IPO-bound Honasa Consumer Ltd is significantly escalating its initiatives to extend the reach of its flagship brand, Mamaearth, into international markets, setting ambitious goals for substantial growth.
According to ET, Honasa has pinpointed strategic regions where it plans to amplify the expansion of Mamaearth through partnerships with local channels. Bangladesh, Malaysia, Vietnam, and Thailand are highlighted as top-priority markets in this endeavor.
The company has already made its presence felt in various global markets, such as the UAE, Qatar, Nepal, Malaysia, Maldives, and Mauritius, with Amazon playing a pivotal role. Honasa utilizes a wide array of distribution channels, spanning from modern retail establishments and e-commerce platforms to operating dedicated brand websites in specific instances.
This global expansion effort aligns with Honasa Consumer Ltd’s proactive engagement with investors, aimed at securing a pre-IPO funding round within the range of $120 million to $150 million.
In the initial red herring prospectus issued in December last year, Honasa Consumer outlined its strategy to keep India as its main focus market in the medium term. Nevertheless, the company also expressed its strategic readiness to opportunistically expand its presence in markets such as the UAE, Nepal, and Bangladesh, either through organic growth or via strategic acquisitions.
The heightened emphasis on global markets aligns with a notable shift in leadership at Honasa Consumer. Ashish Mishra, the senior vice president for Offline and International Business, has been succeeded by Nishchay Sale Dan, former chief business officer at The Good Glamm Group, now serving as the new senior vice president for Offline Sales.
Established in 2016, Honasa Consumer initially began as a babycare brand and subsequently shifted its primary focus to the core beauty and skincare products sector. The company markets its hair care, skincare, and makeup products under the Mamaearth brand and additionally possesses other brands such as BBlunt, The Derma Co, and Ayuga.
In August, Honasa Consumer Ltd, the corporate entity behind the beauty e-commerce unicorn Mamaearth, obtained approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO).
According to the DRHP, a number of Honasa investors, which include founders Ghazal and Varun Alagh, along with Evolvence, Fireside Ventures, Sofina Ventures SA, Stellaris Venture Partners, Snapdeal founder Kunal Bahl, and Bollywood actress Shilpa Shetty Kundra, are anticipated to reduce their stakes in the IPO.
During the six-month period ending on September 30, 2022, the revenue from offline channels for all brands under Honasa Consumer Limited, the parent company of the direct-to-consumer beauty brand Mamaearth, constituted 35.39% of the total revenue from operations.
The share of revenue from offline channels, as per the DRHP, witnessed a remarkable 27-fold growth during the period, increasing to 28.87% in FY22 from 9.06% in FY20.
