Mamaearth Success Story – Journey From 25 lakhs to a Unicorn Company

Mamaearth Success Story – How They Killed All Potential Competitors?

Mamaearth is one such company that offers products that are not just safe for the users but it is environment friendly as well. Their products are loaded with nature’s goodness and meet all the safety measures as per International standards as well. Their products are also free from various toxins that are even banned in so many countries. Mamaearth is more than just a commercial brand. The focus, love, and care they put into all of their products are just unmatchable. This Indian company is making us proud in many ways by making the safest products available on market right now. So let us get into this article to read the success story of this giant company.

Mamaearth – Key Highlights

• Company Name – Mamaearth
• Founding Year – 2016
• Headquarters – Gurgaon, Haryana, India
• Founders – Ghazal Alagh and Varun Alagh
• Parent Organization – Honasa Consumer Pvt. Ltd.
• Industry – Personal products
• Company Type – For Profit
• Revenue – $61.90 M
• Valuation - $1.2 Billion
• Website – mamaearth.in

Mamaearth – Founders and Team

• Ghazal Alagh – Ghazal is the co-founder and CIO (Chief Innovation Officer) of Mamaearth. She holds a BCA degree in Information Technology from Panjab University. Ghazal worked as a corporate trainer at NIIT and she is also the founder of Dietexpert. She also holds a degree in Applied Arts and Modern Arts from the New York Art Academy and School of Visual Arts.
• Varun Alagh – Varun is another co-founder of the company. He is the husband of Ghazal and the Chief Dad of the company. Varun holds a BE degree in Electrical Engineering from DCE and an MBA degree in Finance and Marketing from XLRI, Jamshedpur. He has worked in various MNCs such as Coca-Cola, Smirnoff, and Hindustan Unilever before founding Honasa Consumer.

Mamaearth – Brand Name, Logo, and Tagline

• Brand Name – The company's brand name is 100% appropriate for the kind of business they do. It is easy to remember and the users resonate with the name as well.
• Logo – Mamaearth’s logo is in beautiful blue and green colour. This is exactly what the brand represents. The company specializes in organic products and hence the green and blue colour of the brand is perfect.
• Tagline – The tagline of the company is – Goodness Inside.

Mamaearth – Business Model

Mamaearth sells its products through various D2C platforms such as Amazon, Nykaa, Flipkart, etc. The company also sells its products through several offline stores in India. Their team follows the blue system that has an omnichannel presence.

Mamaearth is a trademark that is owned by its parent organization Honasa Consumer Pvt. Ltd. They formulate products that are made by contract manufacturers.

Mamaearth – Revenue Model

Mamaearth is an FMCG company and earns revenue from posting its products on various D2C platforms and offline stores.

Mamaearth – Products & Services

Mamaearth started with baby care products and now it caters to more than 80 natural products. They are known for using natural ingredients such as vitamin C, onion, charcoal, cocoa, tea tree, argan, ubtan, etc. Mamaearth is also India’s first-ever company that came up with baby wipes made of bamboo and many other products such as fennel & hing tummy roll-on for digestion and colic relief of infants.

Mamaearth offers products for baby care, skincare, haircare, etc. Some of the most famous products of the brand are as follows:

• Argan hair mask
• Lip balms
• Nourishing baby hair oil
• Calming body wash
• Teas
• Epsom bath salt flakes
• Travel essential kit
• Moisturizing lotion for babies
• Shampoos

Mamaearth – Growth & Revenue

Some of the growth factors of the company are as follows:

• It is one of the fastest-growing Indian D2C brands.
• The company crossed the much-awaited INR 100 crores mark in just 4 years since incorporation.
• They are the first Indian brand with the certification of Made Safe.
• Mamaearth’s brand ambassador is Shilpa Shetty Kundra.
• Their products are used by around 2 million people in India.
• The company’s products are now available in over 500 Indian cities.

Mamaearth’s revenue in FY 2021 was INR 461 crores as compared to FY 2020 which was INR 109.8 crores. They also gained profit in FY 2021 of INR 24.6 crores as compared to the loss in FY 2020 of INR 5.92 crores.

Mamaearth – Acquisitions

Mamaearth has acquired a few companies since its incorporation. Some of the acquisitions done by the company are as follows:

• BBlunt – INR 134 crore, Feb 14, 2021
• Mompresso – Dec 24, 2021
• Mompresso MyMoney – Dec 24, 2021

Mamaearth – Partnerships

Mamaearth has partnered with various organizations in its entrepreneurial journey. Some of the partnerships of the company are as follows:

• Anita Hassanandani
• Shilpa Shetty Kundra
• Ribbon Movie

Mamaearth – Awards and Achievements

Mamaearth has won many awards and recognition for its outstanding work in the beauty industry. Some of them are as follows:

One of the Best Brands – ET Brand Festival, 2019

Mamaearth – Funding and Investors

Mamaearth has raised total funding of $109.87 M in over 7 rounds. Details of all the funding and investors are as follows:

• $125K – Seed Round, Fireside Ventures, Dec 2016
• $1 M – Venture Round, Fireside Ventures, Sep 2017
• $250K – Venture Round, Shilpa Shetty, Apr 2018
• $4 M – Series A Round, Fireside Ventures, Stellaris Venture Partners
• $17 M – Sequoia Capital India, Jan 2020
• $50 M – Series C Round, Sofina Ventures, Jul 26, 2021
• $37.5 M – Series D Round, Sequoia Capital India, Dec 28, 2021

Mamaearth – Challenges Faced

Some of the major challenges faced by the company are as follows:

• Growth hurdle – This was one of the initial challenges that the company had to face. The company's growth became stagnant and they were unable to expand as expected. This made them quickly change their plan and focus on futile marketing and targeted customer acquisition.
• Target Group – Mamaearth had to redefine its target group as this was a huge challenge for them. Once the company did these changes, it suddenly started seeing growth in a short period.
• Competitors – Mamaearth has many competitors in the market. Not just Indian brands but international brands are also competing with the company on the same platform. Some of the major competitors of the brand are Dove, L’Oreal, Patanjali, Biotique, VLCC, etc. All of these companies have a good customer base and they are performing well on several levels.

Mamaearth – Future Plans

Mamaearth has many exciting plans for the upcoming future. Some of the significant plans of the company are as follows:

• The company aims to acquire more than 5 million new customers by the end of FY 2025.
• They are focusing on doubling its revenue in the next two years.
• Mamaearth is also putting efforts into influencer marketing on various platforms. They will cement brand awareness amongst customers.
• The company might go for IPO by the end of FY 2024.
• Mamaearth will also hire new employees as the company is growing at a good rate.