Mamaearth IPO Review (Honasa consumer limited IPO Review) : Mamaearth IPO Apply or Not?

Mamaearth IPO Review: Honasa Consumer Limited's Journey to the Stock Market

Mamaearth, a beloved direct-to-consumer (D2C) personal care brand under the umbrella of Honasa Consumer Limited, is gearing up for its initial public offering (IPO) in November 2023. The IPO is expected to raise approximately ₹1701 crore through a fresh issue of shares and an offer for sale (OFS) by existing shareholders, valuing Mamaearth at a staggering ₹10,424.53 crore. In this blog, we will delve into the key strengths, concerns, financials, and whether you should consider applying for Mamaearth’s IPO.

About Mamaearth and Honasa Consumer Limited

Honasa Consumer Limited is a prominent player in the Indian beauty and personal care industry, with a primary focus on addressing consumers’ beauty and personal care needs. Mamaearth, its flagship brand, was introduced in 2016 to cater to the growing demand for safe, natural, and toxin-free beauty products. Over time, Honasa has expanded its portfolio to include other brands like The Derma Co., Aqualogica, Ayuga, BBlunt, and Dr. Sheth’s. This “House of Brands” architecture positions Honasa Consumer as the largest digital-first beauty and personal care company in India in terms of revenue from operations for the Financial Year 2022.

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See Also: Mamaearth IPO GMP (Honasa Consumer Limited IPO GMP)

Key Strengths of Mamaearth

  1. Strong Brand Recognition and Customer Loyalty: Mamaearth enjoys robust brand recognition and a dedicated customer base, particularly among millennials and Gen Z consumers. The brand’s focus on safe and natural ingredients resonates well with today’s conscious consumers.
  2. Wide Range of Products: Mamaearth offers a diverse product range across personal care categories, spanning baby care, beauty, and hair care. This extensive product line caters to a wide demographic.
  3. Emphasis on Natural and Safe Ingredients: Mamaearth’s commitment to using natural and safe ingredients sets it apart in the market. This focus on clean beauty aligns with the growing consumer trend toward safer and eco-friendly products.
  4. Omnichannel Distribution Presence: Mamaearth has a well-rounded distribution strategy, leveraging both online and offline channels. This multi-channel approach ensures wide market access and scalability.

Read Also: Mamaearth Announces IPO Price Band of Rs 308-324 per Share for October 31 Debut

Key Concerns

  1. High Reliance on E-commerce Marketplaces: A significant portion of Mamaearth’s sales come from e-commerce platforms. While this has been a successful model so far, it also exposes the company to the risks associated with online marketplaces, including changing consumer behavior and competition.
  2. Limited Product Portfolio: While Mamaearth offers a wide range of products, it’s important to note that it may not have the diversified product portfolio compared to some established competitors.
  3. Competition: The personal care market in India is highly competitive, with established giants like Hindustan Unilever, L’Oréal, and Dabur. Emerging D2C brands are also entering the scene, intensifying the competition.
  4. Relatively New Company: Honasa Consumer, and consequently Mamaearth, is still relatively new in the market. It lacks a long track record of profitability and stability.


Mamaearth’s financial performance has shown significant growth, with revenues surging by over 50% in FY22. However, it’s worth noting that the company has only been profitable for the past two years, and investors should carefully assess its ability to sustain profitability over the long term.

Mamaearth IPO Review: To Apply or Not to Apply?

Honasa consumer limited IPO Review: Whether or not you should consider applying for the Mamaearth IPO depends on your individual investment goals and risk tolerance. Here are some key factors to weigh:

Reasons to Apply:

  1. Strong Brand Recognition: Mamaearth is a well-known personal care brand with a solid presence in the online and offline markets.
  2. Rapid Growth: The company has experienced rapid revenue growth, indicating strong market demand for its products.
  3. First-Mover Advantage in Clean Beauty: Mamaearth was among the pioneers in the clean beauty segment in India, giving it a competitive edge in this niche.
  4. Large Addressable Market: India’s personal care market is vast and expanding, with a projected CAGR of over 10% in the next five years.

Risks to Consider:

  1. Intense Competition: Mamaearth faces tough competition from established industry players, making it important for the company to consistently innovate and expand its product offerings.
  2. Dependence on Online Sales: A significant portion of Mamaearth’s revenue is derived from online sales, making it susceptible to shifts in consumer behavior and e-commerce competition.
  3. New Product Development: Continued innovation and product development will be crucial for Mamaearth to maintain its growth momentum.
  4. Profitability: The company has only recently achieved profitability, and it remains to be seen whether it can sustain this profitability over the long term.


If you are a long-term investor with a high risk tolerance and believe in Mamaearth’s growth potential, you may consider applying for the IPO. However, if you are risk-averse, it might be wise to wait and observe the company’s performance and profitability over a longer period.

Discliamer: Please remember that this is not financial advice. It’s crucial to consult with a financial advisor or conduct thorough research before making any investment decisions. Mamaearth’s IPO presents an exciting opportunity, but it comes with its share of risks, and it’s essential to make informed choices.

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Disclaimer: The information provided on this website is for informational purposes only and should not be construed as financial or investment advice. Users are advised to do their own research and consult a qualified financial advisor before making any investment decisions.
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