We have seen a lot of success stories around the world but one that we can personally attest to is of Mamaearth that has even seen its founder come to the first season of SharkTank India. After the show, the success of this startup got even bigger and now they have been listed in the BSE which makes them the youngest unicorn in India to be listed at such an early age. Talking about the strategy of Mamaearth, they have always used the influencer channel to promote their products and they started by giving their products to YouTubers and asking for their feedback without resorting to paid promotions but later did them as well. Basically, the startup has become a unicorn mostly from word-of-mouth promotions.
Sajith Pai, a partner at Indian venture capital firm Blume, said, “It is just over five years since the Mamaearth seed round was announced. And the company is listing today. That is incredible speed of growth (and time to listing for a consumer products / brand company)!”. “When the round was announced the company was at about 15 crores runrate; post money was just under 100 crores (<7x rev to valuation multiple). Today rev = ₹1.5k crores and list price valuation = !7x still! Interesting – you would expect seed multiples to be higher than IPO multiples”. It is reported that the company founded by husband-wife entrepreneurs Varun Alagh and Ghazal Alagh, operates a portfolio of six distinct brands. Its eponymous main brand, Mamaearth, accounts for approximately 80% of its revenue in the fiscal year 2023. Honasa also operates The Derma Co, Aqualogica, and Ayuga, alongside those acquired, namely BBlunt and Dr Sheth’s.
TechCrunch reports that “Mamaearth’s business operations hinge on third-party manufacturing, with the company holding no manufacturing IP of its own. Its products reach consumers via an omni-channel network, with online sales, including direct-to-consumer and e-commerce, delivering 59% of total revenue across nearly 18,600 pin codes. Offline channels, contributing 36% of sales, span over 154,000 retail points, incorporating a mix of traditional and modern trade outlets, exclusive stores, and BBlunt salons”. In 2023, Mamaearth reported revenues of approximately $170 million, with the online channel yielding around 56% of this figure.
