MamaEarth CASE STUDY

About Mamaearth:

Mamaearth is a personal care company that focuses on products for infants and young children. They use advanced research methods to come up with answers to the problems parents are likely to encounter.

Every single item released by the brand is rigorously examined, including medical testing and confirmation of standards in Europe.

In addition to being certified by a third-party organization, the Made Safe label, the products contain natural elements such as Calendula Extract, Shea butter, and Jojoba Oil. Mamaearth plans to expand its range of safe, natural solutions, from morning sickness to colic, in the future.

Founder, Founding Year, and HQ Location:

Ghazal and Varun Alagh founded Mamaearth in 2016 and it is based in Gurgaon, Haryana, India.

Product Marketing countries:

Mamaearth has operations in Nepal, Bangladesh, and Sri Lanka, in addition to India, and is scheduled to debut in the Middle East.

In the thriving personal care business, it competes with Unilever's India unit, Hindustan Unilever, and Procter & Gamble Co.

Business Model:

It's a D2C company brand. D2C is an acronym for direct-to-consumer. A company manufactures a product in its own facilities and distributes it through its own channels. These channels might include an e-commerce site, social media, and a physical store. It is applicable to practically every industry.

Growth:

Mamaearth reached unicorn status in the fiscal year ending March 31st, 2022, and was also profitable during that time.

• On its own, the company suffered a deficit of INR 1,332.2 Cr in the financial year ending March 31, 21; however, it reported a profit of INR 19.8 Cr in the financial year ending March 31, 22.

  
  

• They are aiming to achieve a revenue of INR 1,000 Cr this year. The total revenue in FY22 increased by 101% from INR 472.1 Cr to INR 952.4 Cr.

  
  

• Further, the revenue from operations rose by two times to INR 931.7 Cr in FY21, compared to INR 459.9 Cr the year before.

  
  

• When Varun Alagh, the CEO of Mamaearth, was interviewed by a nationwide newspaper, he mentioned that the high frequency of repeat customers, together with the proliferation of other channels (online and offline), were the factors that made the startup profitable.

  
  

• Presently, 70% of Mamaearth's sales come from online sources, with the remaining 30% originating from offline channels. Additionally, the company gained other revenue of INR 20.6 Cr during the year.

  
  
  
  
  
  

Investments:

Mamaearth's investors include Sequoia India, Stellaris Ventures, Fireside Ventures, Marico's Rishabh Mariwala, Snapdeal founders Kunal Bahl and Rohit Bansal, and actress Shilpa Shetty Kundra, among others.

Total Revenue:

Mamaearth has raised $111.6M in funding over eight rounds, the most recent of which was raised on September 15, 2022, from a Venture - Series Unknown round.

Marketing Strategies:

Influencer Marketing:

Mamaearth has collaborated with several online Influencers. Influencers have assisted the brand in reaching a larger audience. Influencers promote these items on various social media channels. Mamaearth also collaborates with 500 mommy bloggers to raise brand awareness.

Collaboration with Bollywood:

Actress Shilpa Shetty Kundra as a brand ambassador has to be their most effective marketing technique. Shilpa Shetty is well-known, therefore her role as a brand ambassador and investment benefitted Mamaearth much.

Future:

The goal of Mamaearth is to become a 500 crore brand by obtaining five million new customers over the next three years.

Additionally, Honasa is looking to launch more products tailored to the needs of modern, millennial consumers,” states Ghazal Alagh.

To better establish brand recognition, the company intends to make use of influencer marketing and targeted digital channels.