The Indian startup ecosystem is buzzing with the news of the upcoming Mamaearth IPO. With the IPO, Mamaearth is set to become one of the most successful Indian startups, making it an attractive investment opportunity for investors. In this blog, we’ll take an insider’s look at the Mamaearth IPO and explore the risks and rewards of investing in the company.
Introduction to Mamaearth
Mamaearth is an online beauty and wellness brand that specializes in natural and organic products. Founded in 2016 by Ghazal Alagh and Varun Alagh, Mamaearth has grown from a small startup to one of India’s leading beauty and wellness brands. The company offers a wide range of products, from skincare to baby care, that are made from natural and organic ingredients.
The company has grown rapidly since its inception, with a reported turnover of over Rs. 450 crore in FY20. With its growing customer base and increasing revenue, Mamaearth is now ready to take the next big step—launching its IPO.
The History of Mamaearth
Ghazal Alagh and Varun Alagh started Mamaearth in 2016. The idea for the company was born out of a need to provide safe, natural, and affordable products to consumers. After months of research and development, the duo launched their first product—a face wash, in 2016.
The product was an instant hit, and the company quickly gained traction in the market. It quickly added skin care, hair care, baby care, and other health and wellness products to its line. The company now has over 500 products and is one of the leading brands in the Indian beauty and wellness market
The Role of Ghazal Alagh in Mamaearth
Ghazal Alagh is the co-founder and CEO of Mamaearth. She is an experienced entrepreneur who has been involved in the beauty and wellness industry for over a decade. She is also the driving force behind the company’s success.
Under her leadership, Mamaearth has grown from a small startup to one of India’s leading beauty and wellness brands. She has also led the company’s expansion into new markets, such as Europe and the United States.
Ghazal is a well-known figure in the Indian startup ecosystem. She is often seen as an example for young people who want to start their own businesses, and she has been in a number of magazines and newspapers. She is also a regular speaker at various industry events.
What is the Turnover of Mamaearth?
Mamaearth has been growing rapidly since its launch in 2016. The company reported a turnover of over Rs. 940 crores in FY22. This is a significant increase from the Rs. 461 crores reported in FY20.
The company became profitable in FY22 with a net profit of Rs14 crore compared to losses of Rs1,332 crore in FY21 and Rs428 crore in FY20. This is a sign of the strong growth and profitability of the company.
The company’s strong performance has made it an attractive investment opportunity for investors.
The Benefits of Investing in Mamaearth
Mamaearth is an attractive investment opportunity for investors due to its strong growth and profitability. The company has a loyal customer base and has been able to increase its revenue every year.
The company is also well-positioned to capitalize on the growing demand for natural and organic products in India. With its wide range of products, Mamaearth is well-placed to benefit from this trend.
In addition, the company has a strong brand name and is well-known in the industry. This gives it an advantage over other players in the market.
The company is also backed by strong private equity investors, which adds to the attractiveness of investing in Mamaearth.
The Pre-IPO Process and Private Equity Investments
Mamaearth is currently in the pre-IPO process. This involves securing investments from private equity investors. The company is backed by several large investors, including Sequoia Capital, Kalaari Capital, and Accel.
These investors have played a key role in the company’s growth and success. They have provided the capital needed to expand the company’s product range and grow its customer base.
The investments from these private equity investors have also enabled Mamaearth to prepare for its upcoming IPO.
The Details of the Mamaearth IPO
Mamaearth’s IPO is expected to be a blockbuster. The company has filed its prospectus with the Securities and Exchange Board of India (SEBI) and is expected to list on the Indian stock exchange in the coming months.
The company has planned a 2900 crore INR initial public offering. The IPO will include a 400 crore rupee fresh issue of shares as well as a 46.8 million share offer for sale (OFS). The money acquired through the IPO will be primarily utilized to launch exclusive brand stores and increase brand visibility and advertising.
The company’s founders, Varun and Ghazal Alagh, along with investors Sofina, Fireside Ventures, Evolvence India, Stellaris, and angel investors Kunal Bahl, Rohit Bansal, Rishabh Mariwala, and actor Shilpa Shetty, will sell some of their shares in the company through the OFS.
The company has also applied to list on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The Impact of the Mamaearth IPO
The Mamaearth IPO is expected to have a huge impact on the Indian startup ecosystem. It is the first Indian startup to list on the Indian stock exchange and is expected to be a bellwether for other startups in the country.
The IPO will also provide an opportunity for investors to invest in a fast-growing and profitable company. The company’s strong performance and growing customer base make it an attractive investment opportunity.
In addition, the listing of Mamaearth on the Indian stock exchange will provide a boost to the Indian startup ecosystem. It will create more awareness and interest in the sector and will encourage more investors to invest in startups.
The Risks and Rewards of Investing in Unlisted Shares
Investing in unlisted shares is a risky proposition. The company’s performance and prospects are not known and there is no guarantee of returns.
However, investing in unlisted shares can also be rewarding. The stock price of the company could go up a lot if the company does well or if the market looks good.
Before putting money into unlisted shares, investors should do their research and think about the risks and rewards. They should also be aware of the company’s fundamentals and prospects before investing.
Pros and Cons of a Bad IPO?
A bad IPO can have both positive and negative impacts. A bad IPO can lead to a drop in the company’s stock price and a loss of investor confidence. It can also lead to a decrease in the company’s market capitalization and a decrease in the PE ratio.
On the other hand, a bad IPO can also be a good opportunity for investors. A bad IPO can provide an opportunity to buy shares at a discount. This can be a good long-term investment opportunity for investors.
However, investors should be aware of the risks and rewards before investing in a bad IPO. Before investing, they should also do their research and think about the company’s core business and future plans.
Mamaearth is set to launch its IPO in the coming months, which is a huge milestone for the The IPO is expected to be a blockbuster and will provide investors with an opportunity to invest in a fast-growing and profitable company.The IPO is expected to be a huge success and will give investors a chance to put their money into a company that is growing quickly and making money. However, investors should be aware of the risks and rewards before investing in the company.
Overall, the Mamaearth IPO is a great chance for investors and is likely to be good for the Indian startup ecosystem.