Honasa Consumer Pvt Ltd, the parent company of the renowned skincare brand Mamaearth, has reported a substantial loss of ₹151 crore for the financial year ending in March 2023. This loss marks a significant downturn from the previous fiscal year, when the company posted a profit of ₹14.4 crore. The setback is attributed to rising employee benefits and other expenses, casting a shadow over Mamaearth’s financial performance.
Financial Statistics and Operating Revenue Growth
Despite the fiscal challenges, Honasa Consumer reported an operating revenue of ₹1,493 crore in FY23, marking a notable 58% increase from the ₹943 crore generated in the previous year. However, this growth was overshadowed by a surge in total expenditure, which rose to ₹1,502 crore from ₹942 crore in the prior fiscal year.
Employee Benefit Costs and Other Expenses Surge
The rising employee benefit cost was a significant contributor to the company’s financial struggles, ballooning by 109% to ₹1,649 crore during the reporting period, compared to ₹788 crore in FY22. Additionally, other expenses also saw a significant uptick, surging by 50% to ₹8,584 crore, according to filings with the Ministry of Corporate Affairs (MCA).
Mamaearth’s Journey to Unicorn Status
Mamaearth, a popular direct-to-consumer (D2C) skincare brand, made headlines in 2022 as it became India’s first unicorn of the year. This feat was achieved after successfully raising $52 million in a funding round led by Peak XV Partners, valuing the company at $1.2 billion. The initial public offering (IPO) of Honasa Consumer had initially been scheduled for March but was delayed due to economic uncertainties at the time.
Mamaearth’s Upcoming IPO
As the company prepares for its public-market debut on October 31, Honasa Consumer’s IPO is expected to raise approximately ₹10,500 crore, as per reports in the media. This anticipated IPO has sparked discussions within the industry regarding the timing and valuation. Co-founder Ghazal Alagh clarified that the company has not officially endorsed the widely discussed valuation number, adding an element of uncertainty to the upcoming IPO.
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The future of Mamaearth and Honasa Consumer in the public markets remains an intriguing subject of interest, with stakeholders eagerly watching for developments as the company embarks on its next financial chapter.
