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Decoding Mamaearth's IPO

Mamaearth has merits but needs to convince investors it can translate rapid growth into enduring profitability.

Mamaearth's parent firm Honasa Consumer Ltd to launch IPO on October 31 with a reduced offer size.

According to the RHP, the D2C brand plans to issue fresh shares worth ₹365 crore along with an offer for sale (OFS) of 41.25 million shares. The proceeds of the fresh issue will be lower than the ₹400 crore proposed in the Draft RHP filed in December last year.
The D2C firm reported a net loss of ₹151 crore in FY23. It had reported a net profit of ₹14.4 crore in the previous fiscal. Its total operating revenue stood at ₹1,492.7 crore in FY23, from ₹943.4 crore in FY22. - The Hindu Businessline

About Mamaearth

Founded in 2016 by husband-wife duo Varun and Ghazal Alagh, Mamaearth has become a leading skincare and beauty brand focused on toxin-free, natural ingredients. Mamaearth is backed by investors like Sequoia and has achieved the rare feat of becoming profitable as a D2C startup. The IPO is likely to value the company at over ₹10,500 crore billion.

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