Mamaearth says it has turned profitable as revenue neared ₹500 crore last year
- The announcement comes as Mamaearth turned a unicorn last week, after its parent company raised $52 million.
- The company will use this funding to test out its products in the Middle East and South Asian markets.
- The company expects to double its business by the end of March 2022.
The announcement comes as Mamaearth turned a unicorn last week, after its parent company Honasa Consumer Private Limited raised $52 million at a valuation of $1.2 billion. A unicorn, in startup parlance, is a company valued at or over a billion dollars.
Mamaearth’s Varun told BI that its revenue grew nearly four fold to ₹480 crore in the last financial year (FY20). Kanwaljit Singh of Fireside Ventures, who is one of the investors at Mamaearth, had previously noted that Mamaearth crossed ₹300 crore in revenue two-three months before closing FY2021.
AdvertisementNow, Varun expects to close March 2022 with double the revenue — which would be around ₹960 crore — by focusing on inorganic growth, launching more brands and doubling down on its distributions. While the number may be high, Mamaearth's past record has shown that it may not be too ambitious of a dream.
Source: Mamaearth’s financial statement for FY2020, Company statements
|Revenue||₹5.9 crore||₹112 crore||₹480 crore|
|Profit||-₹3.5 crore||-₹5.9 crore||Undisclosed|
Founded by Varun and Ghazal Alagh, Mamaearth is a D2C brand that sells over 80 beauty and personal care products across India through online and offline medium. The company will soon start testing out its products in the Middle East (Gulf Cooperation Council) and South Asia, Mamaearth’s CEO Varun told Business Insider.
The latest refunding round of Honsa Consumer Private Limited — the parent company of Mamaearth, The Derma Co and other personal care house of brands — was led by Sequoia. Sofina Ventures and Evolvence had also participated in the round, which gave exits to several undisclosed early backers as well as employees of Mamaearth.
“We will be deploying the funds towards brand launches, expanding distribution, inorganic growth and expanding the current portfolio across borders. Sequoia, Sofina and Evolvence have unique strengths in US, Europe and GCC respectively which will help us grow internationally and learn from others in these markets," Varun said.
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