Mamaearth: Revolutionizing the Personal Care Industry with Eco-friendly Solutions
Mamaearth, a rapidly growing personal care brand, has achieved remarkable success with its eco-friendly and toxin-free products, captivating consumers worldwide through its commitment to natural ingredients and sustainability. The brand’s journey serves as an inspiration for aspiring entrepreneurs in the industry.
Mamaearth - Company Highlights
| Startup Name | Mamaearth |
|---|---|
| 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) |
| Website | www.mamaearth.in |
Table of Content
Mamaearth – About and How it Works
Mamaearth – Founders/Owners and Team
Mamaearth – Startup Story | How was Mamaearth Started?
Mamaearth – Target Market Size
Mamaearth – Product/Services
Mamaearth – Startup Launch
Mamaearth – Mission and Vision
Mamaearth – Name and Logo
Mamaearth – Business and Revenue Model
Mamaearth – Funding and Investors
Mamaearth – Acquisitions
Mamaearth – Growth and Revenue
Mamaearth – Partnerships
Mamaearth – Startup Challenges
Mamaearth – Competitors
Mamaearth – Awards
Mamaearth – Future Plans
Mamaearth - About and How it Works
Mamaearth: Innovative Solutions for Safe and Natural Parenting in India
Mamaearth has emerged as a game-changer in Indian parenting by addressing a common problem faced by many. In a country where numerous baby products fail to meet safety regulations, Mamaearth has stepped up to offer a range of products that not only meet international safety standards but are also enriched with the goodness of nature.
One notable achievement for Mamaearth is being hailed as the first Asian brand to obtain the prestigious “MADE SAFE” certification. This certification validates that Mamaearth’s products are completely free from known toxins that are banned in most countries. With this recognition, parents can trust that Mamaearth is dedicated to providing safe and healthy options for their little ones.
Mamaearth takes pride in more than just being a commercial brand. Their products are created out of love and care, driven by the desire to make a positive impact on the lives of parents and children. The company’s commitment to safety, quality, and natural ingredients sets them apart.
For those curious about the origin of Mamaearth, the company is based in India, with its headquarters situated in Gurugram (Gurgaon), India. From this base, Mamaearth has expanded its reach and influence, becoming a trusted and sought-after brand both within India and internationally.
Experience the difference with Mamaearth as they revolutionize parenting in India, offering innovative solutions that prioritize safety and the well-being of children, all while harnessing the power of nature.
Mamaearth - Founders/Owners and Team
Mamaearth: Empowering Safe and Natural Products for All
Incorporated in 2016 by Ghazal Alagh and Varun Alagh, Mamaearth was born with a mission to provide safe, toxin-free products for babies across India. The couple’s dedication led to the launch of the Mamaearth range in December of that year. Today, the company has expanded its organic product line to cater not only to babies but also to moms, dads, grandparents, and people of all ages.
Varun Alagh, the Co-founder of Mamaearth, brings a wealth of experience from the FMCG industry. With a BE in Electrical Engineering from Delhi College of Engineering and an MBA in Finance and Marketing from XLRI Jamshedpur, Varun has held prominent positions at Hindustan Unilever, Smirnoff, and The Coca-Cola Company. His expertise in brand management has been instrumental in shaping Mamaearth’s success.
Ghazal Alagh, another Co-founder of Mamaearth, is recognized as the Chief Innovation Officer. With a background in Information Technology, Ghazal completed her BCA from Panjab University. She has also pursued intensive courses in Modern Art and Applied Arts from renowned institutions such as the School of Visual Arts and New York Academy of Art. Ghazal is not only an entrepreneur but also a distinguished artist, ranking among the top 10 women artists in India.
The power of mothers is at the heart of Mamaearth. The company collaborates with over 200 young moms who actively contribute to the ideation, conceptualization, and product testing phases. This connection with mothers remains a driving force behind the brand’s success. The open, ambitious, and experimental workplace culture at Mamaearth fosters a dynamic and enjoyable environment for all team members.
Regarding ownership, Varun Alagh holds the majority stake in Mamaearth at 38.72%. Sequoia Capital follows with a 15.22% stake, followed by Fireside Ventures with 12.04%, and Stellaris Ventures with 10.42%. Sofina Ventures holds 8.72% of the shares, while Co-founder Ghazal Alagh controls 3.58%. Shilpa Shetty Kundra holds 1.32%, and the remaining 10.44% of the stakes are owned by others, as of March 2021 data.
Mamaearth - Startup Story | How was Mamaearth Started?
Mamaearth’s Startup Story: The Genesis of a Revolutionary Brand
Mamaearth’s journey began with the shared vision of its co-founders, Ghazal Alagh and Varun Alagh, who aimed to address a pressing issue faced by many Indian parents—the lack of safe and toxin-free baby products in the market. Fueled by their personal experiences as parents, they embarked on a mission to create a brand that would offer natural, gentle, and trustworthy products for babies in India.
In 2016, Ghazal and Varun established Honasa Consumer Private Limited, the parent company of Mamaearth. With their passion and determination, they set out to revolutionize the personal care industry by providing safe, chemical-free alternatives to conventional products.
In December of the same year, Mamaearth’s range of toxin-free products was officially launched, marking a significant milestone in the brand’s journey. The products garnered immediate attention and appreciation from parents who were seeking healthier choices for their little ones.
One of Mamaearth’s core values is transparency. The brand takes pride in using natural, plant-based ingredients and avoiding harmful substances commonly found in many mainstream products. The company’s commitment to safety and quality has earned it accolades and certifications, including being hailed as the first Asian brand to receive the “MADE SAFE” certification.
Mamaearth’s success can be attributed not only to its innovative product offerings but also to its unique approach to product development. The brand actively involves mothers in every step of the process, from idea generation to formulation and testing. This collaborative approach ensures that the products meet the practical needs and expectations of parents.
As the demand for safe and natural personal care products grew, Mamaearth expanded its product line to cater to moms, dads, grandparents, and individuals of all ages. Today, the brand has become a trusted name in the industry, gaining recognition not only in India but also internationally.
Mamaearth’s startup story is a testament to the power of identifying a societal need, combined with a passionate commitment to addressing it. Through their unwavering dedication and innovative mindset, Ghazal Alagh and Varun Alagh have created a brand that continues to make a positive impact on the lives of families, providing them with safe, natural, and effective personal care solutions.
Mamaearth - Target Market Size
Mamaearth – Tapping into a Thriving Market
The baby care market in India is poised for significant growth, with estimated revenue expected to increase at a 12% compound annual growth rate (CAGR) in the next three years, according to market research firm Technavio. Recognizing this immense potential, Mamaearth has strategically segmented its product offerings to cater to various consumer needs. The brand’s product categories include:
Baby: Mamaearth offers a range of safe, natural, and toxin-free products specifically formulated for babies. From gentle cleansers to moisturizers and diaper rash creams, Mamaearth aims to provide parents with trusted and reliable solutions for their little ones.
Beauty: Mamaearth extends its product line to cater to the beauty needs of individuals of all ages. Their beauty range includes skincare essentials, such as face creams, serums, masks, and more, formulated with natural ingredients to promote healthy and radiant skin.
Hair: With a focus on hair care, Mamaearth offers a variety of hair products that address common concerns such as hair fall, dandruff, and dryness. Their hair care range includes shampoos, conditioners, hair oils, and serums, all designed to promote strong, lustrous hair.
Face: Mamaearth recognizes the importance of facial care and provides a dedicated range of face care products. From cleansers and toners to moisturizers and masks, their face care line aims to nourish and enhance the skin’s natural beauty.
Body: Mamaearth’s body care products are designed to pamper and nourish the skin. The range includes body lotions, body washes, creams, and other essentials that cater to the overall well-being of the body.
Gift Packs: Mamaearth offers thoughtfully curated gift packs, making it easier for customers to select and present their loved ones with a collection of safe and natural products for various occasions.
By strategically segmenting its product offerings, Mamaearth has positioned itself to tap into the growing market demand and cater to the diverse needs of consumers in India. With a focus on safety, natural ingredients, and product efficacy, Mamaearth aims to establish itself as a go-to brand for individuals seeking reliable and responsible personal care solutions.
Mamaearth - Product/Services
Mamaearth – Nurturing Families with Innovative and Natural Solutions
Mamaearth is a brand that prioritizes the well-being of babies and individuals alike, offering an exclusive range of products catering to baby care, haircare, skincare, and more. With a diverse portfolio of over 140 natural products, Mamaearth has gained recognition for its commitment to providing safe and effective solutions.
The brand has introduced several groundbreaking innovations, including India’s first bamboo-based baby wipes, revolutionizing the concept of gentle and eco-friendly hygiene for little ones. Additionally, Mamaearth has developed unique products like the easy tummy roll-on with Hing and Fennel, providing relief for colic and digestion issues. Their 100% natural plant-based toothpaste specifically formulated for children between 0-10 years showcases their dedication to safe oral care practices.
Mamaearth’s product range extends beyond babies to encompass the needs of mothers as well. They offer a wide array of products, from sunscreen to stretch mark removal serum, catering to the various aspects of motherhood. One of their standout product lines, loved by many, is the onion range, which offers effective solutions for mothers.
Emphasizing the power of natural ingredients, Mamaearth has curated skin and hair care products infused with popular elements such as onion, Ubtan, tea tree, vitamin C, argan, coco, and charcoal. These ingredients bring forth their inherent benefits, allowing individuals to embrace the goodness of nature in their daily self-care routines.
By expanding their product offerings and addressing the needs of both babies and mothers, Mamaearth has established itself as a trusted brand. Their focus on innovation, safety, and the use of natural ingredients has garnered them a loyal customer base who appreciate the brand’s commitment to providing holistic care for the entire family.
Mamaearth - Startup Launch
Mamaearth – Empowering Moms and Embracing Digital Strategies
Mamaearth recognizes the immense influence of mothers and has made them the primary target audience. The founders were confident that once mothers experienced Mamaearth products, the resulting word-of-mouth publicity would propel the company to new heights. Leveraging the power of social media and influencer marketing, the team effectively reached out to their target market.
The core strategy revolved around connecting with like-minded parents who prioritize the best for their babies. With a strong focus on digital content, Mamaearth’s customer acquisition efforts were driven by engaging online platforms.
“We aim to educate consumers about the problems our products solve and why they are the best in the market. We collaborate with over 500 mom bloggers, constantly innovating to remain relevant and meet evolving market needs,” shared Ghazal Alagh.
One of the key drivers of Mamaearth’s current growth rate was their lean innovation cycle. This approach emphasized swift launch, learning, and scaling. By identifying and addressing specific customer needs, Mamaearth continuously validated and improved product concepts in real-time through rapid experimentation. This resulted in enhanced customer satisfaction and reduced time-to-market for new offerings.
Mamaearth’s commitment to empowering moms and embracing digital strategies has been instrumental in their success. By fostering a strong community of engaged parents, leveraging influential voices on social media, and adopting an agile approach to product development, Mamaearth has solidified its position as a trusted brand catering to the evolving needs of modern families.
Mamaearth - Mission and Vision
Our goal is to establish a brand that becomes your trusted friend, a companion for every parent. We strive to understand your needs, acknowledge your concerns, and make sincere efforts to address them, well, most of them. Our brand is designed to earn the trust of parents like you and me, dedicated to enhancing the lives of mothers, expectant mothers, and their precious babies. We warmly welcome each and every baby into a world that is healthy and secure.
We aspire to nurture the well-being of both parents and babies, providing them with a comprehensive range of safe, toxin-free, and internationally recognized products. Our commitment is to offer you peace of mind, allowing you to choose our products without hesitation. It’s a lot like love, a heartfelt sentiment echoed in the “Our Mission” section of the Mamaearth website.
Our brand’s mission is to alleviate the recurring challenges faced by young parents, ensuring their journey of parenthood is filled with joy and devoid of unnecessary worries. Through our safe, toxin-free, and internationally acclaimed products, we aim to help parents embrace the joys of raising their children without any hassle.
Mamaearth - Name and Logo
Mamaearth is an online retailer that specializes in organic products that are best for babies, their mothers, grandparents, and others.
Mamaearth - Business and Revenue Model
Mamaearth develops product formulations that are subsequently manufactured by contract manufacturers, operating under the license of the Mamaearth brand. Honasa Consumer Pvt. Ltd. is the proud owner of the Mamaearth trademark.
As a digital-first FMCG company, Mamaearth’s revenue model revolves around the offers posted on various direct-to-consumer (D2C) platforms such as Amazon and Flipkart. The sales generated through these platforms, along with the traditional offline stores where our products are displayed, contribute to our overall revenue. At Mamaearth, our team adheres to the blue system, ensuring an omnichannel presence. This strategic approach places emphasis on innovative products as the driving force behind our growth.
Mamaearth - Funding and Investors
Mamaearth has successfully secured a total of $126 million in funding across 8 funding rounds. The most recent funding round occurred on September 15, 2022, in the form of Angel funding, which amounted to $759,000. Prior to this, Mamaearth raised $37.5 million on December 28, 2021, led by Sequoia Capital. Additionally, Mamaearth raised $50 million on July 26, 2021, in a Series C equity round, with Sofina Ventures as the leading investor.
In 2016, Mamaearth secured a pre-seed round of funding amounting to $125,000 from a consortium of investors. Two years later, in 2018, the company raised $4 million in Series A funding. Stellaris Ventures, Fireside Ventures, Marico’s Rishabh Mariwala (managing Sharp Ventures), and Snapdeal founders Kunal Bahl and Rohit Bansal led the funding round.
During April 2018, Shilpa Shetty Kundra also joined Mamaearth as an equity investor. In January 2020, Mamaearth successfully raised approximately Rs 140 crores in a funding round. The funding was led by Sequoia India, with participation from existing investors such as Fireside Ventures, Stellaris Venture Partners, and Sharp Ventures.
| Date | Stage | Amount | Investor |
|---|---|---|---|
| September 15, 2022 | – | $759 K | Angel round |
| December 28, 2021 | Series D | $37.5 Million | Sequoia Capital India |
| July 26, 2021 | Series C | $50 Million | Sofina Ventures |
| January 2020 | Series B | $17 Million | Sequoia Capital India |
| September 2018 | Series A | $4 Million | Fireside Ventures, Stellaris Venture Partners |
| April 2018 | Venture | $250K | Shilpa Shetty |
| September 2017 | Venture | $1 Million | Fireside Ventures |
| December 2016 | Seed | $125K | Fireside Ventures |
Mamaearth - Acquisitions
Mamaearth has made significant acquisitions, with a total of four companies to date: Dr. Sheth’s, BBLUNT, Mompresso, and Mompresso MyMoney. On February 14, 2022, Mamaearth acquired BBLUNT, a hair color brand owned by Godrej Consumers, for approximately Rs 134 crore. As part of the acquisition, Honasa now has control over all salons operated by the company under the name ‘Bhabani Blunt Hair Dressing.’ BBLUNT will continue to operate as a separate entity. This strategic acquisition enables Mamaearth to enter the hairstyling and hair coloring industry.
Following the BBLUNT acquisition, Mamaearth acquired a majority stake in Dr. Sheth’s on May 16, 2022, in a deal valued at Rs 28 crore. This acquisition positions Mamaearth for future growth of the Dr. Sheth’s brand. Aneesh Sheth, the CEO of Dr. Sheth’s, will continue to lead the product and business innovation of Dr. Sheth’s in collaboration with Mamaearth.
The company acquired the other two brands on December 24, 2021.
| Acquiree Name | Acquired Date | Price |
|---|---|---|
| Dr Sheth’s for Indian Skin | May 16, 2022 | $3.53 mn |
| BBlunt | February 14, 2021 | – |
| Mompresso | December 24, 2021 | – |
| Mompresso MyMoney | December 24, 2021 | – |
Mamaearth - Growth and Revenue
Mamaearth, launched in 2016 with just six products, has experienced remarkable growth since its inception. The company’s product range has expanded to over 140 natural and toxin-free products, catering to the needs of more than 1.5 million Indian consumers. Furthermore, Mamaearth products are now available in over 700 cities.
The brand’s growth trajectory has been impressive. Within just six months of operation, Mamaearth achieved revenue of 30 lakhs. Initially selling exclusively online to new customers, the brand gained a direct consumer base. Mamaearth reached the milestone of 2 crores in revenue and then onboarded Shilpa Shetty as its angel influencer, bringing in an influential mom. This move propelled Mamaearth to acquire 100,000 customers, and by 2019, the company achieved revenue of 25 crores. By 2020, within only three years of operation, Mamaearth surpassed the 100 crore mark in revenue.
The outbreak of Covid-19 further fueled Mamaearth’s growth. While physical stores were closed, the brand experienced a surge in online sales, led by Varun and Ghazal Alagh. By the end of 2021, Mamaearth’s revenue reached 460 crores, and in 2022, the company became a unicorn. Notably, Mamaearth has also achieved profitability and is currently aiming for an IPO with a valuation target of $3 billion.
Here are some key highlights of Mamaearth’s growth:
- Mamaearth is recognized as the fastest-growing direct-to-consumer (D2C) brand in India, surpassing the 100 crore mark within three years.
- It holds the distinction of being Asia’s first brand to receive a MadeSafe certification for its organic products.
- Mamaearth is known for its efforts in plastic recycling, making it one of the few Indian brands to prioritize sustainability.
- Shilpa Shetty Kundra, the brand ambassador for Mamaearth, advocates for the authenticity and quality of the products.
- Mamaearth’s financials showcase its significant growth. In 2022, the company reported revenues of 943 crores, a significant increase from the 461 crores posted in FY21. Domestic sales accounted for approximately 98% of the revenue, with global sales also experiencing a growth of 10 times.
- Mamaearth achieved profitability in FY22, with a profit of 19.8 crores compared to a loss of 1,332 crores in FY21.
- The company has improved its EBITDA margins, reporting 6.5% in FY21 compared to -5% in FY20, showcasing its enhanced financial performance.
Overall, Mamaearth’s journey has been characterized by rapid growth, sustainability initiatives, and strong financial performance, positioning it as a leading player in the D2C space in India.
Mamaearth - Partnerships
On February 26, 2021, Mamaearth formed a strategic partnership with Anita Hassanandani, a well-known television personality who had recently given birth to a baby boy. This collaboration with the new celebrity mother is particularly relevant as it is expected to drive growth in the hair care, skin care, and baby care categories for Mamaearth.
In March 2021, Mamaearth launched its national television commercial, featuring a 30-second film along with a shorter 15-second edit. The commercial featured Shilpa Shetty Kundra, who partnered with the brand to endorse the Vitamin C facewash offered by Mamaearth. The film aimed to promote the tagline “Goodness inside,” highlighting the brand’s commitment to providing natural and beneficial products.
Additionally, Mamaearth partnered with the film Ribbon, starring Kalki Koechlin and Sumeet Vyas, prior to its release on November 3, 2017. The brand became the official partner of the movie, aligning with its theme of motherhood and family.
Mamaearth - Startup Challenges
Like many organizations, Mamaearth faced challenges during its early years. One of the major hurdles was a lack of desired expansion. The team identified that the problem stemmed from not having a clear focus on the target cohort, leading to ineffective marketing efforts and limited customer acquisition.
To address this issue, the core team conducted an internal assessment and decided to redefine the target group and adjust the communication strategy accordingly. Once the new strategy was implemented, Mamaearth experienced notable growth within a short period.
The cosmetics industry is highly competitive, with numerous dominant companies, both foreign and Indian, vying for market share. This constant competition adds to the challenges faced by Mamaearth and other players in the industry.
Mamaearth - Competitors
Mamaearth faces significant competition from various sources, both directly and indirectly. In the baby care category, it competes with multinational corporations (MNCs) like Himalaya and Johnson & Johnson, which have a strong presence in the market. Additionally, e-commerce platforms like Nykaa also pose competition to Mamaearth.
In the broader cosmetics industry, Mamaearth encounters competition from established players such as Johnson & Johnson, Kimberly Clark, Procter & Gamble, and Unilever. These organized companies have a considerable market share and are formidable rivals to Mamaearth. Moreover, there is a growing number of companies that have adopted the toxin-free ideology, further increasing competition in the market.
Furthermore, there are several corporates and startups that offer a range of products in categories like baby apparel, baby toys, and baby accessories, which directly compete with Mamaearth’s offerings.
Overall, Mamaearth operates in a highly competitive landscape, contending with both well-established multinational companies and emerging players that share a focus on toxin-free products.
Mamaearth - Awards
- Mamaearth has been awarded the Young Turks Startup of the year category at CNBC-TV18’s India Business Leader Award 2022.
- Mamaearth was recognized as “One of the Best Brands” in India at the 2nd edition of The ET Brand Festival in 2019.
Mamaearth - Future Plans
According to Ghazal and Varun Alagh, the co-founders of Mamaearth, the company’s plan is to grow the brand into a Rs. 500 crore (approximately $67 million) brand by acquiring five million new consumers within the next three years. They also expressed their intention to launch more brands under the Honasa umbrella, specifically targeting the needs of millennial consumers.
In addition, Mamaearth aims to strengthen its brand awareness through influencer marketing and targeted digital funnels in the coming years.
Sources close to the company have reported that Mamaearth is considering an initial public offering (IPO) within the next 12-15 months. The potential public listing for Mamaearth is speculated to occur in the fiscal year 2023-2024.
FAQs
Is Mamaearth an Indian Brand?
Mamaearth is an Indian unicorn brand headquartered in Gurugram, Haryana. Founded in 2016 by Varun and Ghazal Alagh, it offers a range of toxin-free, natural products for baby care, skincare, haircare, and more.
Are Mamaearth products of high quality?
Mamaearth proudly holds the distinction of being Asia’s first brand certified 100% non-toxic by “MADE SAFE.” All of Mamaearth’s products are crafted using completely natural ingredients, ensuring their safety and quality.
Is Mamaearth influenced by Ayurveda?
Mamaearth is an innovative brand that combines the principles of Ayurveda with scientific advancements to develop natural and toxin-free products.
Who owns Mamaearth?
Mamaearth was founded by Varun Alagh and Ghazal Alagh. However, the majority stake in the company is held by Varun Alagh, who owns 38.72% of Mamaearth.
Are Mamaearth products organic?
Mamaearth products are made using organic and safe ingredients, guaranteeing their natural composition. The brand takes pride in promoting non-toxic and chemical-free formulations.
Is Mamaearth a vegan brand?
Mamaearth is certified “cruelty-free” by People for the Ethical Treatment of Animals (PETA). The brand does not support or engage in animal testing.
Is Mamaearth Shampoo free of sulfates?
Mamaearth relies on natural ingredients and ensures that its shampoos are sulfate-free, prioritizing user safety and well-being.
Can Mamaearth products be purchased in stores?
Mamaearth products are available both in physical stores and online. They can be conveniently purchased online from platforms like Nykaa and Amazon, as well as in brick-and-mortar medical stores.
How can one buy Mamaearth products?
Mamaearth products can be purchased online through various e-commerce platforms such as Nykaa and Amazon. Additionally, they are also available in physical stores, including medical stores, where customers can buy them at discounted rates.
