Consumers are frequently concerned about the procedures used in the cosmetics industry’s production of the goods. Because of this, a new era of organic cosmetic products is emerging, produced without the use of toxins or other chemicals and using natural ingredients.
Due to the fact that these natural products do no harm to our skin, hair, gut, or overall well-being, their popularity is palpable. Leveraging the demand for organic products, Mamaearth has become a promising start-up in the cosmetics sector and has earned the American Made Safe Certification, the first nontoxic label for products currently in use.
Ghazal and Varun Alagh founded Mamaearth in September 2016 to make skincare routines more stylish while still being extremely careful. In the Indian cosmetics market, Mamaearth, which has its headquarters in Gurugram (India), stands out as an online retailer of natural and toxic-free skin care products.
Startup Name – Mamaearth
Founders – Ghazal Alagh and Varun Alagh
Headquarters – Gurugram, India
Sector – Personal Products
Founders – Ghazal Alagh and Varun Alagh
Founded – 2016
Parent Organization – Honasa Consumer Pvt. Ltd.
Total funding – $126 M (Till January 2023)
Valuation – $2 bn (December 2022)
Revenue – $117.8 million (Rs 943 crore in FY22)
Parent organization – Honasa Consumer Pvt. Ltd.
Contact – [email protected]
Website – www.mamaearth.in
Mamaearth – Goodness Inside
Mamaearth has made an effort to resolve a prevalent parenting issue in India by developing a cutting-edge product line. Mamaearth sells baby products that are safe by international standards and brimming with nature’s goodness in a nation where the majority of the products on the market do not adhere to safety regulations.
Mamaearth is frequently credited as the first Asian company to receive the “MADE SAFE” certification. The company’s products are free of all known toxins that are typically illegal in other nations. Mamaearth prides itself on producing goods with love and care rather than just as a for-profit company.
Mamaearth – Where did it start?
When Ghazal Alagh and her husband Varun got to know they were expecting their first child, they shared the same desire to provide the baby with the best care and love possible. The couple, like every other parent, used the internet to conduct research regarding their baby’s safety as well as to browse the kinds of baby products they ought to use. They eventually realised that because all of these products contain chemicals that are harmful to newborns, none of them could possibly meet the full safety standards. Due to the higher quality standards of the products available there, the couple started buying them from the US because they couldn’t find any Indian products that were safer for their child. However, they found the process to be very costly and inconvenient.
Ghazal and Varun decided to launch their own business to provide safe and toxin-free chemicals to take care of every parent and baby’s wellbeing after finding no available solutions. That is how Mama Earth came into being. In Gurugram, the brand was introduced in 2016 by Ghazal and Varun under the umbrella of parent company Honasa Consumer Pvt Ltd.
Mamaearth – Founders/Owners
The toxin-free Mamaearth line of products was introduced in December of that year. Ghazal Alagh and Varun Alagh founded Mamaearth in 2016, combining Honasa Consumer Private Limited. The couple made it their mission to offer chemical-free products to each and every baby in India. The business now provides services for infants, parents, grandparents, and everyone else as a producer of organic products.
Varun Alagh, co-founder and CEO
The CEO and co-founder of Mamaearth is Varun Alag. He graduated from Delhi College of Engineering with a degree in engineering, and IIM Bangalore awarded him an MBA. Before founding Mamaearth, he held a number of corporate positions.
The COO and co-founder is Ghazal Alagh.
The COO and co-founder of Mamaearth is Ghazal Alagh. She holds an MBA from IIM Bangalore as well as an Economics degree from Delhi University. Before founding Mamaearth, she also held a number of corporate positions.
Mamaearth – Growth in the market
Mamaearth received the MadeSafe certification four years after its launch, making it the first brand in Asia to do so. If you’re not familiar, this certification confirms that a product is made with safe ingredients (toxin-free) and does not harm the health of people, animals, or the environment. There were only six products in Mamaearth’s catalogue when the company was first established. However, the company has since added more than 80 natural and toxic-free products to its lineup, which are now used by over 1.5 million people in India.
Mamaearth, widely regarded as the D2C brand in the nation with the fastest rate of growth, reached the remarkable milestone of Rs 100 crore in just four years. With a valuation of more than $1 billion, the business has additionally joined the unicorn club.
Mamaearth – The business model for Mamaearth
Mamaearth sells its goods on a number of direct-to-consumer websites, including Amazon, Nykaa, Flipkart, etc. Additionally, the business has a number of offline stores in India where it sells its goods. The blue system, which has an omnichannel presence, is used by their team.
Owner of the trademark Mamaearth is its parent company Honasa Consumer Pvt. Ltd. They develop goods that contract manufacturers produce.
The baby care market in India is anticipated to increase in revenue over the next three years at a 12% CAGR, according to predictions made by the market research firm Technavio. Mamaearth has divided its products into the following categories in terms of what is available:
Baby Beauty Hair, Face, and Body Gift Sets.
Mamaearth – Funding and Investors
The total amount of funding raised by Mamaearth in over 7 rounds is $109.87 million. The following information is provided regarding all funding and investors:
$125K – Seed Round, Fireside Ventures, Dec. 2016
$1,000,000 Venture Round, Fireside Ventures, September 2017
Shilpa Shetty, $250k Venture Round Apr 2018
$4 million in Series A funding from Fireside Ventures and Stellaris Venture Partners
Sequoia Capital India, $17 M, Jan 2020
$50 million Series C round, Sofina Ventures, July 26, 2021
Sequoia Capital India’s Series D Round, $37.5 million, is scheduled to close on December 28, 2021.
Mamaearth – Partnerships
On February 26, 2021, Anita Hassanandani joined Mamaearth. The strategic alliance between the business and TV veteran Anita, who had recently given birth to a boy, is made all the more important by her status as a new celebrity mother. Due to this partnership, Mamaearth will be able to expand its baby care, skincare, and haircare categories in the future.
Shilpa Shetty Kundra joined the company to promote Mamaearth’s Vitamin C facewash through a 30-second film that will debut on March 20, 2021. The only objective of the movie was “Goodness inside.”
Prior to the film Ribbon’s November 3 release, starring Kalki Koechlin and Sumeet Vyas, our organic customer products brand collaborated with them. The song was chosen as the “Official Mama’s Partner” for the film.
Mamaearth – Business Plan
As an FMCG company, Mamaearth makes money by listing its goods on various D2C platforms and physical stores.
In just four years, the business grew at the fastest rate to reach a 100 crore turnover. Mamaearth reported revenue of 461 crore rupees in FY21, a quadrupling from 109.8 crore rupees in the prior FY. About 98% of Mamaearth’s revenue came from domestic sales, with the remaining portio
Mamaearth – Competitors
It directly and indirectly competes against MNCs like Himalaya and Johnson & Johnson as well as online e-commerce platforms like Nykaa. Mamaearth offers a variety of baby-related products, including accessories, clothing, and toys, and is in direct competition with several well-established and emerging businesses.
In the cosmetics sector, Mamaearth competes with established firms like Johnson & Johnson, Kimberly Clark, Procter & Gamble, and Unilever. The number of businesses embracing the toxin-free philosophy is growing, which makes Mamaearth more competitive overall.
Mamaearth – The Future
Mamaearth is aiming to become a 500 crore brand by expanding into Tier-II and Tier-III cities, offering more offline stores and a wider range of goods.
By generating Rs 460 crore in revenue in 2021, Mamaearth has become a profitable business. It now plans to list on the stock market at a $3 billion valuation.