who are Mamaearth founders?

    Varun Alagh and Ghazal Alagh are the founders of Mamaearth.

    Who are the promoters of Mamaearth?

    Mamaearth promoters are husband-wife duo Varun and Ghazal Alagh, founded in 2016.

    Is Mamaearth chemical-free?

    All of Mamaearth’s products are 100% chemical-free. Mamaearth is the only “Made Safe” certified toxin-free brand in India, which is free of all known toxins that are banned in most countries.

    What is Mamaearth net worth?

    As of January 6, 2025, Mamaearth’s market value is $928 million, with a stock price of $2.86 and 325 million shares. For the year ending March 31, 2024, Mamaearth earned $238 million in revenue.

    What is Varun Alagh education?

    Varun pursued a Bachelor of Engineering specializing in Electrical Engineering from the Delhi College of Engineering (2001-2005). He later earned a Post Graduate Diploma in Business Management (PGDBM) in Finance and Marketing from XLRI Jamshedpur (2005-2007).

    What is Mamaearth founder net worth?

    The net worth of Ghazal Alagh, co-founder of Mamaearth is $20 million.

    Who owns Mamaearth?

    Varun Alagh and Ghazal Alagh are the co-founders and majority owners of Mamaearth.

    What is Varun Alagh age?

    Varun Alagh was born in 1984 and is 41 years old.

    Who is Mamaearth CEO?

    Varun Alagh is the chief dad and CEO of Mamaearth company.

    What is Varun Alagh net worth?

    The net worth of Varun Alagh is $14,40 million as of 2023.

  • Mamaearth’s IPO – A Beautiful Dream or Disaster?

    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.

    IPO Details of Mamaearth
    The Grey Area
    How an IPO Is Valued or Priced?
    IPO Valuation of Mamaearth

    IPO Details of Mamaearth

    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
    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
    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

    1. Relative Valuation through which the company’s share value is measured by considering the value of similar companies
    2. Absolute Valuation that measures the strength and financial status of the company
    3. Discounted Cash – Based Valuation that analyses expected cash flows, future performance, investment, potential revenue sources and more
    4. Economic Valuation considers various parameters like the business’s residual income, debts to be paid, assets value owned and liabilities, risk-bearing potential, etc.
    5. Price-to-Earning Multiple Valuation that compares the company’s market capitalization to its annual income.

    Mamaearth: Bringing Toxin-Free, Natural Skin Care Products To India
    Ghazal Alagh and Varun Alagh founded Mamaearth in 2016. Read on to know more about Mamaearth’s success story, business model, funding, and other aspects.
    StartupTalkyRishabh Rathi

    IPO Valuation of Mamaearth

    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.

    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.