New Delhi: Mamaearth’s parent company, Honasa Consumer Pvt. Ltd., has decided to put its initial public offering (IPO) on hold due to weak market conditions. The decision was made after considering various factors such as market volatility, unfavorable conditions, and the COVID-19 pandemic’s impact on the economy.
Mamaearth parent Honasa Consumer Ltd filed its documents for an IPO in December, planning to raise about $200 million to $300 million, through the issuing of new equity and an offer for sale of some existing shares, which could have valued the company at up to $3 billion.
The husband and wife duo Varun and Ghazal Alagh, founded Mamaearth in 2016 has been betting on India’s booming beauty and personal care market, which is estimated to expand to $30 billion by 2026 and has been growing by 12% a year, per the company’s IPO papers. In January 2022, Mamaearth was valued at $1.2 billion.
Mamaearth, which was founded in 2016, is a popular personal care brand that specializes in natural and organic products. The brand has gained significant popularity among Indian consumers, particularly millennials and Gen Z, who are increasingly conscious about using eco-friendly and sustainable products.
Mamaearth’s products range from skincare and hair care to baby care and wellness products, all made with natural and organic ingredients. The brand has a loyal customer base and has grown significantly in the past few years, with revenue of approximately Rs. 500 crore ($67 million) in the fiscal year 2021.
The company’s decision to delay its IPO has come at a time when many other Indian companies are also postponing their IPOs due to market volatility and the ongoing pandemic’s impact on the economy. The Indian stock market has been volatile in recent months, with many companies struggling to meet their revenue targets and facing challenges in raising capital.
Despite the delay in its IPO, Mamaearth remains optimistic about its future growth prospects. The company has raised significant funds in the past from various investors, including Sequoia Capital, Fireside Ventures, and Stellaris Venture Partners.
In conclusion, considering the current market conditions, Mamaearth’s decision to delay its IPO is a prudent move. However, the brand’s popularity and growth prospects make it an exciting company to watch in the future.