Mama earth is a successful FMCG company that is invested in baby products, skincare, and hair care products. It was founded by Mr. Ghazal Alagh along with her husband Varun Alagh in the year 2016. Mama earth is known for its environmentally friendly approach as it is hard being so in the FMCG industry but mama earth has developed many initiatives to preserve the ecological systems by reducing the use of plastics and other practices. The company is based out of Gurugram, Haryana. Honasa Consumer Private Limited has eight directors – Vettakkorumakankav Siva Subramaniam Sitaram, Subramaniam Somasundaram, and others.
Sources say that through the initial public offer they intend to put forth, the company wishes to raise around $3 Billion USD. Mama earth IPO is set to hit the floors by next year.
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MamaEarth IPO Details
Details are not available yet.
The below details belong to Mamaearth’s parent company – Honasa Consumer Private limited.
Key Points on Capital Structure
The company became the first unicorn in the country by raising a funding of $52 million from a Series F funding by Sequoia. Its net worth was valued at around $1.07 Billion. The company has an Authorized Capital of ₹ 140,03,51,400 and a Paid-up share capital of ₹ 136,05,92,230. Total assets of the company have increased by 54% when compared to its previous year’s financials. Whereas the liabilities of the company have raised by a massive 270%.
Revenue and operations
The revenue earned for the FY 2021-22 was ₹ 461 crores which is a huge leap from its FY 20 revenue of 109.8 crore ₹. Most of its revenue comes from domestic revenue as all of its business is focused on the B2C segment. The rise in revenue was backed by a steep increase in operational efficiencies. Its EBITDA has increased by 430.77 % over the previous year. Its net worth has also increased by 18.87%.
- The debt-equity ratio is very low at 0.05
- Return on equity – 13.51%
- Current assets increased by 49%
Conclusion
Since the company is yet to issue any sort of prospectus, the financials of the company is not out to view by the public which makes it difficult to analyze any fundamentals of the company. The company shall make such details public well in advance before issuing its Initial public offer and such calculations may be done at that point in time. For now, we may analyze how the company is performing in terms of product quality, customer satisfaction, and business reputation.
To my opinion, Mamaearth is a highly genuine and trusted brand in the country and provides good quality skin care and health care products that are healthy to use. Furthermore, the brand is backed by foreign investors which shows promise to the potential investors of its IPO. Mama earth could be a potentially successful IPO when it comes out, but to be on the safer side, Any deductions or assumptions may be taken closer to the IPO date to get the best estimate. Investors are requested to practice caution and due care before investing in IPOs. What we provide is merely professional advice based on the information available to the public and do not claim any responsibility for the behaviour of share prices/ performances of the company.
