The parent company of the direct-to-consumer (D2C) brand Mamaearth, Honasa Consumer Ltd, said that during the second quarter of 2016, The Derma Co’s annual sales rate surpassed the Rs 350 crore threshold.
41 months after The Derma Co was introduced in 2020, the company reported that Rs 30 crore in monthly revenue was generated in the months of April and June.
Varun Alagh, cofounder, chairman, and CEO of Honasa Consumer, stated that the goal of The Derma Co was to “democratise the segment of active ingredients-based skincare and make it easily accessible to consumers.”
“We discovered during the scale-up and incubation phases that we had developed repeatable playbooks that had allowed us to surpass the milestone more quickly than Mamaearth. The Derma Co.’s achievement of this milestone has strengthened our confidence in our playbooks, and we will keep applying our lessons to Honasa Consumer’s portfolio of brands, he continued.
For its first public offering (IPO), Honasa Consumer submitted the draft red herring prospectus in December. It includes an offer for sale (OFS) component of up to 4.68 crore shares from the promoters and current shareholders as well as a new issue of equity shares up to the value of Rs 400 crore. Included in this group are the company’s founders, Varun Alagh and Ghazal Alagh, as well as financial backers including Sofina, Fireside Ventures, Evolvence India, Stellaris, and angel investors like Kunal Bahl and Rohit Bansal, the co-founders of Snapdeal, Rishabh Mariwala of FMCG behemoth Marico, and actor Shilpa Shetty Kundra.
The Securities and Exchange Board of India (Sebi), a market regulator, gave the company the go-ahead for the IPO on August 3.
The future leader in personal care and beauty products is being built by the house of brands Honasa Consumer Limited. The company has developed an internal portfolio of consumer brands that are mostly available online, including Mamaearth, The Derma Co., Aqualogica, and Ayuga. They have also bought shares in BBlunt and Dr. Sheth’s in addition to the owned brand.
The company, which also owns Mamaearth and The Derma Co. and the brands Aqualogica, Ayuga, and BBlunt, was valued at $1.2 billion when it secured $52 million in a round led by Peak XV Partners (formerly Sequoia Capital India) in January of last year. The proposed IPO does not involve the venture capital firm selling any of its shares.
According to the offer document, Honasa Consumer recorded revenue from operations of Rs 722.73 crore with a profit of Rs 3.67 crore between April and September 2022. Comparatively, operational revenue of Rs 943.46 crore and net profit of Rs 14.43 crore were recorded for the fiscal year that ended on March 31, 2022.
