MamaEarth parent raises $92 million in anchor round ahead of its IPO

As it moves towards its upcoming initial public offering (IPO), Honasa Consumer Ltd, the parent company of popular D2C skincare and personal care brand Mamaearth, has secured Rs 765.2 crore (~ $92 million) in a strategic anchor funding round.

The latest funding brings the Indian unicorn's total funding round to date to $218 million. Mamaearth, which operates under Honasa Consumer, opened its IPO on Tuesday at a price band of $3.7 to $3.9 per share.

Honasa manages a diverse portfolio that includes 6 brands such as Mamaearth, The Derma Co., and BBlunt, among others. It has established a robust omni-channel distribution network, serving around 18,000 ZIP codes through its direct-to-consumer and e-commerce channels. Additionally, Mamaearth has expanded its footprint in offline retail, with its products available in approximately 113,000 FMCG retail outlets nationwide.

This anchor investment holds considerable significance as it constitutes nearly half of the targeted USD $204.3 million that Mamaearth aims to raise through its public market debut.

Notable participants in this funding round included influential names like the Abu Dhabi Investment Authority, Fidelity, Norges Bank, Invesco, Goldman Sachs, CDPQ, White Oak, Franklin Templeton, Kotak, DSP, Carmignac Gestion, Loomis Sayles, Matthews, Pictet, and Hornbill which acquiring shares through the anchor book according to an official filing.

Meanwhile, the broader Indian startup landscape is closely observing market conditions as it evaluates the ideal timing for its own IPOs. Industry analysts at AllianceBernstein anticipate a surge in internet IPOs in both the first and second halves of 2024, as market conditions become more favourable. Several notable potential IPO candidates include OYO Rooms, Indegene/Tata Tech, Reliance Retail, Flipkart, and Swiggy.