Mamaearth, the skin and personal care brand under Honasa Consumer, has secured a major boost ahead of its initial public offering (IPO). The parent firm has raised approximately $92 million in an anchor round from over three dozen asset managers.

This significant investment comes as Mamaearth prepares to list on the public markets, marking a crucial milestone for Indian startups looking to tap into the country’s growing appetite for listings.

Anchor Round Details

Honasa Consumer announced the anchor round on Monday, stating that a group of 35+ asset managers had subscribed to shares. The investors included several prominent names such as Abu Dhabi Investment Authority, Fidelity, Norges Bank, Invesco, Goldman Sachs, CDPQ, White Oak, Franklin Templeton, Kotak, DSP, Carmigniac Gestion, Loomis Sayles, Matthews, Pictet, and Hornbill.

The anchor round has seen the investors subscribe to nearly half of the $204.3 million that Mamaearth is aiming to raise through its IPO.

Mamaearth’s IPO Details

Mamaearth will open its initial public offering on Tuesday at a price band of ₹280-₹300 (approximately $3.7-$3.9). The brand, which counts Peak XV Partners and Sofina among its backers, operates through a robust omni-channel distribution network.

Honasa Consumer’s Portfolio

As the parent firm of Mamaearth, Honasa Consumer houses over half a dozen brands, including The Derma Co., BBlunt, and others. With an extensive presence in both online and offline markets, Honasa operates via a significant network of FMCG retail outlets across 113,000 locations nationwide.

Online Presence

Mamaearth’s online presence is substantial, with services available to approximately 18,000 ZIP codes through its D2C (Direct-to-Consumer) and e-commerce channels. As one of India’s leading digital-first BPC firms, Honasa Consumer has successfully leveraged technology to drive growth.

Market Trends

The anchor round and impending IPOs are significant indicators of the Indian startup ecosystem’s growing maturity. A recent report by AllianceBernstein notes that "internet IPOs in H1/H2CY24 are expected to improve as market conditions become more favorable."

Several prominent startups, including OyO Rooms (hotels and homes aggregation), Indegene/Tata Tech (IT Services), Reliance Retail, Flipkart, and Swiggy, are also reportedly considering listings.

Potential IPOs in 2024

The report highlights that these potential IPOs could add approximately $150 billion to the market cap. This surge is a testament to the growing interest from investors in Indian startups and their desire to tap into this emerging market.

As Mamaearth prepares for its IPO, Honasa Consumer’s anchor round has set the stage for a highly anticipated listing event. The startup ecosystem will be closely watching as these listings unfold, with many others poised to follow suit in the coming months.

Conclusion

Honasa Consumer’s successful anchor round and Mamaearth’s impending IPO are significant milestones for the Indian startup ecosystem. As the market continues to evolve, it is essential to stay up-to-date on the latest trends and developments.

With over three dozen prominent investors participating in the anchor round, Honasa Consumer has demonstrated its ability to attract significant investment. This milestone marks a crucial step towards Mamaearth’s listing on the public markets, paving the way for other startups to follow suit.

Related News

  • OyO Rooms: A hotel and homes aggregation platform set to list on the public markets.
  • Indegene/Tata Tech: An IT Services company preparing for its IPO.
  • Reliance Retail, Flipkart, and Swiggy: Prominent startups considering listings in 2024.

Stay informed about the latest developments in the Indian startup ecosystem by following our coverage.