Mamaearth looks to raise $150 Million

Direct-to-consumer (D2C) unicorn Mamaearth is reportedly seeking to raise between $120 million to $150 million in a new funding round before its planned initial public offering (IPO). This funding effort is prompted by certain early investors who wish to sell shares ahead of the IPO. The company, operated by Honasa Consumer Private Limited, has initiated talks with potential investors such as SoftBank, Singapore's GIC, Qatar Investment Authority (QIA), and pre-IPO investors like Fidelity Investments, aiming for a valuation of $1.5 billion. 

Primarily a secondary share sale, the funding round is not expected to require a primary capital infusion as Mamaearth is already profitable. While founders Varun and Ghazal Alagh are confident about delivering returns to investors through the upcoming IPO, a source indicates that some early investors wish to divest their shares.

Notable early investors in Mamaearth include Stellaris Venture Partners, Fireside Ventures, Shilpa Shetty Kundra, Suhail Sameer, and Snapdeal's Kunal Bahl and Rohit Bansal. While discussions are still in their early stages, the potential involvement of SoftBank could mark its first investment in India in over 15 months and a relatively rare pre-IPO deal for the company in India.

Mamaearth recently received approval from the Securities and Exchange Board of India (SEBI) for its IPO. The company aims to conduct investor roadshows in the coming weeks. Founded in 2016, Mamaearth turned into a unicorn in 2021 after raising $52 million. In the fiscal year 2022, it achieved a net profit of around Rs 20 crore and saw a 102% increase in revenues to Rs 952 crore compared to the previous year.

Source: Media Reports