Secret behind Mamaearth’s Success

When realization dawned on new parents, Varun and Ghazal Alagh, that baby products in India are loaded with toxins, they decided to find a solution for it. That solution was Mamaearth.

The stress and anxiety faced by new parents for their newborn is indescribable. It is the responsibility of every parent to take care of their bundle of joy. Varun and Ghazal Alagh underwent the same stress and more to treat their infant son’s skin condition. 

Baby products available in the Indian market were made with compounds that were banned and labelled harmful for kids abroad but were widely sold in the Indian market. That too without any warning or cautionary statement. Luckily, the couple could access foreign goods but this led them to think that some change is needed. Not all parents could afford nor access foreign goods for their kids. 

This is when they came up with the idea to start Honasa Consumer in Gurugram in 2016. They started their venture with only 6 baby products that were made out of natural, plant-based and manmade material that were certified to be both safe and effective. 

Fast forward 5 years, and this venture renamed as Mamaearth, has become India’s fastest-growing brand in the FMCG sector. It has expanded from baby care to hair and skincare segments. It has broken records not only in India but also in Asia. It became the only MadeSafe certified Asian brand to cross the Rs 100 crore mark in just 4 years.

In FY19, the brand’s operational revenue was only Rs 16.8 crore. In FY21, their annual revenue run rate stood at a whopping Rs 700 crore. This number is expected to reach Rs 2000 crore in the next 3 years.

Till now the venture has raised $73.3 million from notable investors like Fireside Ventures, Shilpa Shetty, Stellaris Venture Partners, Sequoia Capital India and Sofina. Last January, the company raised Rs 130 crores making it the biggest funding round for an internet-based venture.

The power couple understood the need for safe products in the Indian market and delivered accordingly. Is finding effective solutions to existing problems the key ingredient for a successful startup like Mamaearth? The number does speak for themselves.

Tags : #Mamaearth #VarunAlagh #GhazalAlagh #HonasaConsumer #FiresideVentures #ShilpaShetty #StellarisVenturePartners #SequoiaCapitalIndia #Sofina #startup #Indianstartup #unicorn #MediSpeak #smitakumar #medicircle

About the Author

Priyal Shah

Priyal Shah is a graduate of Media from Mithibai College, Mumbai. She is a writer, researcher and avid reader.

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