Mamaearth is an Indian skincare and wellness brand co-founded by Varun Alagh and Ghazal Alagh and is owned by Honasa Consumer Pvt limited. Also, turned into a unicorn from a startup. Mamaearth is recognized as “One of the Best Brands” in India in ET Brand Festival.
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Background
Established in 2016, in Gurugram, Haryana, India. When the founders had their first child they were looking for chemical-free products for the baby, but they couldn’t find easily available options in India and had to import products, which didn’t seem feasible. This is how the idea of Mamaearth came into existence. While it started as a brand for baby care products, later it diversified for adults too.
What makes Mamaearth so special?
Mamaearth offers products that are safe by international standards. Mamaearth is often hailed as the 1st Asian brand with a “MADE SAFE” certification. The products that the company brings to the masses are free of all known toxins that are banned in most countries.
Mamaearth is renowned as a Green-friendly brand hence they came up with an initiative to make the world a better place for everyone. It has organised several campaigns such as ‘Let’s Recycle’ and #MyFirstGoodDeedOf2021 that gained massive success. This showed how they are working to conserve mother earth for the upcoming generation and this majorly attracted the parents to the brand. Mamaearth’s main consumer target base is mothers.
Founders
Varun Alagh, CEO and Co-founder – With a degree in Engineering from Delhi College of Engineering and an MBA from IIM Bangalore. He worked in various corporate jobs before starting Mamaearth.
Ghazal Alagh, COO and Co-founder – With a degree in Economics from Delhi University and an MBA from IIM Bangalore. She is also well known as one of the sharks in Shark Tank India.
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The journey from Startup to a Brand
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Mamaearth’s journey began when the couple decided to quit their corporate jobs and start a business. They did a lot of research on the topic of organic products and decided to create a line of skincare products made from natural ingredients. The duo started with just two products, a body lotion and a face cream. They sold these products through their website and social media platforms. Initially, it was a slow ride but once it started catching up, was when they continued to grow the brand.
Mamaearth decided to directly target mothers. When customers used Mamaearth products, the founders were confident that word-of-mouth publicity would spread like wildfire. Connecting with like-minded parents, who only wanted the best for their babies, was the primary goal of the brand. They considered Digital content as the sole means of acquiring customers and with perseverance, it showed results.
Mamaearth is the fastest-growing D2C brand in India with a generated revenue of around Rs 25 crore in 2018-19. The company’s revenue crossed Rs 100 crores the following year. Also in 2018, Shilpa Shetty was made the brand ambassador of the company. After her joining as its brand ambassador, the company boosted its sales up to four times. The company was valued at $1.07 billion as of January 2022. and is generating a revenue of Rs 461 crore.
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Competition
Mamaearth’s competition is against organized players in the industry, such as Johnson & Johnson, Nycaa, Kimberly Clark, Procter & Gamble, Unilever, etc. The number of companies adopting the toxin-free philosophy is helping Mamaearth’s overall competition and letting the company gain the upper hand.
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Mamaearth excels at its marketing too by targeting consumers through digital marketing using celebrities, online streamers, content creators, etc.
Mamaearth’s future plans
Mamaearth aims to acquire more than 5 million new customers by the end of FY 2025. They are focusing on doubling the revenue in the next two years. Mamaearth is also putting efforts into influencer marketing which has shown them great results after the advent of the pandemic. The company might go for IPO by the end of FY 2024.
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